Company ownership limited by shares is owned by the company’s shareholders. Shareholders appoint directors to manage the affairs of the company. Therefore, the ownership of the company resides with shareholders and not the directors. Therefore the transfer of ownership of a company can be completed by transferring shares of a company from one person or entity to another. In a privately held limited company, share transfer is usually more restricted than a listed company, which is traded publicly. The entire stock of a private limited company is usually held by a family or a small group of individuals or institutions. Therefore, most of the articles in the association of a private limited company limit the rights of a shareholder to transfer shares of the company to the outsider. Therefore, it is important to review the company’s Association of Articles before affecting share transfer. eMindsCA.com can help you transfer shares of a private limited company by completing the necessary procedures as per the Companies Act, 2013.
Reason for Share Transfer
Shareholders are the legal owners of a company’s shares. Shareholders may be natural persons or corporate entities. They can be NRIs or foreign citizens or foreign institutions too. Shareholders are the owners of a company.
Directors of a company are appointed to manage affairs of a company by shareholders of a company. Directors are not owners of any company. However, directors can also be shareholders and shareholders can also be directors.
Articles of Association
Articles of cooperation of a company define the rights and responsibilities of shareholders and directors. Articles from a company’s association can restrict share transfer to a private limited company.
The authorized capital of a company determines the price and number of a share which the company can issue to its shareholders.
Paid up Capital
Payment of a share capital of a company is the amount for which the shares were issued to the shareholder for which the shareholder was paid.
How do we help in the Share Transfer Process
eMindsCA.com can help you transfer the shares of a private limited company in approximately 2 to 3 weeks.
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To understand the background of the company before the start of a Business Expert process, review the company’s current shareholding and association of articles. The review will take 1 – 3 business days.
The documents needed to transfer shares from one person or organization to another company will be prepared by an expert. On the basis of complexity, documents will be prepared by specialist in 3-5 working days.
Depending on the share transfer documentation submitted to the company, an expert will help in accepting the transfer of share transfer and preparing necessary documents for issuing shares in 5-10 working days to the new shareholder.
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Frequently Asked Questions
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Outsourcing allows you to focus on your main business, not your support departments. Outsourcing gives your company access to a high level of expertise, where you will be able to spend normally.
Cost effectiveness– The salary of professionals is significantly lower than in North America and Europe. This wage turns into difference cost savings.
24/7 operation – Offshore development facilities located in India are in the perfect time zone to help you operate 24/7.
Large pool of talent– Retraining experienced staff becomes difficult when they are given boring and repetitive work. India offers you a cost effective talent pool that you can tap for reliable service delivery.
Best Practices– High focus on improvement in quality and continuous process, offshore development centers work on high level efficiency, forecast and reliability. High level maturity reduces risk and provides significant benefits while managing service level agreements.
Bookkeeping & Accounting
AR follow-up – Aging analysis and reports
Bank/credit card reconciliations
P&L, Balance sheet and other regular reports
Preparation of Tax returns
Insurance Accounting Services