The ownership of a company limited by shares is held by the shareholders of the Company and the shares of a company are movable property and are generally freely transferable. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company’s shares to an outsider.
Share transfer or allotment
Process
What you do
Just fill our Simple Questionnaire and provide us all the Information & Documents related to the Transfer of Shares or Allotment of Shares
What We do
We will prepare all the documents required for the Transfer/Allotment of Shares and File the necessary forms with the Registrar of Companies.
What you get
Once the Form will be approved by the Registrar of Companies we will hand over to you all the Documents related to the Transfer/Allotment.
Package
Frequently Asked Questions
What is the time limit for issuing certificate on transfer of shares?
A company should deliver all the certificates of transferred securities within a period of one month from the date of receipt by the company of the instrument of transfer.
What is the applicable stamp duty on transfer of shares?
As per the provisions of Companies Act, 2013, where share transfer form is delivered to the Board it should be duly stamped, with adequate value, and dated and cancelled as per section 12 of the Indian Stamp Act. The seller of the shares is responsible for the payment of the stamp duty. The seller must pay stamp duty at the rate of Rs 0.25 for every Rs. 100 of share. Special adhesive stamps bearing the word “share transfer” shall be used for stamping for share transfers.
How to determination of valuation of shares for purpose of affixing stamps on the transfer deed happens?
In case of listed companies, it is very easy to find out the price of the shares from the stock exchanges. However, in case of private companies, the value of the shares are difficult to obtain, in such cases the value of the shares for the purpose of determining the stamp duty, will be taken on the basis of the average market value of the shares at the time of transfer or the agreed price between the seller and the buyer, whichever is higher.