Ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another.
Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company’s shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to affecting a share transfer.
Vincyte can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act; 2013.Vincyte is an easy way for companies to manage share transfers. Produce branded share certificates with automatic updates to online statutory registers.
Company name and registration number.
Number and class (type) of shares being transferred.
Amount paid or due to be paid for the shares, if applicable.
Details of any non-cash payments, if applicable.
Name and address of existing owner (transferor).
Name and address of new owner (transferee).
Authorising signature of both parties.
Declaration of Stamp Duty liability, if any.