Share Transfer
Get Comprehensive Support and Assistance for Company Share Transfer in India
At My Biz Development, we facilitate the company share transfer in India for Private Limited Companies. Our expert team provide comprehensive support and ensure that every step is executed as per regulatory requirements.
What is Company Share Transfer?
A company share transfer refers to the process by which shares of a company are transferred from one person to another. Share transfers can take place for a variety of reasons, including selling shares, gifting them, or passing them on to heirs. In India, the transfer of shares is governed by the Companies Act, 2013, and the company’s articles of association, which lay out the rules and conditions for the transfer.
Types of share transfer
In India, share transfers can be classified into two main types:
1. Transfer of Shares in Private Limited Companies:
Involves the transfer of shares from one individual to another, subject to approval by the company’s board and compliance with the Articles of Association (AoA).
2. Transfer of Shares in Public Limited Companies:
Shares are traded on stock exchanges, and the transfer process is regulated by the Securities and Exchange Board of India (SEBI).
Process of Transfer of Shares of a Company
1. Check the Articles of Association:
Before initiating the transfer, it is essential to review the company’s Articles of Association (AOA). The AOA may specify certain restrictions or approval requirements for transferring shares.
2. Prepare the Share Transfer Deed:
The transferor (current shareholder) and transferee (new shareholder) must complete a Share Transfer Deed, which is a legal document stating the intention to transfer shares. The deed must be signed by both parties.
3. Payment of Stamp Duty:
The Share Transfer Deed must be stamped according to the stamp duty laws of the state in which the company is registered. This is an important legal requirement and must be paid before submitting the deed for registration.
4. Submission to the Company:
After the deed is stamped, the transferor submits the Share Transfer Deed, along with the share certificates, to the company for approval. The company’s board of directors will review the transfer.
5. Board Meeting and Approval:
The board of directors will meet and discuss the transfer. If everything is in order, the board will approve the transfer of shares.
6. Update Share Register:
Once the transfer is approved, the company will update its Share Register to reflect the new shareholder.
7. Final Notification:
The transferor is informed about the successful transfer, and the transferee becomes the legal owner of the shares.
Documents required for transfer of shares in India
In India, transferring shares in a private limited company involves several legal formalities and documentation. Here are the common documents required for the transfer of shares in India:
1. Share Transfer Deed (Form SH-4)
The form must be signed by both the transferor (the person selling the shares) and the transferee (the person buying the shares). It must be executed on a stamp paper as per the Stamp Act of India (the stamp duty varies from state to state).
2. Board Resolution for Share Transfer
A board resolution needs to be passed by the Board of Directors of the company approving the transfer of shares. This ensures the transfer is in accordance with the company’s Articles of Association (AoA) and that the company consents to the transaction.
3. Share Certificate(s)
The original share certificate(s) representing the shares being transferred must be surrendered along with the share transfer deed.
4. Identity Proof and Address Proof of the Transferor and Transferee
Copies of valid identity proof (such as Aadhar card, passport, voter ID, or PAN card) and address proof (like a utility bill, bank statement, etc.) of both the transferor and the transferee are required for record-keeping and compliance purposes.
5. PAN Cards of Transferor and Transferee
Both the transferor and transferee must provide a copy of their PAN (Permanent Account Number) cards, as this is a mandatory requirement under Indian tax laws.
6. Proof of Payment of Stamp Duty
The stamp duty applicable on the transfer of shares should be paid, and the transfer deed should be stamped accordingly. The rate of stamp duty varies depending on the state in which the transfer occurs.
7. Letter of Transfer (Optional)
In some cases, a letter from the transferor may be required stating that they are transferring the shares to the transferee, along with any other relevant details.
8. Board Resolution for Issuance of New Share Certificates
After the share transfer is approved, a resolution may be passed by the board to issue new share certificates in the name of the transferee.
9. Company’s Articles of Association (AoA)
The Articles of Association may contain specific provisions regarding the transfer of shares (e.g., restrictions on transfer to third parties, right of first refusal, etc.). These must be checked to ensure compliance with internal company regulations.
