Transfer of Shares transfer shares legally — SH-4, stamp duty, and board approval handled.
The transfer of shares in a private company is governed by the Companies Act, 2013 and the company's Articles of Association. Private companies have a right of pre-emption — existing shareholders must typically be offered shares before they are transferred to an outsider. Any transfer must be supported by a valid Share Transfer Deed in Form SH-4, stamped with prescribed stamp duty, and approved by the Board of Directors.
Contact UsThe process involves execution of SH-4 by the transferor and transferee, payment of stamp duty at 0.25% of the consideration (or value of shares, whichever is higher), submission of the stamped SH-4 with the original share certificate, Board approval, and updating the Register of Members. New share certificates must be issued to the transferee within 60 days.
At Beyonte Compliances, we manage the complete process — from checking pre-emption requirements and preparing the SH-4 to obtaining board approval, updating the Register of Members, and issuing the new share certificate. We also manage FEMA compliance for transfers involving non-resident transferees.
What Our Share Transfer Service Covers
Pre-Emption Check
Reviewing the company's AOA for pre-emption rights and right of first refusal — ensuring the required offer to existing shareholders is made before transfer to an outsider.
Valuation Advisory
Advising on share valuation requirements — including FEMA implications where the transferee is a non-resident.
SH-4 Preparation
Preparing the Share Transfer Deed in Form SH-4 with correct particulars of the transferor, transferee, number of shares, and consideration.
Stamp Duty Payment
Computing and arranging payment of stamp duty on the SH-4 — at 0.25% of the consideration or the value of shares, whichever is higher.
Board Approval
Drafting and obtaining the Board Resolution approving the share transfer — with board minutes prepared.
Register of Members Update
Updating the Register of Members to record the transfer — with the date of board approval and the transferee as new registered holder.
Share Certificate Issuance
Cancelling the transferor's share certificate and issuing a new share certificate to the transferee within 60 days.
FEMA Compliance (if applicable)
Ensuring FEMA compliance — FIRC, valuation report, and RBI reporting — where the transferee is a non-resident.
Our Process
Pre-Emption & Valuation Review
Checking AOA pre-emption requirements and share valuation.
SH-4 Preparation & Stamping
Preparing and stamping the Share Transfer Deed.
Board Approval
Obtaining board resolution approving the transfer.
Register Update
Updating Register of Members with new shareholder details.
New Share Certificate
Cancelling old certificate and issuing new one within 60 days.
Why It Matters
Frequently Asked Questions
Need to transfer shares in your company? We'll handle it from SH-4 to new certificate.
Contact our team to begin the share transfer process — all documentation and compliance managed.