General procedure for transfer of shares
The transferor and transferee are required to execute a share transfer form under their common seals (if they are corporations) in accordance with their respective Constitution/Articles of Association.
2. The transfer is subject to ad valorem duty payable to the Commissioner of Stamp Duties (“Commissioner”). The current stamp duty payable on the transfer of shares is 20 cents for every S$100/- or part thereof of the consideration for the sale of the shares or the net asset value (“NAV”) of the shares, whichever is higher, based on the latest audited accounts of the companies.
The stamp duty is normally borne by the transferee.
3. For the purposes of computing the NAV and the stamp duty payable, the following documents will have to be submitted to the Commissioner: -
- duly executed transfer form
- IRAS E-stamping - Duty on share transfer (to be signed by a director of the company) - latest audited accounts
In addition, the Commissioner may request for further information and/or documents as he deems necessary for the purposes of the assessment of stamp duty.
If the transfer form is executed outside Singapore, it will have to be submitted for stamping within 30 days from the date of receipt in Singapore, otherwise a late penalty would be imposed by the Stamp Office. If the transfer form is executed in Singapore, it will have to be submitted for stamping within 14 days from the date of execution.
4. After the transfer form is duly executed and stamped, it is to be presented to the company for registration. Normally, the stamping date will be the registration date. At the same time, the old share certificate issued in the name of the transferor will have to be submitted to the company for cancellation.
5. The directors of the company may approve the transfer of shares by way of directors' resolutions...
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