Transfer of share is restricted by the articles of association of a private limited company, the shares to be transferred first offered to the existing members of the company, and only in case the same is not accepted by the existing members, it can be transferred to some other person. The entire process of share transfer is little complicated given stringent provisions of the company law and applicability of state stamp act which differs from state to state. We are experienced to handle the share transfer work and offer our compliance service at just Rs. 4000/-
Written notice is submitted to the company by the seller defining his intention to transfer the shares, The existing members of the company are informed and invited to buy the shares.
When the deal to transfer is finalised, and consideration of such transfer is fixed. Form No- SH.4 is filled up by the prospective buyers and the same is signed by transferor and transferee in presence of a witness. The transferor then hands over the share certificate and SH-4 to the transferee. Appropriate stamp duty on share transfer is to be paid by affixing share transfer tickets on the share transfer form.
After the transfer is executed, witnessed and adequately stamped, the transferee sends a request for updating of the register of members with his details in replacement of the transferor details. The company records such transfers.
After the due approval of the board of directors of the company, the share transfer is recorded in the register of transfer of shares and replacement share certificate is issued in the name of the new member of the company.