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Filing of e form FCTRS in case of transfer of shares under FEMA

About of Service

  • Consultation and Advisory:

    • Providing expert guidance on FEMA regulations and procedures related to the transfer of shares by non-residents or between residents and non-residents.
    • Advising on compliance requirements and documentation needed for filing e-Form FC-TRS.

  • Documentation Preparation:

    • Assisting in the preparation and compilation of necessary documents such as share purchase agreements, board resolutions, and KYC documents of transferor and transferee.

  • e-Form FC-TRS Filing Preparation:

    • Compiling and organizing all required information and documents in the prescribed format for e-Form FC-TRS.
    • Ensuring accuracy and completeness of data before submission.

  • Online Submission Facilitation:

    • Facilitating the online submission process of e-Form FC-TRS through the RBI's dedicated portal.
    • Monitoring the submission process to ensure timely filing within regulatory deadlines.

  • Verification and Compliance Assurance:

    • Conducting verification of data and documents to ensure they adhere to FEMA guidelines and regulatory requirements.
    • Providing assurance on compliance with all necessary regulatory aspects for share transfers under FEMA.

  • Follow-up and Resolution Management:

    • Monitoring the status of FC-TRS filing, addressing queries promptly, and facilitating communication between clients and RBI authorities as necessary to resolve any issues.

  • Training and Awareness Sessions:

    • Conducting training sessions for client teams to enhance understanding of FC-TRS filing requirements and keep stakeholders informed about regulatory updates affecting share transfers under FEMA.

  • Customized Solutions and Strategic Advice:

    • Tailoring services to meet specific organizational needs, offering strategic advice on optimizing share transfer structures, tax implications, and risk mitigation strategies.

    • Uses and Benefits
    • Consultation and Advisory Services: We offer expert guidance on FEMA regulations for share transfers involving non-residents, ensuring clients understand and comply with all regulatory requirements.
    • Documentation Preparation: We assist in preparing necessary documents such as share purchase agreements, board resolutions, and KYC documents of transferor and transferee required for e-Form FC-TRS filing.
    • e-Form FC-TRS Filing Preparation: Our team compiles and organizes all information and documents accurately in the specified format for seamless submission of e-Form FC-TRS to RBI.
    • Online Submission Facilitation: We facilitate the online submission process of e-Form FC-TRS through RBI's portal, ensuring timely filing within regulatory deadlines.
    • Verification and Compliance Assurance: We verify data and documents to ensure strict adherence to FEMA guidelines, providing assurance on compliance with all regulatory aspects for share transfers
    • Follow-up and Resolution Management: We monitor the filing status of FC-TRS, promptly address queries, and facilitate communication with RBI authorities to resolve any issues efficiently.

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    Charges Structure & Our Scope of Work

    Additional Disclosure

    1. Overview of e-Form FCTRS:

    • Purpose: To report the transfer of shares from or to foreign entities or individuals, ensuring compliance with FEMA regulations.
    • Regulatory Basis: Reference to FEMA, 1999, and the RBI guidelines related to foreign direct investment (FDI) and share transfers.

    2. Company Details:

    • Name and Address:
      • Company Name: Full legal name of the Indian company whose shares are being transferred.
      • Registered Office Address: Complete address of the company's registered office.
    • Company Identification Number (CIN): The unique CIN assigned to the company by the Ministry of Corporate Affairs (MCA).

    3. Transferor Details:

    • Transferor Information:
      • Name: Full name of the transferor (individual or entity) selling or transferring the shares.
      • Country of Residence: Country where the transferor is located or domiciled.
      • Address: Registered address of the transferor.
      • PAN or Other ID: PAN or other identification details if the transferor is an Indian resident; or relevant identification if a foreign entity.

    4. Transferee Details:

    • Transferee Information:
      • Name: Full name of the transferee (individual or entity) acquiring the shares.
      • Country of Residence: Country where the transferee is located or domiciled.
      • Address: Registered address of the transferee.
      • PAN or Other ID: PAN or other identification details if the transferee is an Indian resident; or relevant identification if a foreign entity.

    5. Share Transfer Details:

    • Transfer Information:
      • Date of Transfer: The date on which the shares were transferred.
      • Number of Shares: Total number of shares being transferred.
      • Share Details: Description of the shares being transferred, including class and nominal value.
      • Transfer Price: The price at which the shares were transferred, in foreign currency and Indian rupees.

    6. Compliance with FEMA Regulations:

    • Regulatory Compliance:
      • Adherence to Guidelines: Confirmation that the transfer complies with FEMA regulations, sectoral caps, and RBI guidelines.
      • Approval Details: Information on any prior approvals obtained from RBI or other regulatory authorities, if applicable.

    Terms & Conditions

    Documents & Detail Required

  • Share Transfer Documents:

    • Share purchase agreement or share transfer agreement detailing the terms of transfer between the parties involved.

  • Board Resolutions:

    • Resolution passed by the board of directors of the Indian company approving the transfer of shares.

  • KYC Documents:

    • Know Your Customer (KYC) documents of the transferor (seller) and transferee (buyer), including:
      • Passport or any other valid government-issued identification proof.
      • Address proof (utility bills, bank statements, etc.).

  • Valuation Report:

    • A valuation report by a registered valuer, if applicable, providing the valuation of shares being transferred.

  • Foreign Inward Remittance Certificate (FIRC):

    • FIRC issued by the authorized bank confirming the receipt of funds from the transferee for acquiring shares.

  • Shareholding Pattern:

    • Updated shareholding pattern of the Indian company post-transfer, reflecting the changes resulting from the share transfer.

  • Other Supporting Documents:

    • Any other documents as required by RBI guidelines or specific instructions for the particular type of share transfer under FEMA.

    • Please Note Down Your Querie

    OUR REVIEW

    FAQ'S

    What is e-Form FC-TRS?

    e-Form FC-TRS is used for reporting the transfer of shares or convertible debentures between a resident and a non-resident or vice versa under FEMA guidelines.

    Who needs to file e-Form FC-TRS?

    Any Indian resident or non-resident individual or entity involved in the transfer of shares or convertible debentures in an Indian company is required to file e-Form FC-TRS with RBI.

    What documents are required for filing e-Form FC-TRS?

    Required documents include share purchase agreements, board resolutions approving the transfer, KYC documents of transferor and transferee, and Foreign Inward Remittance Certificate (FIRC) confirming the receipt of funds.

    When should e-Form FC-TRS be filed?

    It must be filed within 60 days from the date of receipt of funds or within 60 days from the date of transfer of shares, whichever is earlier.

    Can e-Form FC-TRS be filed online?

    Yes, e-Form FC-TRS must be filed online through the RBI's dedicated portal for FC-TRS filings.

    What happens if there are errors in the filed e-Form FC-TRS?

    Errors can be corrected by filing a revised e-Form FC-TRS within a specified time frame, ensuring accuracy to avoid delays or penalties.

    Are there any exemptions or relaxations for filing e-Form FC-TRS?

    Certain categories of share transfers may be exempt from filing e-Form FC-TRS. It's advisable to check FEMA regulations and RBI guidelines for specific details.