Share Transfer

Share transfer agreement in Bangladesh involve the legal process of transferring ownership of shares in a company from one party to another. Our business and corporate lawyers can help with for limited company share transfer.

share-transfer-services

What is Share Transfer?

Share transfer refers to the process by which a shareholder voluntarily gives up their ownership in a company to another person or entity. This transaction is governed by the company’s Articles of Association and must comply with legal requirements under the Companies Act of Bangladesh.

Share transfers commonly occur due to changes in business structure, new investments, partnership exits, or internal restructuring. It is vital to maintain accurate records and follow the legal formalities to avoid disputes or regulatory issues.

Why is Share Transfer Important?

Transferring shares helps businesses grow, onboard new partners, or restructure ownership without dissolving the company. A properly conducted share transfer ensures transparency, legal compliance, and protection for both buyer and seller. It also protects the interests of the company by allowing management to retain control over new shareholders through internal approval.

What services does ‘JK Associates’ provide regarding Share Transfer?

Document Preparation: We prepare the Share Transfer Deed, Board Resolutions, and all other necessary legal documents.
Regulatory Compliance: We ensure the process complies with the Companies Act and Registrar of Joint Stock Companies (RJSC) regulations.
Board Resolution Drafting: We help draft board resolutions and prepare necessary meeting minutes.
RJSC Filing: We submit the required forms and documents to RJSC for approval and record updates.
Legal Advisory: Our team offers guidance on restrictions, taxation, and ownership structuring based on your goals.
End-to-End Support: From consultation to completion, we handle the process smoothly on your behalf.

The Process of Share Transfer

The process typically includes:

Shareholder Agreement Review: Check company constitution and shareholder agreement for any restrictions or conditions.
Prepare Transfer Deed: Draft and sign Form 117 along with stamp duty payment.
Board Resolution: Conduct a board meeting to approve the share transfer.
Update Share Register: The company updates its register of members.
Filing with RJSC: Submit relevant forms to RJSC for official record.

Documents Required for Share Transfer

Signed Share Transfer Form (Form 117)
Copy of Board Resolution
Identification documents of transferor and transferee
Updated Memorandum (if required)

Things to Consider Before Transferring Shares

Check for any restrictions in the Articles of Association
Ensure board approval and legal compliance
Calculate applicable stamp duty
Document the change with RJSC

The share transfer services in Bangladesh involve the legal process of transferring ownership of shares in a company from one party to another. This process is governed by the Companies Act, 1994, and involves several key steps, including notifying the company, obtaining board approval, executing the transfer form (Form 117), and registering the transfer with the Registrar of Joint Stock Companies and Firms (RJSC).

Our business and corporate lawyers can help with drafting share transfer agreements, conducting due diligence, and advising on legal and regulatory requirements. They can also assist with the transfer of shares by ensuring that all necessary paperwork is completed and filed with the relevant authorities.

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Share Transfer FAQ

Share transfer is the process of transferring ownership of shares from one person (or entity) to another, usually with proper documentation and compliance with company law.

Yes, in most jurisdictions including Bangladesh, a stamp duty is applicable on the value of shares transferred. It must be paid to make the transaction legally valid.

Private companies typically have restrictions in their Articles of Association to control who can become a shareholder, so share transfer is subject to approval by the board.
Company Registration Process in Bangladesh