Company Share Transafer
⇒ Share transfer refers to the process of transferring ownership of shares from one shareholder to another in a company. It typically applies to private limited companies when an existing shareholder wants to sell or gift their shares. This process must follow the company’s Articles of Association (AOA), and in most cases, the board of directors must approve the transfer.
⇒ To complete a share transfer, the seller and buyer must execute a share transfer deed (Form SH-4), pay the required stamp duty, and submit the documents to the company. The company then updates its register of members and issues a new share certificate to the buyer. Any change in shareholding may also require compliance with RBI filings in case of foreign investors.