Shares in a private company are transferred by an instrument in the prescribed form, stamped, approved by the board if the articles require, and entered in the register of members. It is not an MCA incorporation form, but the company’s annual return must later show the new holder. We prepare the deed, check the articles for restrictions, and minute the approval.
Who this is for
- Founders buying or selling a stake
- Family transfers
- Investor secondaries that are not a fresh issue
Documents usually needed
- Folio and certificate numbers
- PAN of transferor and transferee
- Consideration
- Articles of association
How Digital Filings handles it
- Read transfer restrictions in the articles.
- Prepare and stamp the instrument.
- Hold the board approval, cancel the old certificate and issue the new one.
Timeline
A few days plus the time the state takes to adjudicate stamp duty, where adjudication is required.
Questions people ask
Is gift of shares stamp-free?
Not automatically. Several states still levy duty on gifts. We check the state before the deed is signed.
Official reference: MCA. Always confirm the live rule on that portal.