Transfer Shares Correctly — Legal Documentation, Stamp Duty, Register Update
A share transfer in a Private Limited Company is the process by which one shareholder (transferor) sells or transfers their shares to another person (transferee — existing shareholder or a new investor). Unlike public company shares that are freely tradeable on stock exchanges, Private Limited Company shares have restrictions on transfer as per the MOA/AOA and the Companies Act — typically requiring Board approval and a Right of First Refusal (ROFR) to existing shareholders. The actual transfer is effected through a Share Transfer Deed (Form SH-4) stamped at the applicable rate (currently 0.25% of consideration) and approved by the Board.
Post-approval, the share register (Register of Members) must be updated, the old share certificate cancelled, and a new share certificate issued to the transferee — all within 1 month of Board approval. Failure to follow this process leaves the transfer legally incomplete, creating potential disputes on dividends, voting rights, and future exit. VITTAX manages the entire share transfer process — from valuation advisory and Board resolution to stamp duty payment, SH-4 drafting, and share certificate issuance.
Pricing
Share Transfer
₹2,499 per transfer
Complete share transfer process
Ideal for: Private Limited Companies where existing or new shareholders are buying shares
Frequently Asked Questions
Does a Private Limited Company share transfer require shareholder approval?
Share transfers in a Private Limited Company typically require only Board approval. However, if the MOA/AOA contains pre-emption rights (right of first refusal), existing shareholders must be offered the shares first. VITTAX reviews your AOA before advising on the correct transfer process.
What is the fair value for share transfer — can I transfer at face value?
Transfers between residents can be at any negotiated price. For FDI / FEMA-covered transfers (to/from non-residents), the transfer price must be not less than the fair market value determined by a SEBI-registered valuer (DCF method). VITTAX advises on valuation compliance for such transfers.
⚡ Transfer Process
Talk to Our MCA Team → We handle SH-4 drafting, stamp duty, board resolution, and new certificate issuance end-to-end