Share Transfer
Share transfer is the process of legally transferring ownership of shares from one party to another. At Global Taxman, we provide expert assistance in ensuring a smooth and compliant share transfer process.
What is Share Transfer?
Share transfer involves changing the ownership of shares from an existing shareholder to a new one. This can occur due to sale, gift, inheritance, or as part of a business transaction. It requires adherence to legal and regulatory guidelines to ensure validity.
Types of Share Transfer
- Voluntary Transfer: Initiated by the shareholder, usually in cases of sale or gifting of shares.
- Transmission of Shares: Occurs when shares are transferred due to inheritance, will, or legal succession.
Step-by-Step Process
- Execution of Share Transfer Form: Both the transferor and transferee must complete and sign a Share Transfer Form (Form SH-4).
- Submission of Documents: Submit the transfer form along with original share certificates to the company.
- Verification by Company: The company verifies the documents and ensures compliance with its Articles of Association.
- Approval by Board: The company's Board of Directors approves the transfer during a board meeting.
- Update of Records: The company updates its Register of Members and issues a new share certificate to the transferee.
Documents Required
- Duly completed and signed Share Transfer Form (Form SH-4).
- Original share certificate(s).
- Proof of identity and address of the transferee.
- Copy of the resolution passed by the Board (for companies).
- Consent letter from the transferor and transferee (if applicable).
Why Choose Global Taxman?
- Expert Assistance: Our team ensures compliance with all legal and procedural requirements.
- End-to-End Support: From document preparation to approval, we handle the entire process.
- Timely Execution: We prioritize quick and efficient share transfer services.
- Transparent Pricing: Affordable services with no hidden charges.
Frequently Asked Questions (FAQs)
- Can shares be transferred to a minor? Yes, but the shares will be held by a guardian on the minor's behalf.
- What is the stamp duty on share transfer? Stamp duty is 0.25% of the total consideration or value of shares transferred.
- Can a private company restrict share transfer? Yes, as per the Articles of Association, private companies can impose restrictions on share transfer.
- Is physical share transfer still allowed? No, as of April 1, 2019, all share transfers must be in dematerialized form for listed companies.
