Mandatory Compliances Services
The ownership of a company limited by shares rests with the shareholders of the Company and the transfer of ownership of a company can be achieved by transferring shares of the company from one person to another. In a public company share transfer can be achieved easily while Share transfer in a private limited company is more restricted due to the fact that shares of a private limited company are usually owned by a family or a small group of people or entities. The Articles of Association of a Private Limited Company usually have clauses that limit the right of a shareholder to transfer the company's shares to an outsider. Hence, it is important to review the Articles of Association of the Company before effecting a share transfer.
Under Section 56 of the Companies Act, 2013, a company can register a transfer of securities of the company only when there is a proper instrument of transfer in the format laid down in Form No SH. 4. The section 56 also stipulate that if a company has no share capital, it can not register a transfer of securities of the company, or the interest of a member of the company. At Biz pole, our experts can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.
Documents required for share allotment
- Original Share Certificate of shares to be transferred
- Certificate of Stamp duty payment (Franking) on issue of share certificate
- Valuation and the share transfer agreement
- Share transfer form duly signed by the parties
- ID and address proof of the transferor and transferee
- Proof of payment of consideration of transfer if any
Why avail Bizpole Services
Our experts complete all the compliance requirements needed for transfer of shares in your company. Our charges are only a fraction of the price charged by offline company secretaries making it cost effective for your business. We also strive to give you absolute clarity on the process to set realistic expectations.
- Drafting of necessary documents
- Prepare form SH-4 duly signed by both the seller and the buyer
- Share transfer deed
- Share certificate or allotment letter