Guide to transfer share for Singapore company
WHAT IS SHARE TRANSFER ?
Share transfer refer to the exercise of change in ownership in the Company.
HOW TO EFFECT THE SHARE TRANSFER ?
According to ACRA constitution :
Although there is silent about pre- emption right but the right to approve the shares transfer is on the hand of director now .
Directors’ resolution will needed to passed before effect the shares transfer with authority.
Transferor and Transferee will need to sign shares transfer form with the following detail information :
- Company name where the shares transfer will take place
- Transferor detail information
- Transferee detail information
- Number of shares to be transfer
- Agreed consideration price / selling price
- Witness signature for BOTH parties
HOW TO DECIDE SELLING PRICE ?
Decision on selling price is agreement between Transferor and Transferee There is no impact on company.
However , please note that selling price will have impact on stamp duties amount with IRAS .
HOW TO CALCULATE STAMP DUTIES WITH IRAS ?
IRAS will based on selling price and Net Asset Value ( which ever is higher ) to calculate stamp duties amount .
DUE DATE TO LODGE IN WITH IRAS AND ACRA ?
Company must effect the change with authorities within 14 days from the effective date