Share transfer procedure

Hi Dhara,

In the case of private company, shares can be transferred only between the existing members.

Use Share Transfer Form SH-4 which is attached herewith.

Point to note while filling share transfer form

 The signature of transferor should tally with signature records of the company.(Very important in case of slight mismatch the company may reject the application). It is advisable to get the signature of transferror attested by bank manager/gazetted officer .

Attachments along with share transfer form

1. One Self attested copy  Proof of identity of transferee like PAN Card, Driving License, Passport.
2. One Self attested copy of Proof of address of transferee like Voters Id, Driving License, Passport.

3. Original share certificate

Stamp Duty payable on transfer of shares is 0.25 paise for every Rs. 100 consideration. In other words 0.25% of total consideration value. 

Mode of payament of stamp duty is by affixing share transfer stamps. In the case of states like Karnataka, Maharashtra franking can be done. If the stamp duty involved is large separate blank papers can be used for affixing share transfer stamps.

Procedure for transfer

1. Send the share transfer form duly signed by the transferor and transferee, duly stamped along with all attachments to the company.

2. The company on receipt of the application found the documents to be proper and in order shall deliver the share certificate to the transferee within 1 month of the receipt of the application for share transfer.

3. The company shall there after update the register of members. 

The process is completed.

Regards,

Arjun Rajagopal

Thank u Mr. Arjun 

Do i need to make the stamp duty payment online on the GRASS website? Coz i have heard online procedure have been stopped and now physically needs to do the procedure. kindly guide on it

Thank u Mr. Arjun 

Do i need to make the stamp duty payment online on the GRASS website? Coz i have heard online procedure have been stopped and now physically needs to do the procedure. kindly guide on it