Transfer of shares from resident to non resident
This query is : Resolved
30 July 2011
Can anyone provide me chcklist/procedure for transfer of shares from RI to NRI.
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
can anyone help pls.
Regards
P.C. Joshi
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
can anyone help pls.
Regards
P.C. Joshi
30 July 2011
This query is : open
P.C. Joshi
( Author )
30 July 2011
Can anyone provide me chcklist/procedure for transfer of shares from RI to NRI.
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs. 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
can anyone help pls.
Regards
P.C. Joshi
P.C. Joshi
( Author )
30 July 2011
Can anyone provide me chcklist/procedure for transfer of shares from RI to NRI.
In my case in an Indian company there are two shareholders(son and mother) in a Pvt. Ltd. co,having equal % of shares(total paid up Rs. 2 lacs). 100% FDI is allowed in its sector.
One of their relative owns a company in signapore. This company wants to buy 40% shares from the existing shareholders.
I have some queries.
1. The funds have been remitted by Singapore co. As per RBI notification the Authorised Dealer has to send KYC report to RBI.
What is the responsibility of Transferor i.e. Indian shareholders whom funds have been remitted with respect to KYC REPORT.
2. The AOA of the company provides that for trf. of shares the transferor to notify the company and shares shaqll be offered first to existing shareholders.
As there are only two shareholders and both of them are the transferors then who should they intimate.
3. The transferee is a company(NRI) who can execute the share transfer deed and other documents on its behalf.
can anyone help pls.
Regards
P.C. Joshi
30 July 2011
Hi Mr. Joshi.
the resp. of transferor (india Co.)
1. Transferor needs to file form FC TRS with RBI along with FIRC of receipt money and other necessary docs within 60 days of receipt of amount of consideration. It inculdes KYC (know your customer details )also.
2. in private companies before transfering shares to outside memeber the shareholdres needs to offer them to present member first as FRA (first right of acceptance). you can intimate in board minute that both share holders offered shares to each other as FRA but both expressed their unwilingness to buy and thus these are offered to the third party.
3. needs to prepare all necessary minutes and resolutions.
4. needs to ionform RBI about receipt of amount within 30 days in an intimation form
rest i will suggest you to read Master circular of FDI policy issued by RBI.
if you want forms FC TRS or intimation copy kyc format you can tell me your email id will try to mail u as much i can incudling FDI policy master circular.
I told all these on basis of my experience of handling teh similar case with my team.
hope i cleared some of your doubts
thanks.
the resp. of transferor (india Co.)
1. Transferor needs to file form FC TRS with RBI along with FIRC of receipt money and other necessary docs within 60 days of receipt of amount of consideration. It inculdes KYC (know your customer details )also.
2. in private companies before transfering shares to outside memeber the shareholdres needs to offer them to present member first as FRA (first right of acceptance). you can intimate in board minute that both share holders offered shares to each other as FRA but both expressed their unwilingness to buy and thus these are offered to the third party.
3. needs to prepare all necessary minutes and resolutions.
4. needs to ionform RBI about receipt of amount within 30 days in an intimation form
rest i will suggest you to read Master circular of FDI policy issued by RBI.
if you want forms FC TRS or intimation copy kyc format you can tell me your email id will try to mail u as much i can incudling FDI policy master circular.
I told all these on basis of my experience of handling teh similar case with my team.
hope i cleared some of your doubts
thanks.
Message likes :
2 times
31 July 2011
Yes I agree with Aditya Goyal. Shares are not easily transferable it requires permission from RBI
05 August 2011
Dear Sir,
As your point relating to procedure have already been discussed Please see your point wise answer w.r.t to your queries
(1) The responsibility is of the Indian shareholders as well.
(2) AOA is taken from some JV company. nothing is required to be done here
(3) Kindly get the Power of attoney in favour of director from the company in the form of resolution. That shall be suffieceint and director shall be able to sign all the required documents.
Hope this is fine.
Please be free to write further for any further clarification.
Regards,
CA. Sudha G. Bhushan
Sudhag99@gmail.com
As your point relating to procedure have already been discussed Please see your point wise answer w.r.t to your queries
(1) The responsibility is of the Indian shareholders as well.
(2) AOA is taken from some JV company. nothing is required to be done here
(3) Kindly get the Power of attoney in favour of director from the company in the form of resolution. That shall be suffieceint and director shall be able to sign all the required documents.
Hope this is fine.
Please be free to write further for any further clarification.
Regards,
CA. Sudha G. Bhushan
Sudhag99@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
