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Transfer of Shares of Stocks

Transfer of Shares of Stocks

FileDocsPhil offers quality assistance on the Transfer of Shares of Stocks process.

Shares of Stocks in the Philippines

A stock is a type of investment that represents an ownership share in a company. If you own shares of stocks in a Philippine-registered company that is not publicly traded, this is considered as your personal property. Therefore, you cansellor transfer your share ownership to another individual, group, or organization. However, shares are intangible personal property, and the manner oftransferring ownershipis regulated by laws such as theRevised Corporation Code of the Philippines

TheBureau of Internal Revenue (BIR)andSecurities and Exchange Commission (SEC)are the government agencies that are involved when transferring shares of stocks. From acquiring anElectronic Certificate Authorizing Registration (eCAR)with BIR to filing aGeneral Information Sheet (GIS)with SEC.

Documentary Requirements

    1. Stock certificate. This certificate proves the ownership of the shares of stock and, hence, signifies your right totransfer the shares. The certificate is proof that you are the stockholder. The stock certificate includes information such as the numbered stock certificate, issuer corporation, number of shares, par value, and ownership limitations, if there are any.
    2. Electronic Certificate Authorizing Registration (eCAR).AneCAR, which is required by the Bureau of Internal Revenue (BIR) for non-PSE traded stocks, allows recording the transfer of stocks in the corporation’s book. In addition, the BIR will conduct an assessment of the Capital Gains and Documentary Stamp taxes to be paid.
    3. Proof of shares acquisition.BIR needs to establish how the shares are acquired so you may transfer them. Documentary evidence could be a Deed of Sale,Deed of Donation, Deed of Partition, or Subscription Agreement
    4. Audited Financial Statements (AFS) and other required documents by the Revenue District Office (RDO).Additional requirements may be required, depending on the nature of the transfer of shares.

Take note thatExtrajuducial Settlement of Estatedoes not only applies in real properties. It may be applied in personal properties such as shares of stocks. 

What makes the transfer of shares of stocks valid?

To avoid anymistakes, these are the three things that solidify the validity of the transfer of stocks:

  1. The stock certificate must be duly endorsed by the transferor (previous owner) to the transferee (new owner).
  2. The transferee must present the CAR to the corporate secretary.
  3. The transfer must be duly recorded in thebooks of the corporation.

How FileDocsPhil Can Help?

FileDocsPhil is a reputableservice providercomposed of a team of lawyers and professionals who have expertise and knowledge to help you with the transfer of shares of stocks. We ensure that all legal aspects of the transaction are handled correctly by providing excellent service in reviewing legal documents, ensuring that it is instituted in the Philippine laws and regulations, and securing necessary documents for efficient compliance. 

Need further information and assistance inAnnotation of Title? Talk to our team at  FILEDOCSPHIL  to know more about the requirements and process. Call us today at  (+63) 917 149 2337 or send an email to info@filedocsphil.comor simply message us through the live chat for more information.


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