Transfer of Shares in India
Changing ownership in a company becomes simple and legally compliant with Transfer of Shares. It is the ideal process for shareholders who want to sell, transfer, or reallocate their ownership in a company.
Share transfer is governed under the Companies Act, 2013 and allows shares to be transferred from one person to another while maintaining the companyβs legal identity.
Whether you are restructuring ownership or exiting a business, share transfer ensures smooth and lawful transition.
What is Transfer of Shares?
Transfer of Shares is the process of transferring ownership of shares from one shareholder (transferor) to another (transferee).
After transfer, the new shareholder gets ownership rights in the company.
Key Features:
Change in ownership of shares
Company remains the same legal entity
Requires proper documentation
Applicable for Private & Public Companies
Governed by company rules (AOA)
Benefits of Transfer of Shares
Transfer of shares provides multiple advantages for business flexibility.
Ownership Change
Easily transfer ownership between individuals.
Exit Option
Shareholders can exit the company.
Business Restructuring
Adjust shareholding structure.
Legal Process
Ensures proper documentation and compliance.
Continuity of Business
Company operations remain unaffected.
Flexibility
Easy transfer as per company rules.
Required Documents
To transfer shares in India, you need the following:
π For Share Transfer:
- Share Transfer Deed (Form SH-4)
- Share Certificate
- PAN Card of transferor & transferee
- Identity & address proof
π Additional Requirements:
- Board Approval (if required)
- Stamp duty payment
Registration Process
Transfer of Shares process is simple and usually involves these steps:
Step 1: Execution of Share Transfer Deed
Fill and sign Form SH-4.
Step 2: Stamp Duty Payment
Pay applicable stamp duty.
Step 3: Submit Documents to Company
Provide share certificate and deed.
Step 4: Board Approval
Company approves share transfer.
Step 5: Update Register of Members
Record new shareholder details.
Step 6: Issue New Share Certificate
New certificate issued to transferee.
Pricing
The cost of share transfer depends on various factors such as government fees, professional charges, and document requirements.
- Stamp duty charges
- Documentation cost
- Professional service fees
π° Note: Cost is generally low and depends on share value.
π Contact us today for a transparent quote with no hidden charges.
Frequently Asked Questions
Yes, subject to company rules.
Yes, it is mandatory.
Usually 3β7 working days.
Yes, in most cases.
Depends on company AOA restrictions.
No, company remains the same.
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