Transfer of Shares

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How to transfer shares in a private limited company

Share transfer is the process of transferring shares from one person (Shareholder) to another either by sales or by agreement. Transferring of shares in a right proportion to the shareholders is very important for any limited company. In order to transfer shares within a limited company, you need to file share transfer form to the Companies House. There are two parties involved in it – Transferor and transferee. Transferor means the person who is transferring the shares whereas transferee means the person to whom the shares are getting transferred. Both the parties (Transferor or transferee) need to complete the share transfer form in order to transfer shares. This information of share transfer is maintained in the company records. All share transfers takes place in the company register. Therefore, the company register should always be updated.

Every limited company must maintain an accurate, efficient record of share transfers and regularly update its company register. Any changes in shareholder details should also be reported to Companies House when filing the confirmation statement.

Scenarios in which shares are transferred within a UK limited company

Limited company shares can be sold to another person or corporate entity or it can also be transferred by changing the existing proportion of shares between the shareholders. The scenarios in which shares are transferred within a UK limited company are as follows –

1. In case you want to transfer shares from an existing shareholder to another.
2. In case you want to make changes in the existing proportion of shares between the shareholders.
3. In case you appoint a new shareholder and then transfer shares or change the proportion of shares.
4. In case you appoint other company as a shareholder and then transfer shares or change the existing share structure.

Documents you must provide to Transfer limited company shares

1. Company name & its registration number
2. Quantity of shares to be sold
3. Classes of shares to be sold
4. Name & address of the transferor (existing shareholder)
5. Name & address of the transferee (New shareholder)
6. Amount paid or unpaid on each unit
7. Authorized signature of company director
8. Non-cash payment details (if applicable)
9. Stamp duty liability (If applicable)

How FinacBooks help in transferring of shares?

FinacBooks is a leading UK portal providing accounting, finance & taxation services to freelancers, contractors, consultants and small businesses. We are having more than 10 years of experience helping small businesses in transferring shares b/w the shareholders. We will guide you through the entire process of transferring shares. To avail the best deals on transferring shares, kindly call us at 03300886645 or you can also e-mail us at business@finacbooks.com