Transfer of Shares in India – From 4,999 + GST

Drafting and passing of Board/Shareholder Resolutions for share transfer

Guidance on stamp duty payment and legal formalities under Companies Act, 2013

Ongoing support for partial transfer, multiple shareholder transfers, and post-transfer compliance

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Transfer of Shares in India

A transfer of shares refers to the voluntary transfer of ownership rights in a company from one shareholder to another. It is a critical process that ensures proper updating of a company’s ownership records, transparency in shareholding, and compliance with the Companies Act, 2013.

At Patron Accounting, we assist companies in carrying out smooth share transfers, ensuring that the legal, financial, and regulatory requirements are duly met. Whether it is a transfer between existing shareholders, to new investors, or through succession, our expert team streamlines the process with error-free documentation and timely compliance.

We make sure your company avoids penalties, maintains statutory transparency, and updates its ownership structure seamlessly.

Why is Transfer of Shares Essential?

The transfer of shares plays a crucial role in ensuring smooth changes in company ownership and maintaining legal compliance.

  • Provides a legal method for shareholders to exit or transfer ownership
  • Ensures transparency in ownership records and shareholder rights
  • Strengthens corporate governance with updated statutory registers
  • Builds investor confidence by maintaining credible and updated shareholding structures
  • Prevents penalties, disputes, and regulatory hurdles from improper transfers

Without proper transfer procedures, companies can face compliance issues, shareholder disputes, and legal risks under the Companies Act, 2013.

How Can Transfer of Shares Drive Your Business Growth?

Legal Recognition and Compliance

Ensures ownership changes are legally recognized and compliant with corporate laws.

Enhanced Investor Trust

Clear and updated shareholding records improve trust among investors, partners, and authorities.

Ease of Exit & Investment

Facilitates ease of exit for investors and encourages new investment through transparent transfer procedures.

Avoids Legal Disputes

Minimizes ownership conflicts by providing documented proof of transfer.

Strengthens Governance

Regular updates in shareholder registers strengthen internal corporate governance.

Private Companies Restrictions

Private companies generally restrict share transfers in their Articles of Association. Existing shareholders may have the first right of refusal.

Board Approval

Share transfers require Board Resolution approval in the company’s board meeting.

Execution of Share Transfer Deed

The transfer must be executed in Form SH-4 (duly stamped, dated, and signed).

Submission of Share Certificates

Existing share certificates must be surrendered for endorsement of the transferee’s name.

ROC Filing

If applicable (in case of public companies or specific transfers), forms must be filed with the ROC.

Time Limit

The share transfer deed (Form SH-4) should be delivered to the company within 60 days of execution.

Transfer of Shares in India: A Guide by Patron Accounting

Free Consultation & Assessment

We assess the company’s Articles of Association, shareholder agreements, and compliance requirements.

Document Collection & Verification

Document Collection & Verification

Document Collection & Verification

Drafting and execution of Form SH-4 and Board Resolution for approval of transfer.

Drafting and execution of Form SH-4 and Board Resolution for approval of transfer.

Drafting and execution of Form SH-4 and Board Resolution for approval of transfer.

Statutory Filings with ROC

Filing necessary forms with ROC (if applicable) within statutory timelines.

Completion & Compliance Support

Handover of updated statutory records and continued support for any future share transfers.

Documents Checklist for Transfer of Shares in India

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    Duly executed Share Transfer Deed (Form SH-4)

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    Original share certificate(s)

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    PAN and identity proof of transferor and transferee

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    Board Resolution approving transfer

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    Articles of Association copy (if restrictions apply)

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    Proof of payment of stamp duty

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    Register of Members for update

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    Digital Signature Certificate (if ROC filings required)

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    Consideration/payment proof between parties

Why Choose Patron Accounting for Transfer of Shares in India?

Expert Legal Guidance

Expert Legal Guidance

We ensure compliance with all Companies Act and ROC requirements.
End-to-End Assistance

End-to-End Assistance

From drafting SH-4 to ROC filings, we manage everything.
Fast Processing

Fast Processing

Quick and smooth execution of share transfers without delays.
Error-Free Filing

Error-Free Filing

Every document reviewed carefully to avoid rejections or disputes.
Affordable Pricing

Affordable Pricing

Services start at just ₹1,499 + GST with no hidden costs.
Dedicated Support Team

Dedicated Support Team

Assistance at every stage of the transfer process.

Your one-stop partner for Business Registration

Accounting • Tax • Audit • Compliance

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Transfer of Shares Customised by States and Cities

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Transfer of Shares in Delhi

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Transfer of Shares in Haryana

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Transfer of Shares in Maharashtra

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Transfer of Shares in Mumbai

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Transfer of Shares in Pune

Frequently Asked Questions

Have a look at the answers to the most asked questions.

FAQ Illustration

Yes, the Board of Directors’ approval is mandatory for recording transfers.

No, in private companies share transfer is usually restricted and subject to conditions in the Articles of Association.

Stamp duty is 0.25% of the consideration amount or market value of shares, whichever is higher.

Listed company shares can be transferred via demat system; private companies still use physical Form SH-4.

Not always. For private companies, filing may not be required unless part of specific compliance. Public companies may need reporting.
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