Newtaxage

Share Transfer & Transmission Process Flow

Whether you're transferring shares voluntarily or through transmission due to unforeseen circumstances, our streamlined process ensures compliance and efficiency at every step

Step 1 - Initiation

Transfer: The process begins when the transferor (current shareholder) decides to transfer shares to the transferee (new shareholder).

Transmission: For transmission, legal heirs or representatives initiate the process due to the death, insolvency, or incapacity of a shareholder.

Step 2 - Documentation

Transfer: A Share Transfer Deed (Form SH-4) is drafted and signed by both parties. Stamp duty is paid as per jurisdictional requirements.

Transmission: Legal heirs provide necessary documentation (e.g., death certificate, succession certificate, probate, etc.) to prove their claim over the shares.

Step 3 - Board Approval

Transfer: The Board of Directors reviews the share transfer, ensuring it adheres to the company’s Articles of Association (AoA). The transfer must be approved in a board meeting.

Transmission: The Board reviews the claimant’s documents and verifies their right to the shares before granting approval.

Step 4 - Share Register Update

Transfer: Once approved, the company updates its share register with the transferee's details, reflecting the change in ownership.

Transmission: After approval, the company updates its share register to reflect the legal heirs or representatives as the new shareholders.

Step 5 - Issuance of Certificates

Transfer: The transferee receives a new share certificate, completing the transfer of ownership.

Transmission: The legal heirs or representatives are issued fresh share certificates, finalizing the transmission of shares.

Share Transfer & Transmission

Effortless Share Ownership Changes - The Transfer & Transmission Journey

The process of share transfer and transmission involves several key parties, each playing an essential role:

1.Initial Subscribers: The original individuals who subscribe to the company's memorandum of association at its formation.

2.Legal Representatives: In cases of a shareholder’s death, a legal representative steps in to manage the transfer or transmission of shares to the rightful heirs.

3.Transferor: The current shareholder who intends to transfer ownership of their shares to another party.

4.Transferee: The individual or entity receiving the shares in the transfer process.

5.The Company: Regardless of whether it is a public or private entity, the company itself plays a central role in facilitating the transfer or transmission, ensuring all procedures align with its governing documents.

FAQ on Share Transfer & Transmission

Frequently Asked Questions (FAQ) - Share Transfer & Transmission

1. What is the difference between Share Transfer and Share Transmission?

Share transfer involves the voluntary transfer of shares from one shareholder to another, often due to sale or gift. Share transmission, on the other hand, occurs when shares are transferred due to a shareholder’s death, insolvency, or incapacity, with shares going to the legal heirs or representatives.

2. What documents are required for a Share Transfer?

For a share transfer, you’ll need a signed Share Transfer Deed (Form SH-4), original share certificates, and proof of identity for both the transferor and transferee. You will also need to pay the applicable stamp duty.

3. How does Share Transmission work in the case of a deceased shareholder?

In the event of a shareholder’s death, the legal heirs must submit documents like the death certificate, succession certificate or probate, and proof of identity. The company will then process the transmission and update the share register accordingly.

4. How long does the Share Transfer process take?

The process typically takes around 7-15 business days, depending on the company’s approval procedures and document completion.

5. Are there any restrictions on transferring shares in a private company?

Yes, private companies often impose restrictions on share transfers, such as requiring Board approval and offering existing shareholders the first right of refusal before shares can be transferred to outsiders.

6. What is the role of the Board of Directors in the Share Transfer process?

The Board of Directors reviews and approves the share transfer, ensuring it adheres to the company’s Articles of Association and complies with all legal requirements.

7. Do I need professional help for Share Transfer & Transmission?

While it’s possible to handle these processes independently, it’s advisable to seek professional assistance, especially in more complex cases or when transmission is involved due to death or incapacity. NewTaxAge can help ensure everything is handled correctly.

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Share Transfer & Transmission Process Flow

Navigating Share Transfers & Transmission

Share Transfer & Transmission

Effortless Share Ownership Changes - The Transfer & Transmission Journey

FAQ on Share Transfer & Transmission

Frequently Asked Questions (FAQ) - Share Transfer & Transmission

1. What is the difference between Share Transfer and Share Transmission?

2. What documents are required for a Share Transfer?

3. How does Share Transmission work in the case of a deceased shareholder?

4. How long does the Share Transfer process take?

5. Are there any restrictions on transferring shares in a private company?

6. What is the role of the Board of Directors in the Share Transfer process?

Client Testimonials
We Are Rated 4.8 on Google

.

Place your query/Request Call Back from our experts

Place your query/Request Call Back from our experts

Share Transfer & Transmission Process Flow

Navigating Share Transfers & Transmission

Share Transfer & Transmission

Effortless Share Ownership Changes - The Transfer & Transmission Journey

FAQ on Share Transfer & Transmission

Frequently Asked Questions (FAQ) - Share Transfer & Transmission

1. What is the difference between Share Transfer and Share Transmission?

2. What documents are required for a Share Transfer?

3. How does Share Transmission work in the case of a deceased shareholder?

4. How long does the Share Transfer process take?

5. Are there any restrictions on transferring shares in a private company?

6. What is the role of the Board of Directors in the Share Transfer process?

Client Testimonials We Are Rated 4.8 on Google

Client Testimonials
We Are Rated 4.8 on Google