Transfer of Shares Services
The transfer of shares refers to the voluntary transfer of ownership rights from one shareholder to another in a company. It is a common corporate activity in private limited companies and public companies, subject to the provisions of the Companies Act, 2013 and the company’s Articles of Association. Proper documentation and filing with the Registrar of Companies (ROC) are mandatory to make the transfer legally valid. Our team ensures seamless handling of share transfer procedures with complete legal compliance.
Types of Share Transfer Services
Share transfer can occur in various ways depending on the nature of the transaction.
Voluntary Transfer of Shares
When a shareholder willingly transfers shares to another person (e.g., to family members, investors, or other shareholders).
Transmission of Shares
Transfer of shares due to death, insolvency, or inheritance, processed legally without a transfer deed.
Private Transfer in Private Companies
Governed by Articles of Association, usually requiring board approval before shares are transferred.
Transfer in Public Limited Companies
Freely transferable, subject to compliance with SEBI and ROC regulations.
Gift or Family Transfer of Shares
Transfer of shares without monetary consideration, often within family or close relatives.
Transfer Due to Business Restructuring
In mergers, acquisitions, or corporate restructuring, shares are transferred as part of the transaction.
Why Transfer of Shares is Important?
Ensures Legal Ownership
Proper transfer updates the shareholder register and ensures rightful ownership.
Maintains Compliance
Filing with ROC and following legal procedures avoids disputes and penalties.
Facilitates Business Transactions
Enables investment, fundraising, or restructuring through shareholding changes.
Supports Succession Planning
Ensures smooth transfer of ownership to heirs or new shareholders.
FAQs
What documents are required for transfer of shares?
Share transfer deed (Form SH-4), share certificates, board resolution, and in some cases, stamp duty payment.
Is ROC filing required for share transfer?
Yes, companies must update their records and, if applicable, file with ROC to reflect the new shareholder details.
What is the difference between transfer and transmission of shares?
Transfer is a voluntary act by a shareholder, while transmission happens automatically due to death, succession, or insolvency.
Can shares be transferred without consideration (as a gift)?
Yes, shares can be transferred as a gift, but proper documentation and stamp duty compliance are required.
How long does the share transfer process take?
Typically 2–4 weeks, depending on company approvals, documentation, and ROC filing.