Share Transfer of Private Company
Share transfer in a private limited company is a common occurrence, and it involves the transfer of ownership of shares from one shareholder to another. The process for transferring shares in a private limited company involves the following steps:
Obtain Share Transfer Deed: The transferor and the transferee must execute a share transfer deed. The deed must be duly stamped and signed by both parties.
Approval from the Board of Directors: The board of directors of the company must approve the transfer of shares. The transfer must be recorded in the minutes of the board meeting.
Intimation to the Company: The company must be informed of the transfer of shares within 30 days from the date of transfer. The company must update its records to reflect the change in shareholding.
Stamp Duty: The share transfer deed must be stamped as per the applicable stamp duty rates.
Update Share Certificate: The share certificate must be updated to reflect the transfer of shares. The transferor must return the original share certificate to the company, and the company must issue a new share certificate to the transferee.
The following documents are required for share transfer in a private limited company:
- Share transfer deed duly executed by the transferor and the transferee
- Board resolution approving the transfer of shares
- Copy of the share certificate
- Any other document required by the company
The time required for the share transfer process depends on the efficiency of the company and the time taken for stamping and updating the share certificate. Typically, the entire process can take between 15 to 30 days from the date of execution of the share transfer deed.