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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.

Transfer-of-Shares
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INTRODUCTION

Transfer of shares refers to the transfer of title toshares, voluntarily, by one party to another. They are transferable in the manner provided by the articles of the company,

Transfer-of-Shares

Persons involved in transfer:-

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DOCUMENTS REQUIRED

Our Packages for Transfer of Shares

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BASIC

All Inclusive Fees

9,799

PRO

All Inclusive Fees

14,799

PREMIUM

All Inclusive Fees

23,799

Procedure to Transfer of Shares

Step - 1 : Notice of Intention to Transfer Shares (Notice of Intention to Transfer Shares).

The seller gives the firm written notice of his desire to transfer the shares. The company's current members are notified and encouraged to purchase the shares

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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.

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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.

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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
faq

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.

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