Transfer of Shares
Our Service Includes (Price Starts 5000)
- Free consultancy
- Drafting of documents as per requirements
- Getting the required Board Meeting conducted
- Time : 7-10 Working days
- 100% Online Process
CONTACT US
ABOUT
Transfer of shares means the transfer of ownership of the shares from one person to another. Transfer of shares is effected by removing the name of the existing shareholder from the register of members and by inserting the name of the transferee in place of the transferor in the register of members. Shares of a public company are freely transferable whereas there are certain restrictions on the transfer of shares of a private company.
ADVANTAGES
You can lower your tax bill
If structured properly, you can avoid paying taxes on the amount of equity you roll back into the company. The taxes won’t be due until a future liquidity event. Rolling equity back into the company can be an attractive way to reduce your tax bill post-transaction.
You are an owner of a growing business
Private equity groups grow businesses both organically or through acquisition as a means toward driving the value of the business up for its future sale. So here’s a business you know and understand and someone is investing money and time to grow it substantially. That can be a very attractive investment for many business owners.
You will be aligned with the new private equity buyer
When the private equity groups sell the business it will most likely be a bigger, better run business than it was during the first transaction. This should garner a bigger purchase price for the business. Do not underestimate how a relatively small investment back into your business after a sale (say 5%) can yield a return larger than the proceeds you received after you sold a majority of the business. We see it over and over again. Many times, the second sale for the business owner that remained a shareholder results in the higher profitability.
You will be aligned with the new private equity buyer
The company who is complaint with the ROC filing procedure is able to make its better image and helps in improving its business image.
PROCEDURE
STEP 1
Review and revise the AOA: The company’s articles of association must be checked and the limitation should be discussed.
STEP 2
The shareholders will intimate the company’s manager with a written notice of intent to move transfer the company’s shares.
STEP 3
The instrument of transfer should be duly filled and signed by both the transferor and the transferee. The instrument of transfer must be in the form prescribed by the Government.
STEP 4
The instrument of transfer should be duly filled and signed by both the transferor and the transferee. The instrument of transfer must be in the form prescribed by the Government.
REQUIREMENTS
Documents
Passport Photo of both the transferee and transferor.
Documents
Income Tax PAN of both transferee and transferor.
Documents
Aadhaar Card or Voter ID Card of both the transferee and transferor.
Documents
Original Share Certificates of the Transferor along with Share Transfer Deed
PRICE
BASIC
Rs.5000
Share Transfer in Private Limited Company – Both Transfer and Transferee being Individual person (Exclusive of Govt Fee and GST)
₹5,000.00Add to cart
STANDARD
Rs.10000
Share Transfer in Private Limited Company – Between Company and other person being Individual (Exclusive of Govt Fee and GST)
₹10,000.00Add to cart
PREMIUM
Rs.21000
Share Transfer in a Company – Between Indian Company/Individual and Foreign Company/Individual (Exclusive of Govt Fee and GST)
₹21,000.00Add to cart
FAQs
1. Can Share Transfer be done in Public Limited Company?
Any Share Transfer done in a Public Limited Company after April 01, 2019, must be in dematerialized form.
2. Is there any form filing to Registrar of Companies in case of Transfer?
No, transfer of shares is an internal process which only gets recorded in minutes, and no further filing of the form with ROC is required
3. Can shares be transferred to an outsider ?
Yes, shares can be transferred to anyone subject to the approval of existing shareholders in case of Private Limited Company.
4. Is there any Stamp duty to be paid on transfer of shares?
The present stamp duty rate for transfer of share is 15 paise for every one hundred rupees of the value of the share or part thereof. That means for shares valued Rs. 10,000, the stamp duty will be Rs. 15/-.
5. What is the time limit for issuing share certificate?
The Company shall register & issue the share certificate in the name of the transferee within one month of the receipt of the duly executed & stamped share transfer instrument along with the original certificate of the shares being transferred.
6. At what price shares should be transferred?
Share transfer value can be agreed mutually by the transfer and the transferee, however it requires valuation as per FMV done under the provisions of Income Tax.
