Company Share Transfer
Company Share Transfer – Classic Partners LLP
Classic Partner – Chartered Accountants for Corporate & Statutory Compliance
What are Company Share Transfer?
A share transfer is the process of voluntarily transferring ownership of shares from one shareholder to another, in a Private Limited or Public Limited Company. While shares are considered a movable property, the transfer must comply with the provisions of the Companies Act, 2013 and the company’s Articles of Association (AOA).
In a Private Limited Company, share transfers are restricted and subject to the approval of the Board of Directors. In contrast, Public Companies allow free transfer of shares, unless restricted by law.
Procedure for Share Transfer
Check the Articles of Association (AOA)
Ensure that the AOA permits transfer of shares.
If restrictions exist, obtain Board approval before proceeding.
Execution of Share Transfer Deed (Form SH-4)
The transferor (seller) and transferee (buyer) must execute a duly stamped and signed Form SH-4.
Submission of Share Certificates & SH-4
Submit the original share certificate along with SH-4 to the company within 60 days of execution.
Board Approval
The Board of Directors reviews and approves the transfer at a Board Meeting.
Endorsement & Entry in Register
The company endorses the transfer on the share certificate.
Updates the Register of Members with the transferee’s details.
Issue of New Share Certificate
A new share certificate is issued in the name of the transferee within one month from the date of registration of transfer.
Documents Required
Duly executed Share Transfer Deed (Form SH-4)
Share certificate(s) of the shares being transferred
PAN & ID proof of transferor and transferee
Board resolution approving the transfer
Proof of stamp duty paid
Important Points
Stamp duty is payable @ 0.25% of the consideration amount or market value, whichever is higher.
Transfer must be lodged with the company within 60 days of execution.
In case of partly paid shares, consent of transferee is required.
For NRI/foreign investors, FEMA & RBI guidelines also apply.
Why Choose Classic Partner?
Assistance with drafting and execution of Form SH-4
Guidance on stamp duty payment and compliance
ROC filing support where applicable
End-to-end advisory on FEMA & NRI share transfers
Updating of statutory registers and share certificates
Need help with smooth and compliant share transfers?
Classic Partner ensures accurate documentation, timely approvals, and full compliance with Companies Act, 2013.
