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Rs. 1999 (excl. Govt fees and taxes)
By transfer of shares it means transferring the title of the shares by one party to the other voluntarily.
The directors of a company are chosen by the shareholders to run its day-to-day proceedings. This infers that in spite of the directors managing the daily affairs of the company, the shareholders are the ultimate owners of the company. The ownership of a company can be transferred by transferring the shares of the company from one name to the other.
The transfer of shares in a private company has a different procedure than that of a public company.
The Article of Association generally guides a Private Limited Company. If the transfer of shares violates the AOA or doesn’t consider it, it becomes void.
The provision for the transfer of shares in a private company is a fundamental characteristic of the securities of a company. In spite of some limitations on the transfer of shares in a private company as per the AOA, the securities of a company are generally freely transferable.
We at MyEfilings would be glad to help you with the transfer of shares in a private company at the most reasonable price.
Based on your requirements plan shall be quoted accordingly
In a private limited company, a written notice about his/her intent on the transferof shares has to be provided by the transferor to the company.
The company shall inform all the members about the availability of the shares. The notice will also mention the price of the shares along with the time limit within which they can communicate their option to purchase the shares. If no member comes up to buy the shares then the shares become available for purchase to an outsider, wherein the company has no choice but to accept the transfer.
The share transfer deed, must be duly filled by both the parties i.e. the transfer or and the transferee. The deed needs to be duly stamped, dated, adequately valued, and cancelled for execution.
The appropriate allotment letter or share certificate has to be attached with the share transfer deed and within 60 days from the date of execution, it must be sent to the company either by the transferor the transferee of the shares.
Once the share transfer deed is delivered to the company, the board of directors shall consider the same. If the documentation is found to be in order, the board will record the transfer by passing a resolution.
The company will within one month of passing of board resolution issue share certificate in the favour of transferee by endorsing the name of transferee behind the share certificates.
The seller is responsible for the payment of stamp duty in case of the transfer of
shares of a company.
No, there is no need to pay stamp duty on the transfer of shares in the Demat Form.
Yes, you need to pay a stamp duty on transfer of shares as a gift.
The stamp duty to be paid on transfer of shares varies from state to state.