THINGS TO KNOW BEFORE YOU REGISTER- TRANSFER OF SHARES
Shares can be transferred from a shareholder to another person (either a new or existing shareholder). Shares are transferred by way of gift or sale. Typically, shares are transferred to introduce a new shareholder.In Private Companies, there are some restrictions on transfer of shares. We at startupcounter.com provides you the service at reasonable charges.
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INTRODUCTION
Persons Involved In Transfer:-
Subscriber to Memorandum.
Legal representative, in case of deceased partner.
Transfer or Transferee
Company( whether listed/unlisted).
List Of Documents Required For Transfer of Shares
Id and address proof of Transferee
Request letter from transferor
Proof of receipt of considertaion amount
Our Packages for Transfer of Shares
BASIC
All Inclusive Fees
- 9,799
- Transfer between one person to another person
PRO
All Inclusive Fees
- 14,799
- Transfer between Entities
PREMIUM
All Inclusive Fees
- 23,799
- Transfer between Foreign Person
Procedure Of Transfer of Shares
Step - 1 Notice Of Intention To Transfer Shares (Notice Of Intention To Transfer Shares).
Notice Of Intention To Transfer Shares (Notice Of Intention To Transfer Shares).
Step - 2 Transfer Of Shares Documentation
When the transfer agreement is finalised and the consideration for such a transfer is set. Prospective purchasers fill out Form No. SH.4, which is then signed by the transferor and transferee in the presence of a witness. The share certificate and SH-4 are subsequently given to the transferee by the transferor. Stamp duty on share transfers is paid by attaching share transfer tickets to the shares.
Step - 3 The Share Transfer Form And Certificate Are Sent To The Company By The Transferor.
The transferee sends a request to update the register of members with his details in place of the transferor's details after the transfer is completed, witnessed, and properly stamped. The company keeps track of such transactions.
Step - 4 The Corporation Has Issued A New Share Certificate.
The share transfer is documented in the register of transfer of shares and a replacement share certificate is issued in the name of the new member of the firm once the board of directors has given its approval.
FAQ
Most Frequent Questions And Answers
Share transfer stands for the process of transferring existing shares from one person to another, either by sale or gift.
Stamp duty @ 0.25% of the market value or the consideration amount (whichever is higher) should be affixed on the instrument of transfer. The date taken for calculation of market value must be the same as the execution date mentioned on the instrument of transfer.
Yes, in certain cases director may refuse to register transfer of shares. It is common for articles of private limited company to gives its director the power to refuse to register a transfer of shares.
Transfer of shares refers to the transfer of title to shares, voluntarily, by one party to another. Transmission of shares means the transfer of title to shares by the operation of law. Insolvency, death, inheritance or lunacy of the member.