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Transfer of share against technology

445 views 1 replies

Sandeep

cars

38 Points Joined February 2009

Hi all,

i have to transfer my 20 % shareholding in a indian company to a foreign company. The foreign company would pay my 20 % not in cash, rather by way of transferring me its technical informations (formulas, etc).

My query is whether i can simply transfer my shares to the foreign company with no real transfer of money or a "real" transfer of money to my account in india is needed?

Should i prepare and draft the Form FC-TRS to be lodged with the AD ?

Thanks to all.

Sandeep

Replies (1)

Rasesh

CS CWA MBA (Fin) B.Com LL.B (Spl)

6501 Points Joined March 2007

In my view, FC-TRS will not be filed. There is no allotment of shares to Foreign company. It is transfer of shares. However, plese check the FEMA guidelines. I am not aware if there are any restrictions on transfer of shares of indian company for non-cash consideration.