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Nominee Director Filings
Transfer of Shares refers to the process of voluntarily transferring ownership of shares from one individual or entity to another. Governed by the Companies Act, 2013, it involves compliance with legal formalities and proper documentation to ensure transparency and record-keeping. The process is most common in private limited companies and public companies with dematerialized shares.
The transfer of shares ensures the legal transfer of ownership in a company, typically initiated by a seller and buyer or through inheritance. For private companies, share transfer is governed by the Articles of Association (AOA), while public companies follow a simplified process due to the dematerialization of shares.
Important
1. Ownership Transition: Facilitates smooth transfer of ownership between individuals or entities.
2. Legal Compliance: Ensures adherence to the Companies Act and avoids disputes.
3. Record Keeping: Updates the company’s records and statutory registers.
4. Capital Restructuring: Allows businesses to realign their ownership structure.
5. Stakeholder Transparency: Maintains trust among shareholders and regulators.
Applicability
1. Private Limited Companies : Require adherence to AOA and approval from the Board of Directors.
2. Public Limited Companies : Shares can be freely transferred without board approval.
3. Listed Companies : Shares are transferred electronically through depositories (NSDL/CDSL).
4. Unlisted Companies : Require physical documentation and registration with the company.
Documents Required
Features
Features & Benefits of Nominee Director Filings
Stamp Duty Payment
Board Approval for Private Companies
Electronic Transfers
Register Updates
Nominee Director Filings
Penalty for Non-Compliance
Free Transferability
Inheritance Transfers
Corporate Governance
Alignment with the Companies Act, 2013
Comparison with Related Services
| Feature | Share Transfer | Share Allotment | Change in Share Capital |
|---|---|---|---|
| Objective | Transfer ownership of shares | Issue new shares to members | Alter share capital structure |
| Regulatory Body | MCA, ROC | MCA, ROC | MCA, ROC |
| Filing Frequency | Event-based Forms Required | Event-based Forms Required | Event-based Forms Required |
| Forms Required | SH-4 | PAS-3 | SH-4 |
| Penalty for Non-Compliance | High | High | High |
Frequently Asked Questions
What is Form SH-4?
Form SH-4 is a share transfer deed used for transferring shares in a private or public company.
What is the stamp duty on share transfer?
Stamp duty is 0.25% of the consideration value or market value of the shares, whichever is higher.
Can shares in a private company be freely transferred?
No, private companies often have restrictions on share transfers in their Articles of Association (AOA).
Is board approval necessary for share transfers?
Yes, board approval is required for private companies, but not for public companies.
How are dematerialized shares transferred?
Dematerialized shares are transferred electronically through depositories like NSDL or CDSL.
What happens if a share transfer is not registered?
If not registered, the transferee does not gain legal ownership of the shares, and the transfer may be considered invalid.
Related Services
SH-4 Drafting & Execution
Board Resolution for Transfers
Stamp Duty Payment Support
ROC Filing (If Required)
Member Register Updates
New Share Certificate Issuance
AOA Transfer Restriction Advisory
Dematerialized Share Transfers
Share Valuation for Stamp Duty
Share Transaction Compliance Audit
DSC Assistance
Ownership Change Governance