Transfer of Shares to Indian Citizen
Transferring shares to an Indian citizen generally involves a simpler process compared to foreign citizens, but compliance with certain regulations is still crucial. Here's a breakdown of the key steps and considerations.
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What Is Transfer of Shares?
Transfer of shares from one Indian citizen to another involves the change of ownership of shares in a company.
Shares can be easily transferred from a shareholder to any person (a new or existing shareholder). Shares are transferred a way of sale or gifting. Usually, the shares are transferred to introduce a new shareholder in a company.
Process Transfering Shares from One Indian to Another
Step 1: Share documents and requirements
Share your requirements and the list of documents mentioned below.
Step 2: Receive duly executed transfer form (SH-4)
SH-4 will be received along with the original share certificate within sixty days from the date of execution.
Step 3: Passing the board resolution
A resolution would be passed to brief out about details
Step 4: Share the signed document
Share all your signed documents with us.
Step 5: Wazzeer provides a new share certificate
Wazzeer would then issue a new share certificate
Step 6: Sharing deliverables
We will share the Duly stamped Share Transfer Form (SH-4), New Share Certificates Resolution, and FC-TRS Form and Acknowledgment
Documents Required to Transfer Shares from an Indian to Another
- Original Share Certificates of Transferor
Key Deliverables
- Duly stamped Share Transfer Form (SH-4)
- New Share Certificates
- Passed Board Resolution
Why choose Wazzeer?
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One platform for all your requirements
Incorporation is just the first step. Wazzeer supports you throughout your journey as an entrepreneur. Log in to get things done efficiently. A dedicated Account Manager offers the required human touch and acts as an advisor to you.
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Experienced professionals
Our professionals have at least 5 years of experience and have incorporated thousands of companies among them. The rich experience ensures that the process is smooth and right in the first go.
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Defined process
Over the last few years, doing over 500 incorporations, we have defined every step of the process. A virtual process is in place enabling us to deliver hassle free experience for you.
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Cost Effective
You pay what you see in the proposal. No surprises or hidden charges.
Frequently Asked Questions
Difference between transmission and transfer of shares in India
When the holder of shares is no more or has been declared lunatic or insolvent or incase the holder of shares is a company, and it has wound up then transmission of shares takes place according to the operation of law.
There is no transfer deed executed, and the transferee will be given the rights to the shares, and the transmission is recorded only when the transferee gives proof of entitlement to the shares. The shares of a public company are freely transferable and the transfer takes place between the transferor (one who transfers) and the transferee (one who receives), unless the company has a valid reason to disallow the same. The shares of a private limited company are not transferable subject to certain exceptions. A transfer deed is executed for the transfer of shares
What is share transfer agreement of in India?
Shares transfer agreement, also referred as a stock purchase agreement. The agreement is a legal document used to transfer the ownership of shares of stock. The party transferring shares could be a person or a company. This agreement type is usually entered into by a buyer and a seller where the seller wishes to sell a specific number of shares to the buyer for an agreed upon price. The shares transfer agreement specifies the terms and conditions of the sale.
The agreement normally contains:
- Details about the party transferring the shares.
- Consideration in exchange of shares to be received by seller.
All Information about the shares such as the share type and the share value
What is share transfer law in India?
Under section 56 of the Companies Act, 2013 a company will register a transfer of securities of the company (which includes shares), only when a proper instrument of transfer as per the format laid down in Form No SH. 4 (when such securities are held in the physical form).
The form needs to be duly stamped, with adequate value, dated and executed by or on behalf of the transferor and the transferee.
The form needs to be sent to the company by the transferor or the transferee within a period of sixty days from the date of execution, along with the share certificate/certificate relating to the securities. In case there is no such certificate, the application must be sent along with the letter of allotment of securities.
A company will not register a transfer of partly paid shares, unless the company has given a notice in Form SH-5 to the buyer and has obtained no objection from the buyer within two weeks from the date of receipt of notice.
How does transfer of shares takes place after death of shareholder in India?
When shares have to be transferred in case of death of the shareholder: One of the most important things that demat account holders should do is appoint a nominee. This will make it easy for the beneficiaries to claim the shares held in the demat account, in the event of the holder’s untimely death.