Contact Us

Overview

Advantage

Procedure

Documents

FAQ's

Transfer of Shares

Transfer of shares refers to the process of transferring ownership of shares from one shareholder to another. When a shareholder transfers their shares, they are essentially selling their ownership in the company to another individual or entity.The transfer of shares typically involves a legal process that includes documentation such as stock transfer forms, share certificates, and payment of any applicable fees or taxes. The process can occur either voluntarily or involuntarily, such as in the case of a company acquisition or a shareholder passing away.
Businesses Served
0 +
Years Experience
0 +
Google Rating
0 /5

Get Started

Mayank Wadhera

Expert in Transfer of Shares

Call Now
Whatsapp

Best Compliance Firm For Your Company

Free Legal Advice

Experts Team

On-Time Delivery

Overview
Advantages
Procedure
Documents
Faq's

Overview of Transfer of Shares

When it comes to private limited companies, one of their key features is the ability to transfer their shares. Unlike public corporations, the shares of a private company can be negotiable based on the company’s reports. However, the transfer of shares in a private limited company may be restricted by its Articles of Association (AOA). Hence, before beginning the share transfer process, it is essential to review the company’s AOA.

  • To transfer the ownership of a portion of a private limited company from one shareholder to another, a share transfer agreement is required.
  • This agreement will specify the terms of the transfer, including the price of the shares and any conditions that need to be met.
  • Overall, the process of transferring shares in a private limited company involves a legal agreement that outlines the details of the transfer and the obligations of both parties involved.

Advantages of Transfer of Shares

LiquidityShare transfer enables an individual to transform their stake in a company into cash, which is beneficial for those who need funds quickly or want to diversify their investments
DiversificationTransferring shares allows investors to diversify their portfolio, which can help mitigate risks, particularly if a large portion of their wealth is invested in one company
Estate PlanningBy transferring shares, an individual can efficiently transfer wealth to future generations or a charitable organization
Tax BenefitsDepending on the specific circumstances of the transfer, there may be tax benefits for both the seller and buyer
Corporate GovernanceTransferring shares can improve corporate governance by bringing in new shareholders with different perspectives and expertise, which can help the company grow and achieve its goals

Registration Process

To transfer shares of a private limited company, the following steps must be taken:

Step 1: Obtain the transfer deed form from the company’s records or the registrar of companies.

Step 2: Fill out the transfer deed form with the necessary information, including the name and address of the transferor and transferee.

Step 3: Have the transfer deed form signed by both parties.

Step 4: Obtain necessary approvals and signatures from the company’s directors and shareholders, as required by the company’s articles of association.

Step 5: Submit the completed transfer deed form to the registrar of companies for stamping and registration.

Step 6: The registrar of companies will review the form and, if satisfied, will stamp and register the transfer of shares.

Step 7: Update the company’s records to reflect the transfer of shares.

Step 8: Issue a new share certificate in the name of the transferee.

Required Documents

1. Notice by the transferor to the company

2. Board resolution for examining the notice by the transferor to the company

3. Offer letter presented by the company to the current shareholder

4. Objection letter from the present shareholders

5. Share transfer agreement in SH-4 form along with stamp duty returned

6. Share certificates

7. Board decision for filing the transfer of shares

FAQ's Transfer of Shares :-

The payment made between the Buyer and Seller to complete the transfer of securities is the consideration.
Only after the business has registered those shares does the transfer become final. Within one month of receiving the firm’s necessary transfer-related instrument, the company must deliver the share certificate. The appropriate name of the transferee should be endorsed on the transfer instrument.
The Income Tax Appellate Tribunal (ITAT) ruled that income tax is due when shares are transferred without consideration or for less than fair market value.
It is unlawful for a company to cancel a stamp. Even if the instrument was properly stamped, if a corporation accidentally transfers shares once, it cannot thereafter file for rectification of members.

Get Started

1. Application

Fill out the application form & other details.

2. Payment

Make the payment through online mode.