10. Form MGT-7 (Annual Return)
After the share transfer, the company must file an updated annual return (Form MGT-7) with the Registrar of Companies (RoC) to reflect the changes in the shareholding structure.
11. Form DIR-12 (if required)
In case the transfer involves changes in the director’s shareholding (if the transferee becomes a director or if a director transfers shares), Form DIR-12 may need to be filed with the Registrar of Companies.
My Biz Development: Your Reliable Companion in Simplifying Share Transfers
At My Biz Development, we provide comprehensive assistance with the share transfer process. Our experts will make it quick and easy for you to navigate the complexities of company regulations. From reviewing AOA to stamping share transfer deed, our experts will guide and assist you through each step Connect with us to get comprehensive assistance for company share transfers in India.
Our Charges For Share Transfer Starts from Rs 4,900/-
Brand and Logo Trademark Resgistration
Having a trademark, it prevents others from using the products or services without the permission of the trademark owner.
In India, the trademarks are registered by the Ministry of Commerce and Industry, Government of India. Trademarks are registered under the Trademark Act, 1999. It provides the trademark owner to sue for damages when infringements of trademarks occur. Once the trademark is applied by filing the trademark application with the Intellectual Property of India, the applicant can use the TM symbol and ® can be used once the trademark gets registered and the registration will be valid for a period of 10 years.
Trademark Registration Process:
At MYDBIZ, the process for registration of the company brand name and logo begins with a trademark search. We can help you conduct a trademark search using the Government company name search tool to find marks across classes. This tool can also be used to find identical or similar trademarks under the same class. Once the company brand name search is completed, you will have to determine whether to proceed with the trademark application based on the details of identical or similar trademark applications already filed with the Government.
In the majority of the cases where the mark is unique, on filing the trademark application, the Examiner would verify all details and approve the publishing of the mark in the Trademarks Journal. When the mark is published, any person or entity would have the opportunity to oppose the registration of the mark. If the mark is not opposed, then the trademark registration certificate will be issued to the applicant with a validity of 10 years.
In case there are identical brand name, then the process for registration could be lengthy and costly which involves various legal procedures and hearings. If there are similar marks, then the process could include objections and hearings, which is based on the Examiner’s decision. If the Trademark Examiner determines that the mark is identical or similar to an existing trademark application, he/she will issue a notice of objection. The objection notice must be responded to within 30 days. On responding to the notice, a hearing date would be provided for the applicant to present proof of use and submit arguments for registration of the mark. In case the Trademark Examiner objects to your trademark application, we can help you with filing an objection reply or appearing on your behalf at hearings at an additional cost.
Benefits of Trademark Registration:
On registration of the trademark, the R symbol can be used to notify the public that the mark is a registered trademark.
In case of an infringement of a registered trademark, the owner of the mark can get a legal remedy. A court may grant relief for trademark infringement or for passing off. Trademark infringement relief can be provided thru an injunction, damages, or an account of profits, together with or without any order for the deliver-up of the infringing labels and marks for erasure or destruction.
Documents Required for Applying for Trademark Registration:
For Individuals/Proprietorship Entities:
> PAN card of the applicant/proprietor
> Aadhaar card of the applicant/proprietor
> Brand to be Trademarked
> Nature of Business Activity
For Non-Individuals/Companies/LLPs:
> Certificate of Incorporation (For Companies & LLPs)
> PAN card of the Entity
> MSME Certificate or Start-up India Registration Certificate (ANYONE)
> Brand Name to be Trademarked
> Nature of Business Activity
NOTE:
1. Brand Logo registration is NOT mandatory. Even words can be applied for trademark registration.
2. In case of assistance required in obtaining an MSME Certificate, Relax Plan is required to be obtained.
Our Charges For Applying For Trademark Registration:
Smart Plan @ Rs 6,900/- all-inclusive
Applying for trademark registration under one class for Individuals/Proprietors and small enterprises having MSME or Start-up India registration certificate
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Relax Plan @ Rs 7,900/- all-inclusive
Applying for MSME and Trademark registration under one class for small enterprises
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Gold Plan @ Rs 12,900/- all-inclusive
Applying for trademark registration under one class for non-individuals and other companies not having MSME or Startup India Registration
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