REPORTING OF FORM FC-TRS TO RBI

RBI Circular No. 40 dated 1^st February 2016; RBI has made it mandatory to report any transactions and filing of forms online in respect of issue and transfer of shares from an Indian Entity to outside India.

What is RBI Compliance under FORM-FC-TRS?

• Foreign currency transfer is the absolute full form of the Form FC-TRS.
• It is a process used by shareholders residing outside India who are residing in India or vice versa when transferring their shares.
• The FC-TRS form, together with the FC-GPR form, will be uploaded to its authorized dealer bank, which will send the very same form to the Reserve Bank Of India.
• Foreign investors can invest in Indian companies by purchasing/acquiring existing shares from Indian shareholders or from other non-resident shareholders.
• General permission has been granted to non-residents / NRIs for the acquisition of shares by way of transfer.
• Any transfer of shares takes place between a resident and a non-resident, the resident individual or the entity has to report the transaction to RBI by filing of Form FC-TRS online at https://www.ebiz.gov.in.
• The reporting of Form FC-TRS should be submitted to the AD category bank within a period of 60 days from the date of receiving the money.

For more reading: Legal documents required for running Business

What is the process of Form FC-TRS

a) Download form from Pre-filled Form FC-TRS from https://www.ebiz.gov.in

b)Fill the required details of the Investee Company

(i) Name of the Company

(ii) PAN of the Company

(iii) Address of the Company

(iv)Telephone Number of the Company

(v) Fax Number of the Company

(vi) Email ID of the Company

(vii) Main Business Activity of the Company as per the NIC Code  2008 series

c)Enter the details of the Buyer

(i) Name of the Buyer

(ii) Address of the Buyer

(iii) Telephone Number of the Buyer

(iv) Email ID of the Buyer

(v) Nature of the Investing Entity

(vi) Date and Place of Incorporation of the Investing Entity

d)Details of the Seller

(i) Address of the Seller

(ii) Telephone Number of the Seller

(iii) Email of the Seller

(iv) Name of the Disinvesting Entity

e)Enter the details of the Foreign Investment in the Company.

f)Mandatory Attachments

(i) Declaration by the Non-resident Buyer

(ii) KYC Form in respect of Non-resident Investor

(iii) Copy of FIRC (To be procured from Bank receiving the remittance)

(iv) Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker

g)Once the form is completed in all respects without any error; the Name, Designation, Place, and Digital Signature of the Declarant is to be attached

After following all the above steps the form is now ready to be uploaded on the Ebiz portal. Upon uploading the Form an “Application Number” is generated instantly and it can be used to keep a track of the status of the Form.

It has to be well kept in mind that merely uploading the Form does not mean that all the compliances have been fulfilled, the compliance shall deem to be complete only after approval by the Reserve Bank of India (RBI).

General Instructions for filling the FC-TRS

• The electronic form (Form) can be accessed from service landing page and can be filled offline
• If you choose “Load prefill data” option while opening the form, then some fields may get prefilled with data you have filled previously while applying for this service. You may change this data if you wish.
• The saved draft can be accessed later from “My Saved Drafts” section in Menu options. This draft is available for 3 months or until the form is submitted.
• Field marked with * are mandatory and needs to be filled in before a form can be submitted on e-Biz portal. You may not be able to leave some of the field’s blank in the e-Form.
• In case you wish not to enter data in a field, please input “NA” if it is a text/description field or a 0, if it is a numeric field.
• The e-form needs to be digitally signed using a digital signature by the applicant. If an applicant wishes to make any modifications to an already signed e-Form, right-clicking on the signature field and choosing “Clear signature” will enable editing of the form and any modifications can be made to the form

Electronic Attachments required for FORM FC-TRS :

Upload the file using the attached link and if you wish to remove any file, use the remove link.

• Reason for delay in submission: this attachment is required if the form is submitted after 30 days from the date of receipt of funds
• CS Certificate
• Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.
• Disclaimer certificate
• Statutory Auditor Certificate
• Board resolution
• LRN(Loan Registration Number) allotted
• Copy of FIPB approval (if required)
• Transfer of shares details, if applicable

If the investor and remitter are separate entities, Than Give the following documents:

• No objection certificate from the remitter for  the shares being allotted to the third party mentioning their relationship
• Letter from the foreign investor explaining the reason for making a subscription to shares by the remitter on his behalf
• Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter
• KYC report for the beneficiary

Any other attachments: Add any other document if required.

Step Required for Form FC-TRS

Following below step required for filling FC-TRS following below actions:

Step-1: Apply the registration for Business Users

Step-2: Logging in to the FIRM USER

Step-3: Signing in to the SMF and connecting to your workplace.

Step-4: Choose the type of return.

Step-5:  Selected common investment

Step-6: Specific information or details to be filed as required

Step-7: Details of particular Transfer as specified

Step-8: Complete details of Remittal as per specified required.

Step-9: Details of Shareholding pattern to be enter

Step-10: Submit an Online form

Verification required for FORM FC-TRS:

Enter the following details in this section:

1. Name of the Person
2. Place
3. Date of signing the electronic form
4. Designation.
5. Digital Signature of Authorized signatory of the investee company.

Complete RBI Revised Instructions on Unclaimed Deposits or Inoperative Ac in Banks- are mention here under : Link