Share Transfer

Share transfer refers to the process of transferring ownership of shares from one individual or entity to another in a company. It involves the transfer of shares from the transferor to the transferee in exchange for consideration.

Criteria

  • The transferor (seller) needs to execute a share transfer deed in favor of the transferee (buyer)

  • Delivery of Share Certificate to transferee

  • A resolution approving the share transfer

  • No Objection Certificate (NOC)

Document Required

  • The transferor needs to deliver the original share certificate

  • The transferor and transferee need to provide their identity proof

  • Address Proof of both transferor and transferee

  • fees for stamping the share transfer deed 

Time required

  • The time required for share transfer can vary depending on various factors, such as compliance with the regulatory requirements, 
  • The time taken to obtain necessary approvals, and the processing time taken by the company and the authorities. However, in general, the time required for share transfer is approximately 15-30 days.

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FAQ

What is share transfer in a company?

Share transfer refers to the process of transferring ownership of shares from one individual or entity to another in a company. It involves the transfer of shares from the transferor to the transferee in exchange for consideration.

Can shares be transferred in a private limited company?

Yes, shares can be transferred in a private limited company subject to the Articles of Association of the company and the Companies Act, 2013. The transfer of shares in a private limited company is governed by the provisions of the Companies Act, 2013 and the Articles of Association of the company.

What is the process of share transfer in a company?

The process of share transfer in a company involves the execution of a share transfer agreement, execution of share transfer deed, stamping of share transfer deed, and registration of share transfer with the company.

Can shares be transferred at a price lower than the face value?

Yes, shares can be transferred at a price lower than the face value. The price of shares is determined by the market forces of supply and demand, and the face value of shares is the nominal value of the shares that is printed on the share certificate.

Is stamp duty applicable on share transfer in a company?

Yes, stamp duty is applicable on share transfer in a company as per the stamp duty laws of the respective state where the company is registered.

What is the time limit for registration of share transfer in a company?

The time limit for registration of share transfer in a company is 60 days from the date of receipt of share transfer deed along with other required documents by the company.

What documents are required for share transfer in a company?

The documents required for share transfer in a company include the share transfer deed, original share certificate, and letter of request for transfer of shares.

No, shares cannot be transferred without the consent of the company. The transfer of shares requires the approval of the board of directors of the company.

Can a shareholder transfer all his shares in a company?

Yes, a shareholder can transfer all his shares in a company subject to the Articles of Association of the company and the Companies Act, 2013.

What is the role of the company in the process of share transfer?

The role of the company in the process of share transfer is to approve the transfer of shares and register the transfer of shares in the register of members of the company. The company also issues a new share certificate to the transferee after the registration of share transfer.

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