Transfer of Shares
Transfer of Shares
Share transfer is the most common way to change ownership in a company. Whether it’s onboarding a new investor, restructuring ownership among existing shareholders or planning an exit, the process must follow the Companies Act, the company’s Articles and proper documentation. Clean paperwork ensures the transfer is legally valid, dispute-free and correctly reflected in the company’s statutory records.
What We Assist With
• Reviewing the Articles and eligibility for share transfer
• Drafting share transfer deeds and supporting documents
• Preparing Board resolutions and updating the Register of Members
• Filing necessary forms with MCA (if applicable)
• Issuing new share certificates and cancelling old ones
• Guidance on stamp duty payment and valuation (if required)
• Ensuring full compliance and record updates for smooth ownership transition
Why Companies Need Proper Share Transfer
• Bringing in new shareholders
• Internal restructuring among founders or family members
• Partial or complete exit of existing investors
• Compliance during mergers, settlements or reorganisations
• Maintaining clean cap tables for future funding
Frequently Asked Questions
Private Limited Companies usually have restrictions in their Articles (ROFR, pre-approval, etc.). Public Companies allow free transfer unless restricted by law.
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A stamped and executed Share Transfer Deed (Form SH-4), share certificates, Board approval and updated registers.
Yes. Stamp duty must be paid on the transfer deed as per state rates—usually based on the consideration amount.
For regular transfers, no. Only the company updates its internal records. MCA filings apply in special situations like transfer to non-residents or changes that affect paid-up capital.
Usually 3–7 working days once documents and approvals are in place.