We will give you a personalized consultation to ensure we have all the details in place for share transfer to be executed and recorded by a company.
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Easy And Simple Process
1. Fill Form
Simply fill the form to get started
2. Call to Discuss
Our expert will connect with you & prepare documents
3. Share Transfer is executed
Share transfer deed is executed and recorded
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IT and Infosec
IT and Infosec
ExpertPoint can help you to transfer the share of your company. Quick and hassle free process
Learn more about Share Transfer
Share Transfer Services
A private limited company is a closed entity. Hence Articles of Association (AOA) must be reviewed to understand the restrictions placed on transfer of shares by the members. The restrictions as per the AOA are legally binding. The restrictions placed by Articles can be of two scenarios:
Pre-emptive rights: A shareholder who wishes to sell his shares must first offer it to the existing shareholders of the company at a price determined by the directors or auditors of the company. The articles may have the provisions to determine the price of the share. If existing members are not interested, the shares might be freely transferable to outsiders.
Directors power: The directors can also refuse registration of transfer of shares under circumstances as prescribed in the Articles of Association.
Hence review of AOA is a prerequisite to approving and registering transfer of shares.
It takes around 7-10 working days to execute the transfer and record the transferee’s name in the register of members.
- Review the AOA: Articles of Association of the Private Limited Company must be reviewed and restrictions, if any, must be addressed.
- Notice to the board of directors: Shareholder must issue a notice in writing to the Director of the Company about intention to transfer hare of the company.
- Determine price and notify the existing members: Once the board receives the notice, the board shall determine the price as per Articles of Association at which the shares of the Company will first be offered to present shareholders of the Company. (Usually this price is determined by the Directors of the Company or the Auditor of the Company). The company must then give notice to the other shareholders about the availability of share, the last date to purchase the shares and the price at which the shares are available.
- Execute Share Transfer Instrument – SH-4: If existing shareholders are not interested, the shares can be transferred to outsiders. Securities Transfer Form SH-4 has to be Executed. It has to be signed by both transferor and transferee. Share transfer deed has to be stamped as per the Indian Stamp Act and Stamp Duty Notification in force in respective State. The instrument has to be delivered to the company within 60 days from the date of execution.
- Board Resolution: Once the company receives share transfer deed along with requisite documents then company will check the deed and documents then pass resolution for acceptance of same in the Board Meeting of the Company. After this the transferee’s name is recorded in the register of members.
- Deliver Share Certificate: The Company will within one month of passing of Board Resolution will issue share certificate in the favour of transferee. The Company will endorse the name of Transferee behind the Share Certificates.
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