What Documents are Required for Share Transfers, Transferring shares in a company is an important legal step. It allows existing shareholders to sell or pass ownership of shares to another individual or entity. To complete this process correctly, you must prepare and submit certain documents. Let’s explore them one by one.
🧾 1️⃣ Share Transfer Deed (Form SH-4)
The first and most vital document is the Share Transfer Deed (Form SH-4). Both the transferor (seller) and transferee (buyer) must fill and sign this form. In addition, it must include the value of the shares, the name of the company, and other details.
💡 Always make sure the deed carries the correct stamp duty as per the Indian Stamp Act. Without proper stamping, the form becomes invalid, and the company cannot process the transfer.
🪪 2️⃣ Original Share Certificate
The next crucial document is the original share certificate. It confirms that the transferor legally owns the shares. The company uses this certificate to verify ownership before approving the transfer.
However, if the certificate is lost or damaged, the shareholder can apply for a duplicate certificate along with an indemnity bond. This ensures that the share transfer remains legally valid.
🧍♂️ 3️⃣ Board Resolution for Transfer
After receiving the necessary forms, the Board of Directors reviews and approves the share transfer. The board’s approval comes in the form of a resolution passed during an official meeting.
Once the resolution is passed, the company updates the Register of Members to include the name of the new shareholder. This step officially finalizes the transfer process.
🪙 4️⃣ Proof of Identity and Address
To maintain compliance, both parties must provide valid identity and address proofs. Usually, the following documents are accepted:
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PAN Card
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Aadhaar Card
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Passport or Driving License
These documents help the company confirm that the individuals involved are genuine and legally eligible for the transaction.
🧾 5️⃣ Properly Stamped Deed
Before submission, ensure the deed is stamped correctly. The stamp duty is calculated on the market value of the shares being transferred. If the deed is not stamped, the company has full authority to reject the application. Therefore, double-check the stamping before handing over the documents.
🗂 6️⃣ Consent or Declaration Letter (If Needed)
In certain cases—such as transfers between relatives or within the same group of companies—the company may require a consent letter or declaration. This helps confirm that the transfer is voluntary and undisputed.
📊 🧠 Checklist of Documents Required for Share Transfers
| S.No | Document | Purpose |
|---|---|---|
| 1 | Share Transfer Deed (Form SH-4) | Main legal instrument for transfer |
| 2 | Original Share Certificate | Proof of ownership |
| 3 | Board Resolution | Company’s approval for transfer |
| 4 | ID and Address Proof | Identity verification |
| 5 | Stamped Deed | Legal validation |
| 6 | Consent/Declaration Letter | Confirms voluntary transfer |
✅ Final Thoughts
To conclude, completing a share transfer smoothly requires accurate documentation and proper verification. When every form is filled correctly, stamped, and approved, the process becomes easy and transparent.
Therefore, always cross-check your documents before submission. Doing so saves time, avoids rejections, and ensures full compliance with the Companies Act, 2013.