Ownership of the Company rests with the shareholders of the Company and not with the Directors of the Company. There may be instances where a change would require in ownership or Shareholding Pattern.
Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. shares are presumed to be capable of transfer, even in a private company, unless the company has restricted the right to transfer them by a provision in its articles
Shares are transferred by executing Share Transfer deed.
Stepwise process of Share Transfer in a Private Limited Company
- Execution of Share Transfer Deed.
- Stamping of the Share Transfer deed as per the applicable stamp act
- Have a Witness
- Attach the Share certificate with the Transfer Deed
- Send it to the company and if found good the company will process the Transfer procedure
- Issue of New Share certificate