Enquiry form
The shareholders are the owners of a company limited by shares who are vested with wide powers of controlling the Company like appointment and removal of Directors, approval for bringing additional funds and the approval of related party transactions etc.
Transfer of ownership of a company can therefore be affected by transferring the shares held by one member to another. Share transfer in a Private Limited Company is usually more restricted in compared to a Public Limited Company. In case of Private Limited Company, the shares are closely held by either a small group of persons, family members or friends, etc. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company’s shares to an outsider. Therefore, it is important to check the provisions of the Articles of Association of the Company prior to affecting a share transfer to understand additional compliance, if any.
Step 1: Fill up and execute the share transfer form in Form SH-4
Step 2: Pay the stamp duty on the form SH-4 by affixing the share transfer Stamps of 0.25% of the total consideration amount involved in the share transfer
Step 3: Deliver the SH-4 at the registered office of the Company
Step 4: Pass the Board Resolution for approval of share transfer
Step 5: Make necessary entries in the register of Members and register of share transfer
Step 6: Make necessary endorsement at the back of share certificate and handover the same to the transferee.
The entire process for registration of Company will take at least 2 to 4 working days.
Transfer of shares is a transaction resulting in a change of share ownership. A shareholder, whether in public or private company, has a property in his share which he has a right to dispose of, subject only to any express restriction which may be found in the Articles of Association of the Company.
Transfer of Shares usually takes 1-2working days subject to the approval of the Central Govt. and the receipt of documents from the clients.
Yes. The Share Certificate of the transferors will be endorsed on the back side with the transfer details such as Folio No. of the transferee, no. of shares held and the signature of Company Officer, etc. will be handed over to the transferee to whom the shares have been transferred.
The penalty for a company a minimum default of Rs.25,000 and a maximum of Rs.5,00,00
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