What is transfer shares of a private limited company
The transfer of shares of a private limited company refers to the process of transferring ownership of shares from one person to another.
In a private limited company, the shares represent ownership in the company, and the transfer of shares results in a change of ownership of a portion of the company.
The transfer of shares can occur for a variety of reasons, such as the sale of shares by one shareholder to another, the transfer of shares as a gift, or the transfer of shares as part of an inheritance.
In order to transfer shares in a private limited company, the transferor (the person transferring the shares) and the transferee (the person receiving the shares) must execute a transfer deed, which outlines the terms and conditions of the transfer.
How to transfer shares of the private limited company in Nepal
To transfer shares of a private limited company in Nepal, the following steps can be followed:
- Obtain a transfer deed: The transfer of shares in a private limited company in Nepal requires a transfer deed to be executed between the transferor and the transferee. The transfer deed should be in writing and should be executed on stamp paper.
- Obtain necessary approvals: The transfer of shares in a private limited company requires the approval of the company's Board of Directors. The transferee should submit a written request to the Board of Directors, seeking their approval for the transfer of shares.
- Register the transfer with the Company Registrar: Once the transfer deed is executed and the necessary approvals are obtained, the transfer should be registered with the Company Registrar in Nepal. The transferor and the transferee should submit the transfer deed along with other necessary documents, such as proof of identity and address of both parties, to the Company Registrar.
- Update the company's register of shareholders: After the transfer of shares is registered with the Company Registrar, the company should update its register of shareholders to reflect the change in ownership.