Wednesday, November 7, 2012

Transferring shares with a stock transfer form

This post is for startups or any one who owns a company limited by shares. I got these information from the following website incase you need more information:
http://www.company-wizard.co.uk/help/Stock_Transfer_Form.aspx


You can transfer shares for a private limited company between new and existing shareholders provided that the relevant notice is issued. To transfer shares for a company you will need to obtain and complete a Stock Transfer Form and to complete the stock transfer form you will be asked to provide the following information:

• Consideration money (How much is being paid for the shares)
• Name of Security (e.g. 100 Ordinary Shares for XYZ LIMITED)
• Description of Security
• Number of shares transferred
• Name and address of transferor
• Name and address of transferee
• Authorising signature from both parties
• Declaration of Stamp Duty Liability

You can obtain a stock transfer form using the link below:
Stock Transfer Form - http://www.company-wizard.co.uk/eiw/forms/stocktransferForm.pdf

Please note that there is a stamp duty tax liability for all stocks/shares transferred. The liability at the time of writing is 0.5% of the consideration or nominal share value. Payments are made directly to the HMRC Stamp Office.
When completed the form should be delivered to one of the two HM Revenue and Customs Stamp Offices:

Birmingham Stamp Office                         Edinburgh Stamp Office
9th Floor                                                       HM Revenue & Customs
City Centre House                                        Edinburgh Stamp Office
30 Union street                                             68 Queen Street
Birmingham                                                 Edinburgh
B2 4AR                                                        EH2 4NF

Tel: 0845 603 0135
Fax: 0121 643 8381

Please note that for any new allotments or change in the denomination of issued share capital you will need to provide amended share certificates to the people concerned. You can generate a new share certificate using the following online wizard:
Share Certificate Wizard -  http://www.company-wizard.co.uk/resources/share_certificate.aspx

Any share transfers should be documented in the companies register and declared on the next annual return.

 Hope you find this helpful

No comments: