Move ownership between shareholders the legal way.
Transfer of shares is the process of moving ownership of shares from an existing shareholder to another person, whether to onboard an investor, exit a co-founder or reorganise ownership. In a private limited company, share transfers must comply with the restrictions in the Articles of Association, which often give existing shareholders a right of first refusal. The transfer is executed through a duly stamped share transfer deed (Form SH-4), approved by the board, and recorded by updating the register of members and issuing new share certificates. Proper documentation is essential to keep the cap table clean and avoid future disputes.
Shareholders exiting or entering a company, and founders bringing in investors.
Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.
Yes, at 0.015% of the value of shares, paid via share transfer stamps or the online system.
Yes. The board can refuse transfers as permitted by the Articles of Association.
Share transfers are internal but are disclosed in the annual return (MGT-7).
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