A share transfer is the process of transferring existing shares from one person to another, either through sale or gift, without creating new shares. This transaction allows shareholders to voluntarily pass on their ownership rights and potential obligations associated with company shares. The transfer can occur for various reasons, such as bringing a new business partner on board or transferring shares within a family.
The share transfer process is governed by specific legal regulations, primarily the Companies Act, which outlines the procedures for transferring share capital Typically, the transfer requires several key documents, including a share transfer deedthe original are certificate and potentially additional documents like PAN cards and board resolutions. A standard stock transfer form is used to document the details of the seller, buyer, number of shares, and payment considerations.
Upon completion of the transfer, the company must update its records, including the register of transfers and shareholders. A new share certificate must be issued to the buyer within two months, officially recognizing them as the legal owner of the transferred shares. The transfer is subject to the company’s articles of association, which may contain specific provisions or restrictions on share transfers, ensuring that the process maintains the company’s governance and ownership structure.
Access the Ministry of Corporate Affairs (MCA) portal at www.mca.gov.in. Use your credentials to log in. If you do not have an account, you will need to register for one using your DIN.
Once logged in, navigate to the "MCA Services" section and select "DIN Services." From the list of services, choose "DIR-3 KYC Web." This option is for directors who have previously filed their KYC and do not require any updates to their details.
On the DIR-3 KYC Web page, enter your DIN along with your mobile number and email ID. These details should match those previously registered with the MCA. Click on "Send OTP" to receive a One-Time Password (OTP) on your registered mobile number and email.
Enter the OTP received to verify your identity. Once verified, pre-loaded details associated with your DIN will be displayed. Review all information carefully to ensure its accuracy. If there are no changes needed, simply click on "Submit."
After submission, a zero-rupee challan and a Service Request Number (SRN) will be generated if the form is filed on or before September 30th of the financial year. Keep this SRN for future reference and correspondence with the MCA.
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