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Transfer to a foreign individual

Sandeep (cars) (38 Points)

15 December 2009

Hi all,

having to transfer shares of an indian Pvt Ltd to a foreign individual acting as a natural person, what are the documents that are needed to be filed? FDI regulations seem to be silent on this regard. Can anyone please clarify?

Thanks and compliments for the great job you are doing here.

S. M.

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3 Replies

Kumar (Legal Consultant) (358 Points)
Replied 16 December 2009

Dear Sandeep,

First of all let us know under what route your company has been established,whether under FIPB route or under automatic route.Kindly have a look and confirm.If your company is under FIPB route approval then you have to take prior approval otherwise no prior approval required for the automatic route approved activities of your company for tranfering Indian Company shares.Kindly use for FC-TRS for transfering Indian Company shares.

For detail please go through the Master Circular issued by the RBI for the year 2009-10.

Thanks & Regards

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Sandeep (cars) (38 Points)
Replied 16 December 2009

Dear Kumar,

thanks for yor reply. The company has been established via automatic route. Now they are proposing to transfer 1% of shares to a foreign individual. My wonder lies upon which documentation the foreigner individual might be called up to produce/attach to the transfer form or to the Form FC-TRS (authenticated copy of the passport, certificate or residence... else?) or if nothing is required (save as for his signature).

Thanks again.

Originally posted by :Kumar

Dear Sandeep,
First of all let us know under what route your company has been established,whether under FIPB route or under automatic route.Kindly have a look and confirm.If your company is under FIPB route approval then you have to take prior approval otherwise no prior approval required for the automatic route approved activities of your company for tranfering Indian Company shares.Kindly use for FC-TRS for transfering Indian Company shares.
For detail please go through the Master Circular issued by the RBI for the year 2009-10.
Thanks & Regards

Kumar (Legal Consultant) (358 Points)
Replied 16 December 2009

Dear Sandeep,

I would request you to kindly once go through the Form FC-TRS,in the form you will find the details of documents what all required.Also at the same time request you to kindly discuss with your Authorised Dealer/Banker where the proposed money of such transfer is coming.

Apart from the documents what all is there to be required in the form,you have to adduce an additional documents called declaration unedr press note 1 from the foreigner to whom shares is going to be transfered.

Kindly get on this forum for any further clarification. Will be happy to help you.

Thanks & BR