You can easily complete Dematerialisation of Company Shares firm registration online through Compliance Gurukul. For a sole Dematerialisation of Company Shares registration, only the PAN & Aadhaar card of the business owner is required. We can help you obtain the following registrations in less than 15 days:
Once, you have registered for the Dematerialisation of Company Shares firm registration online on Compliance Gurukul, please follow the steps below and upload the following documents by logging into Compliance Gurukul Software.
Dematerialisation is the process of transferring physical shares into a digital account, known as a Demat account, which simplifies managing and trading shares. Converting physical shares to Demat enhances security, reducing the risks associated with physical shares like loss or theft. It also makes trading faster and more efficient and simplifies share management. Previously required mainly for public companies, the dematerialisation process is now mandatory for private limited companies. All private limited companies, except small ones must convert physical shares to Demat by September 30, 2024.
In October 2023, the Ministry of Corporate Affairs (MCA) introduced an amendment to the Companies (Prospectus and Allotment of Securities) Rules 2014, known as the Companies (Prospectus and Allotment of Securities) Second Amendment Rules 2023. This amendment included the addition of Rule 9B, which now requires all private limited companies, except small and government companies, to dematerialise their securities.
Converting physical shares to a Demat (dematerialised) account offers several compelling advantages for shareholders and companies alike:
Dematerialization eliminates the risks associated with physical certificates, such as theft, loss, or damage. Electronic shares are securely stored in a digital format, reducing the potential for fraud.
Buying and selling shares become significantly quicker and easier when they are held in a Demat account. This streamlined process enhances the efficiency of trading activities, making it possible to execute transactions at the click of a button.
Handling physical documents often involves higher costs due to stamp duties, handling charges, and other overheads. Dematerialisation reduces these expenses, as electronic records do not incur such costs.
Managing a Demat account is simpler compared to handling physical papers. Shareholders can access their holdings anytime and from anywhere, using online platforms provided by their depository participants.
Corporate actions like dividends, stock splits, and bonus issues are automatically updated in the Demat account, ensuring shareholders always have up-to-date information and receive their entitlements without any need for physical intervention.
Shares held in Demat form can easily be pledged as collateral to secure loans, often facilitating quicker loan approvals compared to physical shares.