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Know more about Share Transfer Process
In a Private Limited Company, the shares are issued in physical form. Hence, the transfer of shares is done physically. The shares of a private limited company can only be transferred to a small group of persons such as friends or family members as a private limited company is a closely held company, as a result, the shares cannot be transferred to the public.
Wisefilings is here to guide you with the complete procedure for the transfer of shares in a private Limited Company. It will keep you compliant and away from the penalties levied by MCA. Be Wise Be Compliant!
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Required Documents for Share Transfer
- Share Certificate
- Pan of Transferor
- PAN of Transferee
- Share Transfer form
- Collecting the Documents
- Execution of SH-4
- Payment of Share Transfer Stamp duty
- Verification of Details and stamp duty by Authorized person from Company
- Passing of Board Resolution by Directors for approval
- Entering the New Members name in Register of Members
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Yes, you can transfer even the part of your total shareholding.
Shares can be transferred even at premium then face value of Shares.
The instrument for Share Transfer is SH-4 which is a share transfer Form.
The present stamp duty rate for transfer of share is 25 paise for every one hundred rupees of the value of the share or part thereof.
Minor cannot hold shares directly; minor can hold the shares through his/her guardian.
Original Share Certificate along with Share Transfer Form duly stamped is required.
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