
It is the process of transferring shares between a corporation. Specifically, share transfer can be sold or gifted to the shareholders. Henceforth, this operation is done legally. Therefore, some changes will be made in the legal documentation of the corporation such as partnership deed, etc.
There are some specific classes of incorporations that can go through this process.
Private Limited
Public Limited
Limited Liability
There is not a specific time or period of share transfers. So, you can transfer shares anytime after incorporating a private limited, public limited, and limited liability.
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Certain documents should be prepared to transfer shares:
Article of association
Transfer deed on stamp paper
Witnesses should be present during the time of signing of the transfer deed
Company registration documents
Paid-up capital
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Stage 1: Prepare transfer deed and do submission at the government office.
Stage 2: In this stage, you will either get approval from the board of directors or it will be opposed. So, if the share transfer is approved you will proceed for stage 3.
Stage 3: Update the memorandum of the company by updating the shares of each member.
Stage 4: Narrate the transfer of shares on the forms and you will be done![/icon_timeline_item][/icon_timeline]
Many incorporations are hesitant to transfer shares because of the complexed stages. They don’t seek consultation, hence they do not complete the legal procedures. Therefore, they have to go through penalties and difficulties in the future. Our experts will consult you in all stages of share transfer. We will try to represent this process to you as natural as we can.
