Why Every Shareholder Needs a Nominee Under the Companies Act...

Nomination is the easiest and reliable way to protect your family’s rights over your shares after your lifetime.

Written by CS Deepak Sharma

(Company Secretary, LL.B & M.Com)

(M.) +9873 99 7776, Email: csdeepaksharma10@gmail.com

New Delhi, Published by Deepak, 7 November 2025, Friday, 4:40 IST

What Is Nomination?

Nomination is a legal right of a shareholder to nominate a person, who will receive their shares in the event of their death. This helps the business select a legal representative and prevents misunderstandings and disagreements between multiple members.

What Happens Without a Nominee?

Your heirs need a succession certificate or a court probate, which can be stressful and take months or years, if you don’t nominate a person. Affidavits, indemnity bonds, and NOCs from other heirs are also needed. In case of valid nominee, the company can transfer the shares within 30 days after receiving the death certificate and share details.

Benefits of Having a Nominee

 1.  Smooth transfer: To avoid legal delays, shares can be transferred within 30 days.

 2.  No legal challenges: No need for succession certificates NOCs.

 3.  Family security: Removes conflicts and ensures rightful ownership.

 4.  Manageable and costless process: Filing Form SH 13 or SH 14 is quick and free.

 5.  Legal promise: Completely protection under Section 72 of the Companies Act 2013.

 Steps of Nomination

Fill Form SH 13 and submit to the company with a covering letter. 

The company will confirm via email after updating the Register of Nominations. 

Joint shareholders can nominate an individual, and minors can also nominate themselves by providing the guardian's information.

NRI Nominee Option

 A shareholder may also nominate a Non-Resident Indian, as per FEMA and RBI rules. 

The Non-Resident India (NRI) must submit a valid identification, PAN or Form 60, and an NRE or NRO account.

In short

Nomination process is a simple legal action that ensures the smooth transfer of your shares in case of death. It protects your family from difficult legal formalities, disputes, and heavy expenses. By filing Form SH 13, you can nominate an individual, including an NRI or a minor.  This promise under Section 72 of the Companies Act 2013 guarantees effortless and transparent transfer of ownership. 

File nomination form now to ensure your family's peace of mind.

For further clarification queries regarding setting up any business entities, you may contact: 

CS Deepak Sharma

(Company Secretary, LL.B & M.Com)

(M.) +9873 99 7776, Email: csdeepaksharma10@gmail.com