3. Process

We will process your application.

4. Confirmation

A mail will be send on completion.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

All Blogs
Contact us and grow your business
Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

  • Registration/Incorporation for all companies
  • Income Tax Filings
  • GST Registration & Filing
  • Company Annual Filings
  • Trademark Registration
  • Licencing
Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.

Legal Suvidha has been a one-stop Compliance Provider for all start-ups and entrepreneurs.

 

Start a Business

Annual Filings

Tax Filings

IPR Services

Facebook Twitter Youtube Linkedin Instagram
Legal Suvidha :

Want to Setup your business in India? Connect with the best Online Registration, Licenses and Return filing solution providers for business across India. Since 2007, LegalSuvidha has been a one-stop shop for all startups or entrepreneurs looking for a chartered accountant, company secretary or lawyer. We have been ensuring Startups and SMEs are fully compliant with India’s legal system. Over the past 15 years, the depth of our offerings has increased and that too at affordable prices and customer satisfaction has made our standing different and we are giving a tough competition to other online facilitators of legal services in India. We have the best team for Company incorporation, Trademark Registration, Auditing, Advisory and Tax Filing for large, medium, small businesses and Startups in India.

Starting a Business :

Most of the budding entrepreneurs are in dilemma about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship? Each of these has its advantages and disadvantages. The type of entity should be chosen only after one round of consultation with our experts, as they will be in a better position to guide on the same. For example, Registering as a private limited company would be a good fit for any venture that will look for funding at a later stage. You can contact Legalsuvidha for any type of registration and advice you need for your business transactions. We assure you of great professional service at a reasonable price. You can connect with us for a free check on the Company name availability.

Intellectual Property :

The importance of intellectual property is very much but most of the businesses are not aware of the same. We at LegalSuvidha simplify the process for you to register a Trademark for your brand, to get copyright for your artistic, creative ability and will also help you in patenting the process after a proper patent search patents which will ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. At Legalsuvidha, we are very well equipped to handle all your IP requirements. We facilitate trademark applications in just two days, copyright registration for all your software, pictures, audio, and video content, and can connect you to patent attorneys to conduct a patent search and file your patent applications.

Government Registrations :

To do any business in India, you need a license for almost everything. Started a manufacturing business? You need a GST Registration and a Trade License. For a food business, you need an FSSAI license. In case you have employees, You need a Professional Tax registration and Shops & Establishments Act Registration. If that’s not enough, you also need to file GST Returns and Professional Tax Returns.

Legal Documentation :

There is a lot of importance of legal documentation when you start your business, whether with your Investors, partners/co-directors, employees and any vendors you deal with. By getting a lawyer to draft contracts or agreements with new vendors, employees, and investors, you’re ensuring that you have all the downsides covered. At LegalSuvidha, we connect you to lawyers who will deliver complex documents, from shareholders’ agreements and founders’ agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days.

Mandatory Compliance :

It’s not enough to have started a private limited company or an LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs, Central Board of Indirect taxes and Central Board of direct taxes once you register your business. You need to inform them of every relevant change you make, whether it is adding a director, removing a partner or increasing authorized share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. At LegalSuvidha, we facilitate all these services completely online. This means you can engage a professional on retainer for the year and we’ll ensure that all the formalities are completed for you while you focus on your business.

ITR portal for Salaried employees and Businesses :

We are Authorized e-return Intermediaries and have recently launched our own ITR filing platform, this will help the salaried employees and businesses to get their ITR filed within the time and at a reasonable price. Through the use of automation, the system is highly effective and will help in filing ITR in up to 10 minutes for Salaried employees. We have on-boarded the best Chartered Accountants who will provide consultation for both Salaried employees and Businesses to file proper taxes to the government of India. This will help in avoiding legal notices in the future and will also help in getting the returns processed at the earliest. We are the first in the market to launch the ITR filing facility for FY 2018-19.

Legal Suvidha © 2013-2024. All Rights Reserved.