SHARE CAPITAL

Shares Transfer

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Overview

As your private limited company evolves, navigating changes in ownership becomes crucial. Transferring shares allows you to welcome new investors, reward deserving employees, or restructure your equity distribution. Company Avenue Advisory (CAA) empowers you to manage this process smoothly and legally, ensuring clear understanding and compliance.
Eligibility:

Any shareholder holding an approved Director Identification Number (DIN) in a private limited company can transfer their shares, provided:

  • The transfer complies with the Articles of Association of the company.
  • There are no legal restrictions or encumbrances on the shares being transferred.
Unlocking Potential:

Share transfer offers strategic advantages for your company:

• Capital Injection: Attract new investors and inject fresh capital to fuel expansion, new ventures, or operational improvements.

• Talent Retention: Offer employee stock options as incentives, attracting and retaining top talent for long-term commitment.

• Succession Planning: Enable smooth ownership transition within the founding team or family, ensuring business continuity and stability.

• Enhanced Financial Flexibility: Create a liquid market for company shares, potentially attracting greater investment interest and liquidity.

Document Checklist:

Ensure you have all necessary documents readily available to avoid delays:

• Duly signed Share Transfer Deed
• Share certificates of the shares being transferred
• PAN cards of both transferor and transferee
• Board Resolution approving the transfer (if applicable)
• Proof of payment of stamp duty (varies depending on the state)
• Payment challan for filing fees
• Additional documents may be required depending on the specific state and ROC requirements.

A Defined Roadmap:

Share transfer follows a specific legal procedure outlined by the Companies Act, 2013. CAA guides you through every step, minimizing disruptions and ensuring legal compliance:

• Share Transfer Deed: Both transferor and transferee must sign a duly drafted Share Transfer Deed, specifying the number of shares, transfer price, and delivery date.

• Company Intimation: Inform the company about the intended transfer by submitting the Share Transfer Deed, share certificates, and relevant documents.

• Board Approval: The Board of Directors reviews the transfer and approves it through a Board Resolution, unless the Articles of Association grant automatic transfer rights.

• Form SH-4 Filing: Within 60 days of Board approval, file Form SH-4 with the Registrar of Companies (ROC) along with required documents and fees.

• Company Register Update: Upon ROC approval, the company updates its registers to reflect the share transfer, officially recognizing the new ownership structure.

How it works

Experience effortless financial management with our streamlined process. Simply onboard, submit documents securely, and ensuring a seamless and efficient accounting partnership.
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Provide Necessary Documents

Submit all necessary documents required for company registration.

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Ultimate Startup Package

Our Ultimate Startup Package Service Include

Rs.21999/

/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Ultimate Small Business Package

Our Ultimate Small Business Package Service Include

Rs.23999/

/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Ultimate Enterprise Package

Our Ultimate Enterprise Package Service Include

Rs.25999/

/Including Govt. Fees

Dapibus sodales torquent vel hac vulputate ornare nam, magna rutrum sagittis libero nostra.
*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Common Questions

Most Popular Questions

Shares transfer refers to the process of transferring ownership of shares from one shareholder to another, enabling the buyer to acquire ownership rights and responsibilities in the company.

Reasons may include selling shares for liquidity, exiting the company, restructuring ownership, fulfilling regulatory requirements, or accommodating new investors.

The procedure typically involves executing a share transfer deed, obtaining board approval, obtaining shareholder approval (if required), updating company records, and filing necessary forms with the RoC.

Yes, shares can be transferred freely, subject to any restrictions mentioned in the Articles of Association (AOA) of the company and compliance with legal requirements.

Yes, restrictions may include pre-emption rights, lock-in periods, approval requirements, and compliance with Securities and Exchange Board of India (SEBI) regulations, if applicable.

You may have legal recourse if the company's refusal is not based on valid grounds. Consult with a corporate lawyer for guidance on specific circumstances.

Documents such as share transfer deed, share certificate(s), board resolution, Form SH-4, and necessary forms for filing with the RoC are required.

The process must be completed within a specified timeline, as per the requirements of the Companies Act, 2013, and any applicable regulations.

Non-compliance may lead to disputes, legal challenges, rejection of transfer by the company, or penalties imposed by regulatory authorities.

Yes, Avenue Advisory provides expert assistance for transferring shares, including drafting of transfer deeds, preparation of documents, filing with the RoC, and compliance monitoring.

Avenue Advisory ensures compliance with the shares transfer procedure by guiding clients through the process, preparing accurate documents, and liaising with the RoC for timely approvals.

Absolutely! CAA offers comprehensive support, from drafting the Share Transfer Deed and Board Resolution to filing forms with the ROC, managing company communication, and guiding on potential tax implications.

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4 Seamless Steps to Your Success

Get what you need with Company Avenue Advisory's hassle-free process. Follow these four simple steps and let us handle the rest:
STEP 1: Get Started (FREE!)

Share your needs and questions through our Quick Enquiry Form. Connect with a friendly advisor for a personalized call within 24 hours. Receive a clear quote without any obligation - it's all about understanding your goals!

STEP 2: Find Your Perfect Path

Our dedicated advisors listen to your needs and help you explore options. We make things clear and answer any questions you have along the way. Get expert guidance and feel confident about your next steps.

STEP 3: Get it Done Simply

Access our streamlined platform for easy document management. We provide a simple questionnaire and checklist to ensure everything's covered. Relax knowing we're here to guide you every step of the way.

STEP 4: Pay Actual Fee and Enjoy Peace of Mind

Receive a transparent and fixed fee before you proceed – no surprises! Focus on achieving your goals knowing everything is handled efficiently and ethically. Trust our expertise and enjoy the journey towards your success.

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