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    Resident shareholders transfer holdings to one foreign entity

    Posted By : Abhishek Mishra / Published on : 11-Apr-2023 04:21 AM / View : 256 / Comment : 1

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    Hello All

    Want to know that if all the Resident shareholders transfer holdings to one foreign entity and in attachment of form FCTRS in pre-post shareholding if we shows two nominee shareholder of foreign body corporate also show the nominee shareholder in share purchase agreement and we have filed form FCTRS,
    Read more on : foreign entity holdings transfer shareholders resident

    • If all the resident shareholders of a company transfer their holdings to a foreign entity, then the foreign entity will become the majority shareholder of the company. In such a scenario, it is important to comply with the applicable laws and regulations related to foreign investment in India.

      Form FCTRS (Foreign Currency Transfer of Shares) is a form that needs to be filed with the Reserve Bank of India (RBI) by the company and the foreign investor, in case of transfer of shares from resident shareholders to a non-resident entity. The form requires details of the transfer, such as the consideration paid, the identity of the buyer and seller, etc.

      If the foreign entity has appointed nominee shareholders to hold the shares on its behalf, then these nominees must also be disclosed in the form FCTRS, along with their identity and other relevant details. In addition, the share purchase agreement between the resident shareholders and the foreign entity must also mention the appointment of these nominees and their role as beneficial owners of the shares.

      It is important to ensure that all the relevant disclosures are made in the form FCTRS and other relevant documents, and that all the applicable laws and regulations related to foreign investment in India are complied with.

      12-04-2023 / 09:22:33 AM
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