www.carajput.com; RBI FC-TRS
Transfer of shares for consideration:
- If you are transferring shares for consideration, then you need to file from FCTRS within 60 days of share transfer for which the brief of documents required is provided in the trailing mail.
List of Documents required to file form FC TRS with RBI:
- Buyer & Seller Consent Letter: we required a Consent letter for receipt/ transfer of consideration duly signed by the buyer & seller.
- Shareholding Pattern: shareholding pattern of investee company before & after the acquisition of securities by a person resident outside India.
- Needed the Transfer agreement: Relevant extracts of the transfer agreement along with the consent letter between buyer and seller. For sale/ purchase on a stock exchange, the contract note may be attached, at “Valuation certificate/ Transfer agreement”
- Transfer agreement/ Valuation certificate: valuation certificate as per FEMA 20 (R) to be attached at “Transfer agreement/ Valuation certificate”.
- Declaration from Buyer of Securities: Declaration from the buyer to the effect that he is eligible to acquire shares/compulsorily and mandatorily convertible preference shares/debentures under FDI policy.
- Declaration by the Non-resident: required the declaration from the non-resident transferee as per the format provided by the RBI in their SMF- user manual.
- Required company Board Resolution: Needed the Board Resolution of Investee Company to approve & ack the securities transfer.
- Needed Transfer Deed: we required (form SH 4) Securities Transfer Deed.
- Outward Remittance copy/FIRC: Outward remittance certificate FIRC & KYC to be attached at the specified attachment.
Transfer of shares without consideration:
- In this case, the approval of RBI is required, and it will take 1.5 months to 2 months time depending upon the AD Bank.
- After getting the RBI approval we need to file Form FCTRS with RBI for reporting the transfer of shares.
- In case you are transferring the shares without consideration then you need to comply with tax provisions as well which we can discuss later.
Transfer by way of gift by Resident to Non-Resident:
This requires prior approval of the Reserve Bank of India and such approval is subject to the following conditions:
- The applicable sectoral cap in the Indian company is not breached.
- The Donor & Donee shall be “relatives” within the meaning section 2(77) of the Companies Act, 2013;
- The Donee is eligible to hold such a security under foreign direct investment Rules as amended from time to time;
- The gift does not exceed five percent of the paid-up capital of the Indian company or each series of debentures.
- The value of security to be transferred by the transferor together with any security transferred to any Non-Resident as a gift during the financial year does not exceed the rupee equivalent of USD 50,000;
- Such other conditions as considered necessary in the public interest by the Central Government.
Please confirm your AD Bank also in the upcoming email.
List of Documents required to file form FCTRS with RBI:
The person can transfer the shares by way of a gift to his daughter. For the compliance part, we need to file from FCTRS with RBI.
The basic documents required for filing form FCTRS are :
- Declaration by Non-Resident Transferor or Transferee in the prescribed Format
- Consent Letter between both donor and done,
- Pre and post Transaction shareholding pattern
- Board resolution for Transfer of Shares
- share certificate and share transfer form
- Gift deed
Filling of filing FC-GPR form
Basic Requirements for FCGPR:-
1) Valuation Report
2) Company Secretary Certificate of Compliances
3) Digital Signature Certificate (DSC) of the Managing Director/Director/Secretary of the Company, who have been authorized for the purpose
4) Transaction Details viz. Scheme of Amalgamation, Copy of Order of Amalgamation, List of Shareholders, Board Resolution, and other Secretarial records relating to a transaction, etc.
1) Complete requirements would be provided once scheme of Amalgamation and List of Proposed shareholders comprising of Name, Complete Foreign Address, Constitution is provided
2) Requirements referred in 1 & 2 above may be complied with at our end on an additional fee if required.