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Share Transfer of a Company
There may be the cases where new members coming in the company or existing shareholders going out from the Company & there may also be the transfer of shares from one member to another, in all these cases Share transfer needs to be done as per the defined procedure. We at TaxRodo help you to easily perform all the procedures:
➦ Review the entire Prior Business Process & Shareholding Pattern
We at TaxRodo will review your entire prior business process & Shareholding Pattern of the Company to implement the transfer procedures.
➦ Preparation of documents for the share transfer
Our team of Professionals will prepare all the share transfer documents & do the filing procedures.
➦ Share Certificates after the Transfer
Share Certificates after the share transfer will be provided to the Company.
Note down the Required Documents
✍ PAN of new shareholder.
✍ Proof of Identity like Passport, Aadhaar, Driving License etc.
✍ Proof of Address like Aadhaar, Bank Statement, Credit Card Statement etc.
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Know Share Transfer
The Ownership of 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 effecting a share transfer. TaxRodo can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.
Where any default is made in complying with the provisions related to transfer of shares, the company shall be punishable with fine which shall not be less than ₹ 25,000/- but which may extend to ₹ 5,00,000/- and every officer of the company who is in default shall be punishable with fine which shall not be less than ₹ 10,000/- but which may extend to ₹ 1,00,000/-.
1. Is there any Time Period for deposit of Instrument for Transfer?
Yes, An instrument of transfer of shares i.e. Form SH.4 with the date of its execution specified thereon shall be delivered to the company within sixty (60) days from the date of such execution by or on behalf of the transferor and by or on behalf of the transferee.
2. What is the Time limit for issue of certificate on transfer?
Every company, unless prohibited by any provision of law or of any order of any Court, Tribunal or other authority, shall, within One month deliver, the certificates of all shares transferred after the application for the registration of the transfer of any such shares, debentures or debenture stock received.
3. What is the Time Limit for Refusal of registration of Transfer?
Power of refusal to register transfer of shares is to be exercised by the company within thirty (30) days from the date on which the instrument of transfer or the intimation of transfer, as the case may be is delivered to the company.