Share Transfer

Shareholders can transfer ownership of their shares through a duly specified procedure.

Digital Filings can help you in…:

 Arranging the Documents

 Drafting Share Transfer Deed

 Managing Transferred shares

 Issuing shares to new shareholders

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Understanding Transfer of Shares

The shares of a company are a movable asset and its ownership can be transferred from one person to another. An existing shareholder can transfer the shares held to other individual or entity by following certain prescribed guidelines as stated for share transfers.

With a motive to secure rights of investors and shareholders, the Government of India came forward with a certain set of rules specified under Section 56 of The Companies Act, 2013. As per the Act’s guidelines, the Company must register itself for Transfer of Securities to serve the ownership transfers, according to the format laid down in Form No SH. 4. In case a Company doesn’t acquire share capital, it cannot register itself for Transfer of Securities.

Key Reasons for Transfer of Shares






Shareholder can transfer the ownership of their shares to their spouse or sibling or to other family members, maintaining the ownership within the family only.


Any Company reorganizing its ownership structure can also choose to transfer its shares in accordance with the duly specified ratio.


Shareholders can leave a Company by selling their shares to existing shareholders or other individuals by transferring or exchanging their ownership in monetary terms.


Often a company taking over another entity can choose to transfer its shares, because shares define the Company’s ownership.

Required Documentation Chart

Documents for Share Transfer
  • Scanned copy of shares to be transferred
  • Scanned copy of Certificate of stamp duty payable on issue of share certificate
  • Agreement on Share transfer
  • Valuation of shares to be transferred
  • Self Attested and Scanned copy of PAN Card or Passport of Transferor
  • Self Attested and Scanned copy of PAN Card or Passport of Transferee
  • Payment Proof of Transfer (if any)

We are Glad to Help!

Transfer of share is managed by the Articles of Association (AoA) of a Company, the shares to be transferred first offered to the existing members. Shares, however, can only be transferred to an individual when existing members decline to accept the shares first offered to them.
The share transfer process is a bit complex due to the set rigorous provisions under the Company law as well as applicability of state stamp act that differs from state to state.

Do Not Worry!

Expert Advisers @ Digital Filings can proficiently assist shareholders with their share transfer requests.

Pocket-Friendly Options

How we Do It…

Shareholders are legal owners of shares and transfer of its ownership, to an individual or entity, is possible through a prescribed process. Partners @ Digital Filings can help shareholders in transferring there shares within 15 to 20 business days.


Notifying Intentions

Shareholders need to submit a expressing their intentions to transfer the shares, while existing members of the company are informed and invited to buy the shares.


Understanding Company’s Constitution

An expert will look into the Articles of Association (AOA) of the company to comprehend the working of the entity. The review is necessary before initiating the share transfer process.


Managing Paperwork

Once the deal regarding the transfer is confirmed, the Digital Filings’ representative shall initiate the share transfer process by proficiently collecting and compiling the relevant documents of the concerned individual or shareholder.


Issuance of Share

After completing the formalities, Team @ Digital Filings will assist you in making desired transferrable changes and issuing or transferring the shares to new owners.

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Digital Filings is a leading business and legal services provider in India, assisting entrepreneurs in effectively and economically setting-up and managing their venture. Digital Filings consistently ensures that your venture is always compliant, so you can efficiently focus on making your business ascend.

Our strong network of proficient partners thoroughly understands the business specific regulatory/legal requirements and is focused to assist business owners at every stage of their venture.

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