Ask 4 Compliance | Shares Transfer
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SHARE TRANSFER

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SHARE TRANSFER

The ownership of a company limited by shares is held by the shareholders of the Company. The shareholders in turn appoint Directors to manage the affairs of the Company. Hence, ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company’s shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to affecting a share transfer.

Our team of highly qualified professionals at Ask4compliance.com can help you Transfer Shares of a company by completing the necessary procedures as per Companies Act, 2013.

Process & Timeline

3-5 days

Professional Fees

Rs. 2500

(GST, Government Fees and other Out of Pocket Expenses Extra)

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Highlights of Share Transfer

  • Shareholders: Shareholders are the legal owners of the shares of a company. Shareholders can be natural persons or corporate entities. They can also be NRIs or Foreign Nationals or Foreign Entities. Shareholders are the owners of a Company.
  • Directors: Directors of a company are appointed by the shareholders of a company to manage the affairs of a company. Directors are not owners of a company. However, Directors can also be shareholders and shareholders can also be Directors.
  • Articles of Association: The articles of association of a company defines the rights and responsibilities of shareholders and Directors. Articles of Association of a company can restrict the share transfer in a private limited company.

DOCUMENTS REQUIRED FOR TRANSFER OF SHARES

  • Board Resolution
  • ID Proof of Transferor and Transferee: PAN and Aadhaar Card
  • In case of transfer of shares by a company, MOA and AOA
  • Bank Statement

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