What is Transfer of Shares?
Shareholders are the real owners of the company, and they appoint Directors to manage the affairs of the company. Shares of company held by shareholders are movable property. Transfer of Shares can be done to other person or entity. As the number of shares decides the percentage of ownership by the shareholder, transfer of shares leads to transferring of ownership by a shareholder.
Transfer of shares of a private company is indeed restricted as mentioned in their Articles of Association because of protection of rights of the small group of investors, while shares of the public company can freely participate in transfer of shares.
Provisions relating to Stamp Duty
As per Companies Act, 2013 capability of transfer of shares should be duly stamped, and stamp duty is paid by the seller of the shares. Finally, every company, unless prohibited, shall issue within one-month certificates for transfer of shares after the application for the registration of transfer of shares is received.
At Registration Arena, we are continuously available to help you with transfer of shares. Company Registration in India can be done through Registration Arena in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.