What is the procedure for transfer of shares in a private company?

The process involves reviewing the AOA, drafting a share transfer agreement, submitting the share transfer form (SH-4), obtaining board approval, paying stamp duty, and issuing new share certificates.

Can shares in a private limited company be transferred freely?

No, share transfers in private companies are usually restricted and require board approval and adherence to the company’s AOA.

Do I need a lawyer to transfer shares in a private company?

While it is not mandatory, it is highly recommended to consult a legal professional or company secretary to ensure proper compliance with all requirements.

What is the stamp duty for share transfer?

The stamp duty is calculated based on the market value or consideration of the shares being transferred and varies by state.

Can shares be transferred to a non-member of the company?

It depends on the company’s Articles of Association. Many private companies restrict transfers to only existing members unless the board approves the transfer to an outsider. If you’re considering the procedure for transfer of shares in a private company, consult professionals for guidance.