&c4=o-color-4&c5=o-color-5)
&c2=rgba(0,0,0,.5)&c4=o-color-4&c5=o-color-5)
&c4=o-color-4&c5=o-color-5)
&c2=rgba(0,0,0,.5)&c4=o-color-4&c5=o-color-5)
Breif
Transfer of shares is the process by which ownership of shares is moved from one person to another, usually through sale or gift.
Overview
The transfer of shares involves proper documentation, compliance with company regulations, and approval by the board of directors. Once the process is completed, the transferee becomes the legal owner and enjoys all rights attached to the shares.
Process
Step 1 - Agreement between Parties – The transferor and transferee agree to the transfer of shares.
Step 2 - Execution of Share Transfer Deed – A duly filled and signed Share Transfer Deed (Form SH-4) is prepared.
Step 3 –Submission to the Company – The deed along with the share certificate is submitted to the company.
Step 4 – Verification by the Company- The company verifies documents and compliance with its Articles of Association.
Step 5 – Board Approval – The Board of Directors approves the transfer through a resolution.
Step 6 – Updating Register of Members – The company records the transferee as the new shareholder in the Register of Members.
Step 7 – Issuance of New Share Certificate – A new share certificate is issued in the name of the transferee.
Checklist
Details & Documents Required for Transfer of share
1. Share Transfer Deed (Form SH-4) - Duly signed by transferor and transferee
2. Original Share Certificate - Issued to the transferor
3. Board Resolution/Consent – If required as per company’s Articles of Association
4. KYC Documents of Transferee – Identity and address proof (e.g., PAN, Aadhar, passport)
5. No Objection Certificate (NOC) – If the company or other shareholders require it.
6. Application for Transfer – Request letter from the transferor and transferee (optional in some companies)
Time Taken
Total Time: Approximately 7–10 working days from the date of receipt of all required documents.
- DSC Verification & Preparation: 1 day
- Preparation of Share Transfer Deed (Form SH-4) & supporting documents: 1–2 days
- Submission to the Company & Board Approval: 2–3 days
- Updating Register of Members & Issuance of New Share Certificate: 3-5 days
Deliverable
The following deliverables are included in the Biz Silver Plan. Deliverables for other packages may vary accordingly:
- Duly Executed Share Transfer Deed (Form SH-4) – Signed by both transferor and transferee.
- Acknowledgment/Board Resolution – Approval of the transfer by the company’s Board of Directors.
- Updated Register of Members – The company records the transferee as the new shareholder.
- New Share Certificate – Issued in the name of the transferee.
- Stamp Duty Receipt – Proof of payment of applicable stamp duty on the transfer deed.
Why Choose Us
Bizeneed makes the process of transferring shares simple, fast, and completely hassle-free. With expert guidance at every step, we ensure that all legal and procedural requirements are accurately completed, saving you time and avoiding errors. Our team handles documentation, board approvals, and filings efficiently, giving you peace of mind. Trusted by hundreds of entrepreneurs across India, Bizeneed provides transparent, reliable, and affordable services, making share transfers smooth and stress-free for businesses of all sizes.
FAQs
Transfer of shares is the process of transferring ownership of shares from one shareholder to another, either through sale, gift, or inheritance.
Any existing shareholder of a company can transfer their shares, subject to the company’s Articles of Association and legal compliance.
No, private companies may have restrictions in their Articles of Association, while public companies usually allow free transfer.
No, only when a shareholder wants to sell, gift, or otherwise transfer their shares.
Yes, but it may require compliance with RBI regulations if the transferee is a foreign entity.
It involves executing a Share Transfer Deed (Form SH-4), submitting it to the company, obtaining board approval, and updating the Register of Members.
Typically 7–10 working days, depending on company procedures and document verification.
Yes, the Board of Directors must approve the transfer and record it in their resolution.
Yes, the company provides updates once the transfer deed is submitted and the certificate is issued.
Yes, stamp duty must be paid on the share transfer deed as per state laws.
Share Transfer Deed (Form SH-4), original share certificate, KYC of transferee, board approval, and stamp duty receipt.
They may require NOC from existing shareholders if restricted by Articles of Association.
Yes, PAN and address proof are mandatory for proper record-keeping.
Some companies allow online submission, but most require physical documents for legal compliance.
Yes, the company issues a new share certificate in the name of the transferee.
Shares are sold from one shareholder to another for a consideration (money).
Shares can be transferred as a gift without monetary consideration.
Yes, in case of death, shares can be transferred to legal heirs following proper documentation.
Yes, private companies may require pre-approval from existing shareholders.
Generally, no. Public company shares are freely transferable unless restricted by SEBI rules or agreements.
The transferee may not be legally recognized as a shareholder and lose voting or dividend rights.
Yes, some companies may charge penalties as per Articles of Association.
No, once approved and recorded in the Register of Members, the transfer is legally binding.
Usually, the transferor or as agreed between parties, depending on company policy.
Yes, assistance can be provided for documentation, compliance, and updating records.