Private Limited Company Share Transfer
The Share Transfer Procedure in a Private Limited Company is a structured process that facilitates transferring ownership of shares from one individual to another. Shares represent portions of ownership within a company, and transfers are regulated by the Companies Act 2013 and the company's Articles of Association (AOA).
Meaning of Share Transfer
Share transfer refers to the process where a shareholder voluntarily transfers their ownership rights — and associated obligations — to another person. Transfers follow the terms in the company's AOA and central laws.
Key Regulations for Transfer of Shares
The transfer of shares in a private company is governed by Section 56(1) & (3) of the Companies Act, 2013, and the Companies (Share Capital and Debentures) Rules, 2014, along with the company's AOA.
Documents Required for Share Transfer
- Share Transfer Deed: SH-4 signed by transferor & transferee
- Original Share Certificate
- PAN Card copy of transferee
- Board Resolution approving transfer
- Stamp duty payment evidence
Share Transfer Process (Summary)
- Review AOA for restrictions & pre-emptive rights.
- Transferor issues notice to directors and initiates valuation (if required).
- Execute SH-4, pay stamp duty and attach share certificate.
- Submit documents to company & obtain board approval.
- Company issues new share certificate to transferee.
How We Help
- Document preparation and stamping guidance.
- Board resolution & meeting support.
- Processing SH-4 and follow up until share certificate issue.
