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Documents Required for :
Share Transfer

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Share Transfer Filing for Company

The Share Transfer Filing form is used by companies to document the transfer of shares between shareholders. This filing is required under the Companies Act, 2013 whenever shares are transferred from one shareholder to another, ensuring compliance with corporate regulations.

Who Needs to File for Share Transfer?

  • Companies that wish to transfer shares between shareholders.
  • Shareholders who wish to transfer their shares to another individual or entity.
  • Companies ensuring compliance with the provisions of the Articles of Association (AOA) regarding share transfer.
  • Companies that need to document and update share transfer records as per regulatory requirements.

Benefits of Share Transfer Filing

  • Ownership Transfer: Allows shareholders to transfer ownership of shares to another individual or entity.
  • Legal Compliance: Ensures that the company follows the legal process and updates its shareholding records accordingly.
  • Investor Confidence: Maintains transparency in share ownership and provides clarity for investors or potential buyers.

Consequences of Non-Compliance

If a company fails to file for share transfer when required, it may face difficulties in recognizing valid transfers, leading to disputes among shareholders. This could result in non-compliance with the Companies Act, 2013, and may attract penalties or legal challenges.

Documents Required for Share Transfer Filing

  • Board resolution or shareholders’ resolution approving the share transfer.
  • Share Transfer Form (SH-4) duly signed by the transferor and transferee.
  • Updated register of members reflecting the change in shareholding.
  • Proof of identity and address of the transferor and transferee (as required by the company).
  • Any other relevant documents as required by the Ministry of Corporate Affairs (MCA).

Step-by-Step Process for Share Transfer Filing

  • Preparation of Documents: Gather all necessary documents, including the Share Transfer Form (SH-4) and resolution approving the transfer.
  • Execution of Share Transfer: Ensure that both the transferor and transferee sign the Share Transfer Form (SH-4) and provide necessary details.
  • Board Resolution: Pass a Board resolution or shareholders’ resolution to approve the transfer of shares.
  • File with MCA: Submit the share transfer documents through the Ministry of Corporate Affairs (MCA) portal.
  • Confirmation: Upon submission, the MCA processes the filing and updates the company records once the transfer is approved.

Filing Lounge's Process for Share Transfer Filing

  • Initial Consultation: We assess your company's situation and guide you through the share transfer process.
  • Document Preparation: We assist in preparing and verifying the required documents, including the Share Transfer Form and board resolution.
  • Filing with MCA: We file the share transfer on your behalf with the Ministry of Corporate Affairs (MCA) to ensure timely submission.
  • Post-Filing Support: We provide assistance in tracking the status of the filing and obtaining confirmation from the MCA.

How Filing Lounge Can Help

Filing Lounge offers expert services to ensure smooth and compliant share transfer filings for companies. We manage the entire process, from document preparation to submission, ensuring timely compliance with legal requirements.

  • Expert Guidance: Get expert advice on the share transfer process and the necessary documentation.
  • Comprehensive Assistance: We handle all the paperwork, filings, and coordination with the Ministry of Corporate Affairs (MCA).
  • Quick Processing: We ensure your share transfer is processed on time to meet statutory deadlines.
  • Compliance Assurance: We ensure that your share transfer filing is fully compliant with the relevant laws and regulations.

For more information, visit our Share Transfer Filing page.

With Filing Lounge, the share transfer filing process is quick, easy, and fully compliant with the law.

Related Guides

Documents Required For Share Transfer

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

Share Transfer FAQ's

What is Share Transfer?

Share Transfer is the process of transferring ownership of shares from one shareholder (the transferor) to another (the transferee), according to the provisions of the Companies Act, 2013 and the company's Articles of Association (AOA).

Why is Share Transfer necessary?

Share transfer is necessary when a shareholder wishes to sell or transfer their shares to another person. This allows for changes in ownership and can be part of business restructuring or investment decisions.

What documents are required for Share Transfer?

The documents required for share transfer include the share transfer deed, the share certificates, proof of identity of the transferor and transferee, board resolution or consent of shareholders (if necessary), and any other documents required as per the company’s AOA and the MCA.

Can Share Transfer be done online?

Yes, Share Transfer can be processed online for listed companies or through the company’s share registrar services. However, private companies may require physical submission of documents depending on their internal procedures.

What is the resolution for Share Transfer?

The resolution for share transfer is a formal approval granted by the Board of Directors or shareholders, authorizing the transfer of shares. This approval is necessary in private companies or in cases where the company's Articles of Association require such consent.

What happens after submitting the Share Transfer filing?

Once the share transfer documents are submitted and approved by the board (if required), the company updates its shareholder register to reflect the new ownership. The transferor and transferee will receive updated share certificates if applicable.

Can a company file for Share Transfer after its formation?

Yes, a company can file for share transfer at any time after its formation, as long as it adheres to the provisions outlined in the company's Articles of Association and the Companies Act, 2013.

What is the process for Share Transfer?

The process involves submitting a share transfer deed, obtaining board approval (if required), updating the shareholder register, and issuing new share certificates reflecting the transfer. The transfer process may vary depending on whether the company is listed or private.

What happens if I do not file for Share Transfer?

If share transfer is not filed correctly, the transfer of ownership may not be legally recognized, which could result in disputes, incorrect shareholder records, and potential legal challenges.

How long does the Share Transfer filing process take?

The share transfer process typically takes a few days if all the required documents are in order. The time required for approval from the Board of Directors or shareholders may vary depending on internal company procedures.

How can Filing Lounge help with Share Transfer?

Filing Lounge provides expert assistance with the share transfer process, ensuring all necessary documents are properly prepared, the transfer is recorded correctly, and compliance with the Companies Act, 2013 and the company’s AOA is maintained.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.