Nexgenca

Office Address

1-10-74/71 VV Inspire,S.P., Road, Above Wood Lands, Begumpet, Hyderabad, Secunderabad, Telangana, India-500016

Phone Number

9493908042

Email Address

nexgencatechnologies@gmail.com

support@nexgenca.com

Share Transfer

Share Transfer

 

Shares represent ownership in a company. Sometimes shareholders may wish to transfer their shares to new or existing members – due to investment changes, family arrangements, or business restructuring.

In a Private Limited Company, share transfer is slightly restricted to protect the interest of existing shareholders, but it is very much possible by following the proper process under the Companies Act, 2013.

When is Share Transfer Required?

  • Existing shareholder wants to sell/transfer shares

  • Bringing in a new investor or partner

  • Transfer due to inheritance, gift, or family arrangement

  • Restructuring ownership between promoters

  • Exit of a shareholder

Documents Required for Share Transfer

  1. Share Transfer Deed (Form SH-4) – Duly stamped & signed

  2. Original Share Certificates

  3. Consent of Transferor (Seller) & Transferee (Buyer)

  4. Board Resolution approving the transfer

  5. PAN & Aadhaar of transferee (for records)

  6. Consideration proof (if applicable)

Step-by-Step Process of Share Transfer

  1. Notice to Company – Transferor gives written request to transfer shares

  2. Board Meeting – Company considers the request

  3. Execution of SH-4 (Share Transfer Deed) – Signed by both parties & properly stamped

  4. Submission to Company – SH-4 and original share certificate submitted within 60 days

  5. Board Approval – Directors approve transfer & record in the Register of Members

  6. Issuance of New Share Certificate – Company issues share certificate to new shareholder within 30 days of transfer approval

Due Dates & Penalties

Compliance Due Date Penalty if Not Done
SH-4 Submission Within 60 days of execution Transfer not valid
Issue of New Share Certificate Within 30 days of approval ₹25,000 on company + ₹10,000 per officer in default
Stamp Duty on SH-4 As per State Stamp Act (generally 0.25% of consideration) Penalty = 10x of duty

Why Choose Us?

  • Drafting & execution of SH-4 transfer deeds

  • Assistance in stamp duty payment

  • End-to-end compliance including Board Resolutions & Registers update

  • Quick completion in 7–10 days

  • Ensure 100% legal validity & avoid penalties

Transferring shares may look simple, but even a small mistake (like missing stamp duty or wrong deed execution) can make it invalid. Our experts ensure a smooth & hassle-free transfer.

No, transfer is restricted. First, shares must be offered to existing shareholders (Right of First Refusal). If they decline, they can be transferred to outsiders.

SH-4 is the Share Transfer Deed, a mandatory form under Companies Act, 2013 for transferring shares.

Yes, but proper documentation, SH-4, and stamp duty are still required.

Yes, as per state laws, even if shares are transferred as a gift.

The Board of Directors of the company. If they reject, they must state valid reasons.

Normally 7–15 working days, depending on documents and approvals.

No separate MCA form is required. Only company records (Register of Members & Share Certificates) need updating.

No, only persons aged 18+ years can legally own shares.