Share Transfer
Legal Process for Transferring Ownership in a CompanyWhy is Share Transfer Documentation Critical?
In any Private Limited Company, ownership is represented by **Shares**. When a shareholder sells their shares, gifts them, or transfers them (e.g., due to inheritance), this change must be accurately recorded in the **company's statutory registers** and necessary stamp duty must be paid.
If the share transfer process is not executed correctly, the transfer may be deemed invalid, leading to disputes over ownership and potential non-compliance issues with the MCA (Ministry of Corporate Affairs) and tax authorities.
Key Requirements
- **Mandatory Document:** Share Transfer Deed (Form SH-4).
- **Requirement:** Deed must be duly **Stamped** (Stamp Duty).
- **Filing Deadline:** Within **60 days** of Board Approval (if applicable).
- **Company Duty:** Update Register of Members and issue new Share Certificates.
Cashynomy's 5-Step Share Transfer Process
Transfer Deed (SH-4) Execution
Preparation and execution of the Share Transfer Deed (Form SH-4) by both the seller and the buyer.
Stamp Duty Payment
Ensuring the Deed is properly stamped as per the respective State's stamp duty laws based on the share value.
Board Approval & Resolution
The Company's Board of Directors approves the transfer and passes a Board Resolution.
Register Update & New Certificate
Updating the **Register of Members** and issuing a new **Share Certificate** in the name of the new shareholder.
Share Transfer Compliance Package
Ensure your company's ownership records are legally flawless and compliant with all stamp duty requirements:
Share Transfer Plan
- ✔ Drafting of Share Transfer Deed (SH-4)
- ✔ Calculation of Stamp Duty Liability
- ✔ Preparation of Board Resolution
- ✔ Update of Register of Members (Statutory Register)
- ✔ Issuance of New Share Certificate