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Share Transfer and Termination

Transfer of

Shares with ease

Shares can be transferred by executing share transfer deed. Complete all procedure seamlessly with ThinkBiz Filings. Prices start at INR 2999/- only.

 
 
 
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Share Transfer & Transmission

All you need to know

Meaning of Share Transfer:

Transfer of shares means the voluntary handing over of the rights and possibly, the duties of a company member (as represented in a share of the company). The rights and duties of the share transfer happen from a shareholder who wishes to not be a member of the company any more to a person who wishes of becoming a member.

Thus, shares in a company are transferable like any other movable property in the absence of any expressed restrictions under the articles of the company.

Shareholders are real owners of the Company. They have limited liability towards the company. They have powers to appoint directors who manage the company affairs in routine. Transfer of shares has the effect of a change in ownership. Share transfer in a private limited company is usually restricted. Shares have to first be offered to existing shareholders for sale.

Share transfer can be effected subject to a relevant provision in the Articles of Association of a Private Limited Company. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer for Private Limited Company.

ThinkBiz Filings is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Share transfer procedure with ThinkBiz Filings is easy, seamless, cheapest and quickest with ThinkBiz Filings! Apart from a Share transfer Compliances,ThinkBiz Filings also helps entrepreneurs with ROC Compliances, LLP Annual  Filing, OPC Annual Filing, Company Annual Filing, and all other compliances easily. You may get in touch with our compliance manager on 09704561215 or email info@Thinkbizfiling.com  for for free consultation.

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Compliance Requirements for a Partnership Firm

Income Tax Return

    Partnership firms must file annual tax returns. The due date is 31st July for non-audit cases and 30th September for audited firms. Timely filing ensures compliance, avoids penalties, and maintains legal standing.

    GST Compliances

      Partnership firms must register for GST if turnover exceeds the prescribed threshold. Regular GST return filing is mandatory to ensure compliance, avoid penalties, and maintain smooth business operations under GST laws.

      TDS Compliance

        Partnership firms must deduct and deposit Tax Deducted at Source (TDS) if liable under the Income Tax Act. Timely filing of TDS returns ensures compliance, avoids penalties, and maintains smooth financial operations.

        Accounting

          firms must maintain proper books of accounts reflecting an accurate and fair view of financial affairs. Each partner’s capital, withdrawals and profit share should be recorded separately to ensure transparency

          Tax Audit (if applicable)

            Required for partnership firms if business turnover exceeds ₹1 Cr or professional receipts surpass ₹50 Lakh under Section 44AB, ensuring regulatory compliance and accurate financial reporting.

            Firm Updates

              Partnerships must file updates on any changes in firm structure, such as partner additions, removals, or modifications to the partnership deed, ensuring legal compliance and transparency.

              Documents Required for Partnership Firms

              Quick Checklist

              • PAN card of all partners of the firm.
              • Aadhaar/Passport/Voter ID/Driving License of all partners.
              • Latest utility bill, rent agreement, or ownership proof of the firm’s office.
              • Latest bank statements of partners.
              • Recent photos of all partners.

              Compliance Requirements for a Partnership Firm

              Income Tax Return

                Partnership firms must file annual tax returns. The due date is 31st July for non-audit cases and 30th September for audited firms. Timely filing ensures compliance, avoids penalties, and maintains legal standing.

                GST Compliances

                  Partnership firms must register for GST if turnover exceeds the prescribed threshold. Regular GST return filing is mandatory to ensure compliance, avoid penalties, and maintain smooth business operations under GST laws.

                  TDS Compliance

                    Partnership firms must deduct and deposit Tax Deducted at Source (TDS) if liable under the Income Tax Act. Timely filing of TDS returns ensures compliance, avoids penalties, and maintains smooth financial operations.

                    Accounting

                      firms must maintain proper books of accounts reflecting an accurate and fair view of financial affairs. Each partner’s capital, withdrawals and profit share should be recorded separately to ensure transparency

                      Tax Audit (if applicable)

                        Required for partnership firms if business turnover exceeds ₹1 Cr or professional receipts surpass ₹50 Lakh under Section 44AB, ensuring regulatory compliance and accurate financial reporting.

                        Firm Updates

                          Partnerships must file updates on any changes in firm structure, such as partner additions, removals, or modifications to the partnership deed, ensuring legal compliance and transparency.

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                          FAQs On Share Transfer and Termination
                          Get answers to all your queries
                          • Share transfer refers to the process of transferring ownership of shares from one person (transferor) to another (transferee).
                          • In a Private Limited Company, shares are not freely transferable and may require Board approval. In a Public Limited Company, shares are freely transferable.
                          • It generally takes 8-10 working days to register Private Limited Company in India. The time taken for registration totally depends on the submission of relevant documents by the client and the speed of Government Approvals. To ensure quick and speedy registration, choose a unique name for your Company. The registration fees for the incorporation is inclusive in the package offered to you.
                          • ✅ Share Transfer Deed (Form SH-4) ✅ Original Share Certificate ✅ Board resolution approving the transfer ✅ ID & address proof of transferee and transferor
                          • Yes, stamp duty is payable as per state laws, usually 0.25% of the share value.
                          • In a Private Limited Company, share transfers may require Board approval as per the AOA. In a Public Limited Company, no approval is needed.
                          • Once documents are submitted, the Board usually approves within 30 days and issues new share certificates.
                          • No, a minor cannot enter into a share transfer agreement. However, shares can be held in a guardian's name.
                          • Yes, but FEMA (Foreign Exchange Management Act) guidelines must be followed.
                          • Yes, shares are transferred to the legal heir or nominee, as per the will or succession laws.
                          • Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@thinkbizfiling.com or call us @+91 970 456 1215

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