Share Transfer — Moving Ownership of Shares Between Parties Correctly.
Transferring shares in a private limited company requires a stamped SH-4 transfer deed, board approval, and Register of Members update. We ensure the transfer is executed, approved, and recorded within statutory timelines.
Contact UsA share transfer is a voluntary transaction by which a shareholder (the transferor) conveys ownership of shares to another party (the transferee) by executing a Share Transfer Deed in the prescribed Form SH-4. Unlike public companies whose shares are traded freely, shares in a private limited company are subject to restrictions — the Articles of Association typically require board approval before a transfer can be registered and may give existing shareholders a right of first refusal (pre-emption rights) over shares being sold.
Form SH-4 must be executed by both the transferor and transferee, stamped at 0.25% of the transfer consideration or the value of shares, whichever is higher, under the Indian Stamp Act, and submitted to the company. The board then considers the transfer at a board meeting — approves, rejects, or defers within statutory timelines — and if approved, updates the Register of Members under Section 88 of the Companies Act to record the transferee as the new shareholder.
Once the Register of Members is updated, the existing share certificate in the transferor's name must be cancelled and a new share certificate issued to the transferee within 1 month. For shares in dematerialised form, the transfer process is routed through the depository system rather than a physical SH-4, though the board approval and Register update requirements still apply. We manage the full process from SH-4 execution to the issuance of the new certificate.
Our Share Transfer Services
SH-4 Transfer Deed Execution
Drafting and executing Form SH-4 in compliance with the Companies Act and applicable stamp duty requirements.
Stamp Duty Computation
Calculating correct stamp duty on the transfer instrument as per the rate applicable to the transfer consideration.
AOA Restriction Review
Reviewing AOA pre-emption and approval clauses to confirm compliance before proceeding with the transfer.
Board Approval Coordination
Managing the board meeting at which the share transfer is considered and approved by directors.
Register of Members Update
Updating the company's Register of Members under Section 88 to reflect the new shareholder after approval.
Share Certificate Re-Issue
Coordinating cancellation of the existing certificate and issuance of a new share certificate to the transferee.
Transmission of Shares
Managing transmission of shares to legal heirs or nominees on death or insolvency without a transfer deed.
Demat Transfer Assistance
Supporting transfer of shares held in dematerialised form through the depository participant system.
Our Process
SH-4 & Stamp Duty Verification
We verify that Form SH-4 is correctly executed, dated, and that stamp duty is paid on the transfer consideration.
AOA Restriction Check
Pre-emption rights and board approval requirements in the AOA are reviewed and complied with before proceeding.
Board Approval
Board meeting held to approve the transfer; minutes prepared and the transferee approved as new member.
Register of Members Update
Register of Members updated with the new shareholding details post board approval.
New Share Certificate
Existing certificate cancelled and a new share certificate issued to the transferee within the 1-month statutory period.
Why It Matters
Frequently Asked Questions
Need to transfer shares in your company?
We'll execute the SH-4, check AOA restrictions, coordinate board approval, and update the Register of Members and share certificate within statutory timelines.
