What Are Transfer of Shares in a Private Company?
Transferring shares in a private company means moving ownership of some of the company from one person to another. Here's a simple breakdown:
What is it?
Transferring shares means changing who owns part of a private company.
Why does it happen?
Shares in a company represent ownership. People might transfer them for reasons like selling, giving as a gift, or passing them on as part of an inheritance.
How does it work?
To transfer shares, the person giving (transferor) and the person getting (transferee) need to fill out a transfer deed. This paper outlines the terms and conditions of the transfer.
4 Simple Steps to Transfer Shares in a Private Company
Transferring shares in a private company in Nepal is a simple process. Follow these four easy steps:
- Get a Transfer Deed
- Obtain Necessary Approvals
- Register the Transfer with the Office of The Company Registrar
- Update the Company's Records
1. Get a Transfer Deed
When you want to transfer shares in a private company in Nepal, you need a transfer deed. This is a written agreement between the person selling the shares (transferor) and the one buying them (transferee). It has to be done on stamp paper.
2. Obtain Necessary Approvals
You can't transfer shares without approval from the company's Board of Directors. The person buying the shares (transferee) needs to write a request to the Board asking for their approval.
3. Register the Transfer with the Office of The Company Registrar
Once the transfer deed is signed and the Board approves it, you have to register the transfer with the Office of The Company Registrar. Both the person selling and the one buying the shares need to give the transfer deed and other documents (like IDs and addresses) to the Company Registrar.
4. Update the Company's Records
After the transfer is registered, the company has to update its list of shareholders to show the new owner.
Reference:
https://companysewa.com/blog/transfer-shares-private-limited-company-nepal/