Share Transfer

Shares change hands by transfer (a voluntary transaction such as a sale or gift) or transmission (by operation of law, such as on death). A transfer needs a duly executed and stamped instrument, board approval, and updating of the register of members.

The firm prepares the instrument, computes the stamp duty, processes the board approval, and updates the records — including the FEMA reporting where a non-resident is involved.

1. 01

   Execute SH-4

   Prepare the share-transfer deed (SH-4), signed by transferor and transferee.

2. 02

   Stamp duty

   Pay the share-transfer stamp duty on the consideration or value.

3. 03

   Board approval

   Place the transfer before the board for approval, checking any AOA transfer restrictions.

4. 04

   Update records

   Endorse the share certificate, update the register of members, and file FC-TRS if a non-resident is involved.

PBT processes your share transfer correctly and keeps the records clean.

• Correctly drafted and stamped SH-4 instruments
• Accurate stamp-duty computation
• Board approval respecting the AOA restrictions
• FEMA (FC-TRS) reporting for transfers involving non-residents
• Scope, deliverables, and fees agreed in writing up front

• What stamp duty applies to a share transfer?

  Share-transfer stamp duty is payable on the instrument, generally at 0.015% of the consideration or value. We compute and arrange it.

• Can a private company restrict share transfers?

  Yes. A private company's articles restrict transfer — often a right of first refusal. We check the AOA and process the transfer accordingly.

• How long does it take?

  A transfer is usually completed within days of receiving the executed instrument and stamp duty, subject to the next board meeting.