You’ve just closed the deal. You’re buying a stake in a promising startup, or maybe you're transferring shares to a family member.
A company is legally barred from recognizing the…
A company is legally barred from recognizing the transfer and updating its Register of Members. You might have paid for the shares, but in the eyes of the law, you're not the owner.
Compliance Burden High, due to complexity and inconsistencies.
Compliance Burden
High, due to complexity and inconsistencies. Dramatically reduced and streamlined.
For Unlisted Shares (private companies): The value is…
For Unlisted Shares (private companies): The value is the consideration amount agreed upon and mentioned in the transfer instrument (Form SH-4). This amount must reflect the fair market value of the shares.
The buyer must pay it themselves before executing…
The buyer must pay it themselves before executing the form. Manually pay online via the SHCIL portal and attach the e-stamp certificate to the Form SH-4.
Based on our hands-on experience, here is the…
Based on our hands-on experience, here is the exact process to follow for a flawless transaction. Role of Chartered Accountant: The 2024 Business Guide
Prepare Your Documents: Get the Share Transfer Deed (Form SH-4) and fill it out completely.
It is now a "duly stamped" instrument.
It is now a "duly stamped" instrument. Now, the transferor (seller) and transferee (buyer) can sign the form in the presence of a witness.
Look, the duty is small.
Look, the duty is small. The penalty is huge.
It requires an instrument of transfer and attracts…
It requires an instrument of transfer and attracts stamp duty. A 'Transmission' is the devolution of shares by operation of law, typically upon the death of a shareholder to their legal heirs.
A gift is legally considered a transfer.
A gift is legally considered a transfer. The transaction is subject to stamp duty at 0.015%, calculated on the fair market value of the shares on the date of the gift.