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Private Limited Company Share Transfer in India

Seamless & Compliant Ownership Transition with Mequintrax Digital Services

Transferring shares in a Private Limited Company is a formal legal process governed by the Companies Act, 2013. Shares represent ownership in a company and may be transferred to another person—subject to company bylaws, shareholder agreements, and regulatory norms. While private limited companies restrict the free transfer of shares to protect ownership structures, a well-defined process exists to facilitate a lawful and smooth transfer.

At Mequintrax Digital Services, we specialize in assisting businesses and shareholders with secure, legally compliant share transfers. Our expert team ensures all documentation, approvals, and filings with the Ministry of Corporate Affairs (MCA) are handled with precision, so the transition of ownership is seamless and risk-free.

What is Share Transfer in a Private Limited Company?

Share Transfer refers to the legal process of transferring ownership of company shares from one person (or entity) to another. In a Private Limited Company, shares represent partial ownership, and the transfer of these shares alters the shareholding pattern of the company.

The process is governed by the Companies Act, 2013, and must adhere to the rules outlined in the company’s Articles of Association (AOA). Unlike public companies, private companies impose certain restrictions on share transfers to maintain control over ownership.

Share Transfer Rules in India for a Private Limited Company By Mequintrax Digital Services

In India, the process of transferring shares in a Private Limited Company is regulated by the Companies Act, 2013 and the company’s Articles of Association (AOA). Unlike public companies, private companies place restrictions on the transfer of shares to maintain control over ownership. As per the law, the AOA must clearly define the rules related to share transfer, which may include restrictions like giving existing shareholders the first right to purchase the shares before they can be transferred to an outsider. This is known as the Right of First Refusal.

Before initiating a share transfer, it is essential to obtain approval from the company's Board of Directors. Once approved, both the seller (transferor) and the buyer (transferee) must execute a Share Transfer Deed in Form SH-4, which must be duly signed, dated, and stamped within 60 days of execution. The stamp duty applicable on share transfer is 0.25% of the total consideration or market value, whichever is higher.

The original share certificate must be submitted to the company along with the transfer deed for endorsement. After verifying all documents and approvals, the company will update the

Register of Members to reflect the new shareholder's details. In some cases, relevant filings may also be required with the Ministry of Corporate Affairs (MCA).

At Mequintrax Digital Services, we provide expert assistance throughout the share transfer process, ensuring legal compliance, accurate documentation, and smooth execution. Whether you’re a business owner or an investor, our team ensures that every share transfer is completed securely and efficiently as per Indian corporate laws.

Documents Required for Share Transfer in a Private Limited Company

Ensure Legal & Seamless Ownership Transition with Mequintrax Digital Services

To transfer shares legally in a Private Limited Company, certain documents must be prepared and submitted in accordance with the Companies Act, 2013. Here's a complete checklist of the documents required:

1. Share Transfer Deed (Form SH-4)

    • Duly executed by the transferor (seller) and transferee (buyer)
    • Must be stamped as per Indian Stamp Act
    • Must be submitted within 60 days of execution

2. Original Share Certificate

    • The physical certificate of shares being transferred
    • Submitted to the company for cancellation and re-issuance in the new shareholder's name

3. Board Resolution

    • Issued by the company’s Board of Directors
    • Approves the transfer and registers the new shareholder in the company’s records

4. PAN Card of Transferee

    • Mandatory for identification and income tax compliance
    • A self-attested copy is usually required

5. Address Proof of Transferee

    • Acceptable documents: Aadhaar Card, Passport, Voter ID, Utility Bill (recent)
    • Helps verify identity and residency

6. Articles of Association (AOA)

    • To confirm internal share transfer rules and restrictions
    • Often required to check the Right of First Refusal clause

7. Consent Letter or No Objection Certificate (if applicable)

    • Required if the AOA restricts free transfer of shares
    • Typically issued by existing shareholders

8. Stamped Transfer Deed

    • Stamp duty must be paid at 0.25% of the total consideration or market value
    • Essential for the deed to be legally valid

    Need Help with Documentation?

    Mequintrax Digital Services handles the end-to-end process—from preparing documents to MCA filing—ensuring 100% compliance and a hassle-free experience.

Top 6 Reasons to File Your Share Transfer with a Trusted Tax Filing Expert

100% Legal Compliance

We ensure every share transfer follows the Companies Act, 2013 and MCA regulations precisely. This minimizes risks like form rejection, penalties, or legal disputes — giving you peace of mind and full regulatory compliance.

Expert Documentation Support

Our team prepares and verifies Form SH-4, board resolutions, share transfer deeds, and NOCs with absolute precision. We eliminate errors and ensure all supporting documents meet MCA expectations for smooth and fast approvals.

Timely MCA Filings

Avoid costly delays with our on-time MCA eForm submissions. We proactively track deadlines, complete filings, and follow up with the ROC—ensuring your share transfer is legally recognized without compliance gaps or last-minute stress.

Personalized Advisory

No two companies are the same. We assess your Articles of Association (AOA), shareholder composition, and unique transfer case to provide tailored legal and strategic guidance for a smooth and dispute-free transfer process.

Pan-India Online Service

From metro cities to remote towns, we assist clients across India with 100% digital share transfer services. You get expert support, quick coordination, and document submission — all without needing to visit any office.

Transparent Pricing

We offer flat-rate pricing with no hidden charges or last-minute fees. Every client receives a clear breakdown of costs, government fees, and timelines — so you know exactly what you're paying for at every step.

? What is share transfer in a private limited company?

? Can shares be freely transferred in a private limited company?

? Is Form SH-4 mandatory for share transfer?

? How much stamp duty is payable on share transfer?

? What if the AOA restricts the transfer?

? How long does the share transfer process take?

? Who approves the share transfer?

? Is MCA filing required for every share transfer?

? Can Mequintrax handle everything online?

? Why is share transfer important?


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