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Transfer of Shares Online

Transfer of shares means the transfer of ownership of the shares from one person to another. Transfer of shares is effected by removing the name of the existing shareholder from the register of members and by inserting the name of the transferee in place of the transferor in the register of members. Shares of a public company are freely transferable whereas there are certain restrictions on the transfer of shares of a private company.

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How to do Transfer of Shares of a Company
Call CA helps you to tranfer the shares in three easy steps.
Step 1: Understanding the concept

One of our team member helps you to understand the concept and the documents to be required to tranfer the shares.

Step 2: Submission of Documents

the requisite documents required to be submitted and we draft supporting documents required.

Step 3: Completion

We help you in the complete process and complete the procedure of transfer of shares.

Outline 

Transferability of shares in a privately held company is governed by the Articles which is a document that lays down the rules and regulations regarding share capital transfer, transmission, board of directors, general meetings and winding up, among others.Section 2(68) of the Companies Act 2013 provides that the Articles of a private company shall restrict the right to transfer the company’s shares. This restriction is binding upon the company and members thereof. In other words, if the restriction is not mentioned in the Articles and is enforced by way of a private agreement between shareholders, it is not binding either on the company or on the shareholders.

Non Applicability of Restriction on Transfer

It is important to note that the restriction on transfer is not applicable in the following cases:
  1. Where the member transfers the shares to his/her representative(s).
  2. Where the shares have been devolved to the heirs in the event of death of a shareholder.
  3. Where shares are proposed to be allotted on a rights basis and the existing shareholders renounce their shares, these shares will be allotted to the renouncees.

How to transfer shares of a Private Limited Company

  •  Obtain share transfer deed in the prescribed format.
  •  Execute the share transfer deed duly signed by the Transferor and Transferee.
  •  Stamp the share transfer deed as per the Indian Stamp Act and Stamp Duty Notification in force in the State.
  •  Have a witness sign the share transfer deed with his/her signature, name and address.
  •  Attach the share certificate or allotment letter with the transfer deed and deliver the same to the Company.
  • The company must process the documents and if approved, issue new share certificate in the name of the transferee.

Time Limit For the Issuing of Shares Transfer Certificate


One has to deliver all the share transfer certificates by the company within a period of one month from the date of receipt of the share transfer agreement or the share transfer certificate by the company. Unless the company can’t deliver due to an order of the Court or instruction by other authorities.

Transfer Of Partly Paid Up Shares

It is duty of company that if  partly paid up shares are received for transfer then company shall give notice to the transferee in form SH-5 and give 2 (Two) weeks’ time for objection, if any. Notice is not required if the partly paid shares are lodged by transferee.

Take NOC from transferee, As per Rule 11(3) if NOC is not received from the transferee then transfer can’t be recorded. But the section doesn’t say that if the transferee doesn’t reply within 2 weeks, it may be presumed that he has no objection. Liability of payment of balance amount lies with transferee.

Why Call CA

We help you in transfer of shares  with complete online support. You need not to step outside your home and we guide you to enter into the business world hasselfree. At Call CA , our team helps you to understand the concept and documentation require in transferring the shares.  we will give you a copy of your digital documents in 2-3 Business working days by email or Post after completion of process.

FAQ's

How do private companies issue shares?

In case of private company either it can issue shares to its existing shareholders by way of rights issue or by way of giving them bonus shares or it can issue securities through private placements.

Which companies share Cannot be transferred?

A Company having share capital:- The Company shall not register transfer of securities of the Company or member's interest in the Company other than beneficial owners without a proper instrument of transfer within a period of 60 days from the date of execution.

What is the difference between transfer and transmission of shares?

Transfer of shares refers to the transfer of title to shares, voluntarily, by one party to another. Stamp duty is involved under transfer and payable on the market value of shares. Transmission of shares means the transfer of title to shares by the operation of law.

Which of the following circumstances cause transmission of shares?

Transmission of shares takes place, when the registered shareholder dies; or when he is adjudicated an insolvent; or where the shareholder is a company it goes into liquidation. On the death of a shareholder, his shares vest in his legal representative.

What is forged transfer?

Forged Transfer An instrument of transfer of shares on which the signature of the transferor is forged is called a forged instrument, and any transfer based on such instrument is called a forged transfer.

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