BBNC

Share Transfer


A shareholder's shares can be transferred to another individual (either a new or existing shareholder). Shares can be transferred on as a gift or sold. Shares are typically transferred to introduce a new shareholder.
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Overview

The terms "transfer" and "transmission" of shares are not equivalent. The term "transfer of shares" refers to the voluntary transfer of ownership of shares from one party to another. The transmission of shares, on the other hand, refers to the transfer of ownership of shares through the legal process initiated by a legal heir.

Transfer of shares requires payment of a stamp duty depending on the market value of the shares, whereas the transmission of shares method does not need payment of a stamp duty.

Section 56 of the Companies Act 2013 states that a company would only register the transfer of its shares and other securities if a valid instrument for transfer of shares (share transfer form) is filed as stipulated in Form No. SH 4.

Within 60 days of the date of completion of the share transfer agreement, the transferor or transferee of the shares must deliver Form SH 4 to the firm. Along with the share transfer certificate or the securities certificate.

If there isn't a share transfer certificate, the application for transfer of shares must be accompanied by a letter of allocation of securities. In addition, within two weeks after receiving a notification, the buyer must provide a "No Objection Letter."



Checklist/Requirements

  1. Corporate Identification Number (CIN) /name of the Company
  2. Transferor and Transferee details
  3. Number of shares to be transferred
  4. Consideration for transfer of shares
  5. Folio Number details
  6. Old Share Certificate details
  7. Address of Transferee
  8. e-Mail ID of Transferee
  9. Original Share Certificates of Transferor

Process of Share Transfer

Step 1: Raise a request with us, discussion with BBNC team
Step 2: Client to share the information/documents required
Step 3: Company to receive duly executed Transfer form (SH-4)
Step 4: Convene and hold Board Meeting and pass Board Resolution
Step 5: Share Signed documents with BBNC
Step 6: BBNC to provide new share certificates

Key Deliverables

  1. Duly stamped Share Transfer Form (SH-4)
  2. New Share Certificates
  3. Resolutions

Shares transfer

Why Choose Us

  Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

  Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

  One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

  Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


What would be the easiest way to consider share transfer of a company?
A resolution relating to the easiest manner to transfer shares in a company must be examined.
The following parties are involved in the company share transfer:
  • Transferor
  • Transferee
  • Company
It is not mandatory to have a share transfer agreement but the transferor and transferee can enter into one at their own discretion.
The transferor forgoes his rights to the extent of shares transferred. The ownership and rights are transferred from transferor to transferee.
Transfer of shares is between transferor and transferee where both the parties are alive. In case of transmission, the shares of the deceased shareholder are transmitted to their legal heir in accordance with the provisions of the act.
In case of transfer between two resident individuals, the provisions of FEMA do not apply. However in case of a NRI or a foreign national the compliance with FEMA becomes mandatory.