Share transfers change who owns the company, and both the Companies Act and the Income Tax Act watch them closely. Transfers below fair value trigger tax in the buyer’s hands, and private companies must respect their articles’ restrictions.
Krishna TaxNova executes transfers end to end: valuation where needed, SH-4 execution with correct stamp duty, board approval and register updates, with the capital gains position computed before you sign.
What is Share Transfer?
Shares transfer through form SH-4, executed by transferor and transferee, stamped at the prescribed rate on consideration or fair value, and delivered to the company within sixty days. The board approves and registers the transfer, updating the register of members. Private company articles typically contain pre emption rights that must be followed, and tax rules under sections 50CA and 56(2)(x) police transfers below fair market value.
Who Should Apply for Share Transfer?
- Founders reorganising equity between themselves or family
- Investors exiting to incoming buyers
- Companies onboarding new partners through purchase rather than fresh issue
- Groups moving shareholding between entities
Benefits of Share Transfer
Tax Safe Pricing
Fair value is determined so neither side faces deemed income surprises.
Articles Compliance
Pre emption and transfer restrictions in the AOA are followed, keeping the transfer valid.
Correct Stamping
Stamp duty computed and paid properly, the classic defect in DIY transfers.
Complete Records
SH-4, board minutes and register entries prepared as one consistent set.
Diligence Proof
The trail satisfies future investors and acquirers examining your cap table.
Documents Required for Share Transfer
Keep these documents ready. You can upload them using the form on this page or send them to us on WhatsApp.
- Share certificates of the transferor
- PAN of transferor and transferee
- Consideration details and payment proof
- Valuation report where applicable
- Company master data and AOA
- Board meeting details for approval
Step by Step Process for Share Transfer
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Step 1: Structuring and Valuation
We confirm pricing against fair value and compute the tax impact for both sides.
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Step 2: Articles Check
Pre emption offers and waivers are documented as the AOA requires.
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Step 3: SH-4 Execution
The instrument is executed and stamped correctly.
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Step 4: Board Approval
The transfer is approved, registered and new certificates endorsed or issued.
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Step 5: Records and Reporting
The register of members is updated and the change flows into the next annual return.
Share Transfer at a Glance
Estimated Timeline
3 to 7 working days for standard transfers
Governing Authority
Companies Act procedure; tax under the Income Tax Act
Validity
Permanent once registered
Government Fees
Stamp duty at 0.25 percent (0.015 percent through depository) on consideration or fair value
Why Choose Krishna TaxNova for Share Transfer?
As CAs we handle the valuation and capital gains alongside the paperwork, so the transfer that looks fine today does not become a tax demand two years later.
CA Led Team in Delhi
Your work is handled by a qualified Chartered Accountant team, not a call center. You get correct advice the first time.
Upload Documents Online
Share everything from your phone or laptop. Use the secure upload form on this page or simply WhatsApp us your documents.
Transparent Pricing
You approve a clear quote before we start. No hidden charges at any stage.
End to End Support
From document collection to final approval and post registration compliance, one team stays with you throughout.
Share Transfer: Frequently Asked Questions
Can shares be gifted?
Yes, transfers without consideration are possible, but tax rules deem income for the recipient when fair value exceeds fifty thousand rupees, with exemptions for relatives. We structure gifts to use the exemptions correctly.
Why does a private company transfer need board approval?
Private company articles restrict free transferability; the board's registration of the transfer is what makes the transferee a member. Skipping it leaves ownership legally incomplete.
What valuation applies to unlisted shares?
Fair market value under prescribed rules, generally book value based for tax with DCF options in specific contexts. Pricing far from FMV creates tax in one or both hands, which our computation flags in advance.
Is a share transfer reported to the ROC?
Not immediately by a separate form for private companies; it reflects in the next annual return. The company's own registers and the stamped SH-4 are the primary record, which is why they must be perfect.
How long does Share Transfer take?
In most cases the work is completed in 3 to 7 working days for standard transfers. The exact time depends on how quickly documents are shared and on processing time at the department. We keep you updated at every stage.
What documents are needed for Share Transfer?
The key documents include share certificates of the transferor, pan of transferor and transferee, consideration details and payment proof, valuation report where applicable. Our team shares a simple checklist after the first call so nothing is missed.
Can I complete Share Transfer fully online?
Yes. The entire process is online. Fill the form on this page, upload your documents or WhatsApp them to us, and our experts handle the filings. You do not need to visit any office.
Which authority handles Share Transfer?
Share Transfer falls under Companies Act procedure; tax under the Income Tax Act. Krishna TaxNova prepares and files your application in the required format and responds to any queries raised by the department.
What is the validity of Share Transfer?
The validity is permanent once registered. We send renewal and compliance reminders in advance so you never miss a due date.
Do you provide Share Transfer outside Delhi?
Yes. We are based in Delhi and serve clients across India. Since the process is fully online, your location does not matter. Documents can be shared through the website or WhatsApp.
Get Share Transfer Done by Experts
Fill in your details, upload your documents online or send them on WhatsApp. A qualified CA will review your case and call you back with the exact steps and a fixed quote.