Transfer Of Shares Of Singapore Private Limited Company

This article will give you a detailed overview of the procedures and requirements for the transfer of shares of Singapore private limited company.


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    transfer of shares of singapore private limited company

    Shares and debt instruments are considered transportable assets in Singapore. They can be transferred under the requirements of the firm’s establishment and the Corporations Act. Instead of issuing new equity, you can transmit your current shareholdings to new beneficiaries as the proprietor or shareholder of a corporation in Singapore. This could be for professional or personal motives.

    The Accounting and Corporate Regulatory Authority (ACRA) and the Companies Act have established the rules and laws that apply to the transfer of shares in a Singapore private limited company, which is frequently happening.
    This article will give you a detailed overview of the procedures and requirements for the transfer of shares of Singapore private limited company.

    Transfer Of Shares Of Singapore Private Limited Company

    The consensual transference of the rights and responsibilities of members of the organization as symbolized by interests is referred to as an issue of shares.

    A transferrable ownership structure is among the most prominent factors of a Singapore private limited company

    The investors may be considering selling their stock for a myriad of purposes, including:

    • They were granted assets in conjunction with an employee stock ownership plan and the corporation urges them to sell the shares prior to accepting a new position.
    • Perhaps they are the firm’s originator and want to recoup their investment and communicate with external investors to generate funds for expansion or to completely depart the organization.
    • They possess a minority ownership in the business and are currently attempting to recover their investment’s worth.

    When shareholders move their money, they must take the following processes and submit the balance business rates. This protects you from being charged with neglecting to perform your responsibilities as a member of the transaction is questioned as unlawful. Furthermore, boards are frequently investors in private corporations.

    Need to Transfer Shares

    The following are some of the reasons why one might need to transmit shares in a Singapore Private Limited company:

    • In exchange for funds or commodities, you must distribute securities to the public.
    • You want to enlist the help of new crucial key suppliers by space provided to them.
    • You hold a little portion of the corporation and would like to discover how much it will be valued.
    • The stock is given to you as part of an employee stock ownership plan. And you’d like to convert your stock while going back to work or firm.
    • You would like to give part of your interests as a present to friends and family members.

    Persons involved in the transfer of shares

    In most cases, the following people are involved in the transport of interests in a Singapore private limited company:

    • The initial investor who wishes to transmit shareholdings is known as the recipient.
    • Each purchaser or transferor is referred to as an acquirer.
    • Organization
    • The founding stockholders in your private limited business are the participants in the document.
    • A legal advisor is hired in the situation of mortality.

    Documents Required For Transfer Of Shares In Singapore

    When transferring your assets, you must have the supporting information:

    • Instrument of Transfer: A contract between the transferor and the recipient.
    • Share Transfer Form: This is an official record that includes information about the shares that are being transferred, including the transferor and transferee’s names, the number of units being transferred, etc.
    • Notice of Transfer: A paperwork sent to ACRA to renew your firm’s membership’ registration.
    • Transfer request: The documented request you submit to the management board seeking share transfer authorization.
    • Board Resolution: When a corporation is a transferor or the transferee, a board resolution is necessary. The directors of the business need to sign the paperwork which authorises the exchange of stocks.
    • Share Certificate: The possession of the assets is shown in the formal agreement.
    • Payment of Stamp Duty: To transfer your assets, you must send a fee to IRAS.

    Procedure for the transfer of shares in Singapore

    The procedure for the transfer of shares in Singapore is divided into the following steps:

    1. Company-level restrictions on transferring shares

    You must examine the following aspects before transferring shares in Singapore Private Limited Company:

    Sign contracts and decide on a purchase price:

    The initial stage is to reach a transfer of securities contract. To officially begin the framework that describes, both participants must sign the Agreement of Share. If you agree to the deal with a corporation, they must validate it with the Common Seal. The price at which your stock is sold is also an essential consideration. In most cases, the price should be agreed upon ahead of time and indicated in the agreement.

    Discuss the limitations imposed by your corporation:

    You should check with the management before the time to determine if there are any restrictions on the shareholdings among investors.

    Shareholders should be aware of their anticipatory privileges:

    Pre-emptive Holdings are one of the most critical things to consider before selling your stock. Other investors in your organization will have first preference in obtaining your transferable assets if you have such privileges. You must first promote the assets you intend to transfer to company investors before making them available to competitors.

    You must issue a notice to other investors informing them that you are selling your securities to the public and allowing them to utilize their pre-emptive privileges. Other shareholders will sign an Agreement for Withdrawal of Pre-emption Holdings if they are not enthusiastic about your proposal. 

    After acquiring these authorization documents, you are ready to proceed to the next step.

    2. Making the share transfer application 

    You’ll start applying for transference authorization and paying the income tax at this point.

