Transfer of Shares of Private Limited Company.

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Transfer of shares documents

LET'S CLEAR ALL THE DOUBTS!

When a shareholder of the company decides to transfer his or her shares to an existing shareholder or to any other person, the process is called the transfer of shares.

A) Documents required from Shareholder:  ID & Address proof & Share certificates of the Share transferor, Bank Statement showing transfer of amount.
B) Documents required from Company: Board meeting Resolution for Transfer, Minutes of the meeting & Share transfer form. Startupwala will guide you for preparing of these share transfer documents.

A) Transferor:  A person who transfers his or her shares is known as a transferor.
B) Transferee: A person who receives the shares from a person transferring it is known as a transferee.

When the share transferor and the transferee decide to transfer the shares, a form is signed between them which mentions details of the share transferred and stamp duty paid for the transfer document is known as Share transfer form.

Board Resolution is a written decision passed in a meeting of board of directors. This document informs the Directors about the request received by members for share transfers and to record the entries and make necessary changes in the statutory registers of the company.

No E-form is required to be filed for share transfer with the ROC, but the information relating to share transfer is required to be recorded and filed with the ROC at the time of Annual return filing of the company.

 

Since there is no E-filing involved, filing fees is not applicable. However, Stamp duty charges of 0.25 % of the total consideration value of share transfer are applicable on share transfer.

 

No, Signature of all the shareholders is not required. Only signatures of the share transferor and transferee are required.

 

No, physical Signatures are required on the share transfer form.

 

Yes, Share certificates are an integral part of the share transfer process. The share certificate is required for verification and making note of the entries of share transfer.

 

Yes, statutory registers are an integral part of the share transfer process. The registers are required for verification and making note of the entries of share transfer.

 

We can assist you in this, please discuss this with our business consultant and who can guide you further.

 

We can assist you in this, please discuss this with our business consultant and who can guide you further.

 

Yes, we can proceed with the share transfer. Signatures are required to be obtained on the share transfer form which can be arranged as per the person’s availability.

 

Yes, Bank statement is an important document that shows the deposit of share transfer money between transferor to the transferee. It is based on this document, further documentations are prepared.

 

No, In this case transmission of shares has to be done which is a different process than share transfer. In the event of death of shareholders, the shares being the property of the shareholder, the same is passed on to his or her legal heirs.