Manager - Finance & Accounts
58384 Points
Joined June 2010
Selling a private limited company is quite a process and involves several legal and procedural steps. Here are some quick points to keep in mind if you want to sell your company:
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Valuation: Get a proper valuation of your company to decide on the sale price.
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Due Diligence: The buyer will likely conduct due diligence on your company’s finances, legal status, compliances, and liabilities.
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Share Transfer: Selling a private limited company usually means transferring shares to the buyer. This involves:
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Drafting a Share Purchase Agreement (SPA).
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Getting approval from other shareholders (if required).
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Updating the company’s Register of Members.
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Compliance: File necessary forms with the Registrar of Companies (ROC), such as SH-4 (for share transfer) and MGT-7 (annual return).
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Tax Implications: Consider capital gains tax and other tax implications on the sale.
If you want, I can guide you step-by-step or provide templates for agreements.
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