Transfer of shares – Private Limited Company
A Company shall not register any Transfer unless a proper instrument of Transfer held in physical form in Form No. SH-4 duly stamped, dated and executed by or on behalf of Transferor and the Transferee. Stamp duty is payable as per Indian Stamp Act, 1899. Further post January 2020 stamp duty is payable online.
Procedure for transfer of shares: Transferor will request the Company to Transfer his shares The Company will sent Notice to all existing members that the above mentioned shareholder has shown his intention to transfer his shares If no existing Member has shown interest then Company will intimate the Transferor that he can sell his shares to non-member. The Transferor will submit SH-4 duly executed, dated and stamped to the Company. After submitting same, the Company will verify the contents of the SH-4. And if it finds everything is in place then it will place the same before the approving authority Board Resolution approving Transfer of shares and a resolution would be passed approving the transfer of shares. On approving share transfer at board meeting register the transfer of shares and issue the endorsed share certificate to the Transferee within one month of receipt of Instrument of Transfer. Once this resolution is passed register of members shall be updated with new names.
