Share Transfer
A shareholder’s shares can be transferred to another person, whether they are a new or existing shareholder. This transfer can occur as a gift or through a sale. Typically, shares are transferred to bring a new shareholder into the company. If you need, I can help you rephrase or expand this explanation.
Overview
The terms “transmission” and “transfer” of shares are not interchangeable. A “transfer of shares” is when ownership of shares is voluntarily transferred from one person to another. Conversely, the term “transmission of shares” describes the legal procedure that a legal heir starts to transmit ownership of shares.
In contrast to the transmission of shares method, which does not require payment of stamp duty, the transfer of shares requires payment of stamp duty based on the market value of the shares.
According to Section 56 of the Companies Act of 2013, a firm will only register the transfer of its shares and other securities if it files a share transfer form, which is a valid instrument for the transfer of shares.
The transferor or transferee of the shares must provide Form SH 4 to the company within 60 days of the date the share transfer agreement was completed. in addition to the securities certificate or the share transfer certificate.
A letter of allocation of securities must be included with the application for a share transfer if there isn’t a share transfer certificate. Furthermore, the buyer has two weeks from the date of notification to submit a “No Objection Letter.”
Checklist/Requirements
- Details about the transferor and transferee, as well as the company’s name and corporate identification number (CIN).
- The quantity of shares that need to be moved.
- Taking into account the transfer of shares.
- Details of the Folio Number.
- Details of an old share certificate.
- Transferee’s address and email address.
- Transferor’s original share certificates
Process of Share Transfer
Step 1: Raise a request and discuss the share transfer process with the BBNC team.
Step 2: Client shares the required information and documents.
Step 3: Company receives the duly executed Share Transfer Form (Form SH-4) from the transferor and transferee.
Step 4: Convene and hold a Board Meeting to pass a resolution approving the share transfer.
Step 5: Share all signed documents with BBNC.
Step 6: BBNC prepares and provides the new share certificates to the transferee.
Key Deliverables
- Share Transfer Form (SH-4) properly stamped.
- Resolutions for New Share Certificates.
Why Choose Us
Friendly to Entrepreneurs
Our pros will offer you all of the promised deliverables within the allotted period, and we make the procedure so quick and simple that you won’t even feel the headache of all the paperwork.
Skilled Experts
Every one of our experts is trained and skilled in that specific field. ensuring that no errors are made when filing with the authorities in order to prevent the company from incurring penalties for errors.
One Place to Go for All of Your Needs
We assist you at every stage of your company’s development, including incorporation, accounting and taxation, secretarial compliance, and legal support.
Economical
Since cost is a major factor in any business’s growth stage, we don’t surprise our clients with extra fees; instead, you pay what is shown in the original plan.
