Transfer of shares in Pvt. Ltd company

 

 

 

 


Introduction

Shareholders of a Private Limited Company are the owners of the Company. If a shareholder transfers his share, that means he is transferring his ownership to other person. The transfer of shares in a Private Limited Company is governed by Section 56 of the Companies Act, 2013 and Rule 11 of Companies (Share Capital and Debentures) Rules, 2014. Right of a Shareholder to transfer his share are always subject to provision in Article of Association of a Company.

Transferability of shares in private limited company makes convenient for shareholders to change the stake among the members. Following is the procedure for transfer of shares:

Procedure for Transfer of shares in Pvt. Ltd company

Steps

  1. Review the Article of a Association of a Private Limited Company.
  2. Verification of your documents and submission of name approval.
  3. Shareholder must given a written notice to the Director of the Company about transfer of shares.
  4. The Company shall intimate to the other members about the intention of shareholder to transfer his shares.
  5. The Company then will determine the price of share to be transferred.
  6. Obtain the share transfer deed in Form SH 4 duly executed by both the transferor and transferee.
  7. Witness to sign the share transfer deed with name and address.
  8. Deliver to the Company, both share transfer deed and Share Certificate
  9. The Board of Directors shall register the transfer after passing resolution, if all the documents are found in order.
  10. The Company thereafter is required to deliver the Certificates of all the shares transferred within one month of application for the registration of transfer of shares.

Documents Required

   Article of Association of the Company

   List of Shareholders.

   Share Certificates.

   Transfer deeds (Form SH 4).

Services included in our package

About Us

Compliance Advisor LLp is a Online services platform for helping Entrepreneurs to easily start and grow their business, at an affordable cost

Read more »

Quick Link

Contact Info

Design & Hosted by Bhopalone