    Submit a request for permission transmission:

    If you’re a transferor, you’ll submit an application to the management board. The committee has the authority to deny your application under suitable conditions. Arguments or misunderstandings among firm stockholders, for example.

    Sales tax must be paid:

    A tariff is a tax charged on the purchase of real estate, such as stock or holdings. You must pay business rates to IRAS within 2 weeks of the Memorandum of Transfer’s completion. If your Memorandum of Transfer’s completion is registered outside of Singapore, it will take a month. Payments can be made immediately to IRAS or digitally. In addition, fines may be imposed if tax payments are not made on time. Business rates are 0.2% of the share purchase cost or the marketplace value of the shares, whichever is larger, in terms of the charge.

    3. After the board has approved the share transfer

    Until your transfer is complete, there are a few additional things to do.

    Withdraw your share certificate by following these steps:

    A company certificate serves as documented proof of ownership. Its primary purpose is to provide legal evidence of company shares. A share registration will be prepared and issued by your compliance officer. You must return your certification to the secretariat for termination if you transfer all of your interests. If you merely transmit a portion of your shares, however, you and the assignee will both obtain a new certificate. You have between a week to a month from the time you submit your request form to complete this.

    The ACRA needs to be updated:

    The company must notify the ACRA in Singapore of the issuing of the certificate by submitting a Notification of Transmission. Keeping one of the latest details on the firm’s ACRA membership is a requirement for all enterprises. Whenever ACRA has modified the online archive of your company members, your transaction will enter into force. Your business secretary is generally in charge of ACRA updates.

    Receive a new certificate of ownership:

    The transmitting process is completed when a new Share Certificate is issued. This must be completed within a month after ACRA updates the registration of your members of the organization, and it must be completed by the compliance officer.

    Cost of Transferring Shares In Singapore

    ACRA does not require payment to update the firm’s membership list. There should be no payment for the corporation to execute the share transfer. For securities, however, business rates are due to IRAS. At a rate of 0.2%, stamp duty is determined using the greater of the real price received for the interests or the original price of the stock.

    The exact price per share is computed by dividing the firm’s asset value by the outstanding shares in circulation. Certification of certificates must be completed as quickly as feasible. IRAS may assess a fee of up to $25 or four times the standard business rates charged, whichever is larger, in circumstances of late processing.

    Although the investors must pay business rates rather than the companies, the executives should be aware of their need to operate truthfully and with reasonable effort. If the country’s success and revenue are harmed as a consequence of poor advice distributed to shareholders in this circumstance, the directors may be in violation of this obligation.

    Instrument of Transfer

    The Instrument of Transfer is a legal record that certifies both the transferor’s and the transferee’s consent to transfer and receive the shares. The paper must be signed in front of a witness additionally. If business organizations are signing the Instrument of Transfer, they must verify the paperwork by using their common seal.

    The Instrument of Transfer might need to be modified if either the transferor or the transferee is an overseas corporation.

    Working Sheet for Transfer of Shares

    The business must create the Working Sheet using either its most recent accounting records or its most recent audited financial statements. It is paperwork pertaining to the share transfer that IRAS requested. The Working Sheet is helpful in calculating the stamp duty due on transferred shares.

    The price that was paid when the shares were purchased or their market worth, whichever is greater, is used to determine the duty.

     The document includes details regarding:

    • Overall assets
    • Total obligations
    • The overall number of shares issued 
    • Transferred share volume


    To summarise, selling assets in a Singapore private company can be more difficult than transferring shares in a public firm. Ensure you get everything double-checked, especially pre-emptive privileges, before approaching the committee for authorization. Know how to pay the business rates to IRAS and verify your details with ACRA after obtaining approvals. 

    Our company registration services at OnDemand International are always available to help you with share transfers in Singapore. We take care of all the tedious, time-consuming documentation and procedures for you.


    In most cases, you or your acquirer must name the individual who is accountable for the transaction in the Certificate of Title. If there is no reference to obligation payments, the purchaser will accept responsibility for it. Within a month of the equity exchange, the recipient must estimate and pay tariffs.

    While an individual can freely transmit assets in their ownership in a public corporation if they follow the instructions, a private business’s Memorandum of Incorporation must prohibit the capability to transfer assets.

    A share transfer is a process of transferring current shares, either through a sale or a gift, from one shareholder to another.

    Shareholders of the Private Limited Company might be contemplating selling their shares for a number of factors, including,

    • Possessing a modest ownership stake in the company and seeking to recover their investment’s worth.
    • They would want to give friends and relatives a portion of your shares as a gift.
    • Perhaps they are the firm’s founders and are prepared to offer their stock to other investors to generate money for growth or to completely leave the business.

    The payment of stamp duty is required when shares in a Singapore private limited company are transferred for an exchange. The amount of stamp duty is 0.2% of the purchase price or the stock’s net asset worth, whichever is greater.