Trusted Corporate Consultancy across India
Corporate Changes

Shareholding / Share Transfer

Last updated: August 2026 · Reviewed by the Ravel Corporate Advisors team

Bringing in a new shareholder, buying out an existing one, or reorganising ownership — we handle the share transfer deeds, approvals and register updates so the change is valid and clean.

Key takeaways

  • Covers share transfers and changes to the shareholding pattern.
  • Executed through a share transfer deed (Form SH-4).
  • Stamp duty is payable on the transfer.
  • Board approval and register-of-members update required.

When shareholding changes

  • A shareholder sells or gifts shares to another person.
  • A new investor is brought in (with a fresh allotment or transfer).
  • An existing shareholder exits and is bought out.
  • Ownership is reorganised among family members or partners.

Documents required

  • Share transfer deed in Form SH-4, duly signed.
  • Share certificates of the shares being transferred.
  • Board resolution approving the transfer.
  • Stamp duty paid on the transfer value.
  • PAN and details of the incoming shareholder.

Process

  1. Transfer deed — SH-4 prepared and executed by transferor and transferee.
  2. Stamp duty — paid on the consideration.
  3. Board approval — the transfer registered by the board.
  4. Records updated — register of members and new share certificate issued.
A share transfer is different from a fresh allotment of new shares (which uses PAS-3). We advise which applies. Reconstituting the board too? See director change.
FAQs

Shareholding / Share Transfer — your questions answered

Through a share transfer deed in Form SH-4 signed by both parties, payment of stamp duty, board approval, and updating the register of members and issuing a new share certificate.

Yes. Stamp duty is payable on the transfer, generally as a percentage of the consideration or value of the shares.

A transfer moves existing shares between people (SH-4); an allotment creates and issues new shares (PAS-3). We advise which suits your situation.

A private company’s Articles usually restrict transfers (e.g. right of first refusal). We check your AOA before proceeding.

Update your shareholding

Tell us about the transfer and we’ll prepare the deed and update your records.

Call WhatsApp Enquire