Applicability of fema or any other law
This query is : Resolved
28 February 2017
If an Indian shareholder transfer his share to entity outside india which is already a shareholder then does transfer of consideration from outside entity to indian shareholder attracts FEMA or any other law? Does FEMA prohibit this transfer of are there any limits? Please reply asap.
Thanks in advance :)
Thanks in advance :)
28 February 2017
Transfer of funds should be through approved banking channels as per FEMA. Share transfer requires approval of Govt/RBI.
See the link for more details.
https://www.rbi.org.in/Scripts/FAQView.aspx?Id=26#Q8
See the link for more details.
https://www.rbi.org.in/Scripts/FAQView.aspx?Id=26#Q8
28 February 2017
Are these restrictions same for section 8 company? Section 8 company share transfer requires approval of RBI?
28 February 2017
Section 8 company don't have any share capital.
01 March 2017
Sir,
A company has to have minimum share capital of 100000. On account of this do have share capital of 900000 (Private placement). 3rd Shareholder(Indian individual) wants to transfer his share to 1st shareholder(outside india entity). Are there any restriction under FEMA to transfer share and received consideration?
Thanks in advance.
A company has to have minimum share capital of 100000. On account of this do have share capital of 900000 (Private placement). 3rd Shareholder(Indian individual) wants to transfer his share to 1st shareholder(outside india entity). Are there any restriction under FEMA to transfer share and received consideration?
Thanks in advance.
01 March 2017
No restriction approval may be required see the link for more details.
01 March 2017
Thank you so much sir. But there is no link below your reply.
01 March 2017
See the link provided already above.
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