Transfer Shares explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Shares in a private company are transferred using a share transfer deed (Form SH-4), subject to the restrictions in the Articles. Here is the process.
Process
- Check the AOA for pre-emption/right-of-first-refusal restrictions
- Execute Form SH-4 (share transfer deed) with stamp duty
- The board approves the transfer
- Update the register of members and issue a new share certificate
Stamp duty
Stamp duty of 0.015% of the consideration/value applies on the transfer of shares.
Note
No RoC form is filed for each transfer, but the change reflects in the next annual return (MGT-7).
Frequently Asked Questions
How are shares transferred in a private company?
Execute Form SH-4 with stamp duty, get board approval, and update the register of members.
What is Form SH-4?
The share transfer deed used to transfer shares.
What stamp duty applies on share transfer?
0.015% of the consideration or value of the shares.
Is an RoC filing needed for share transfer?
Not per transfer — it reflects in the next annual return (MGT-7).
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