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.
