What is Share Transfer?
A share transfer refers to the process of transferring ownership of shares from one person or entity to another. This can happen between:
⇒ Resident to Non-Resident
⇒ Non-Resident to Resident
⇒ Non-Resident to Non-Resident (in Indian companies)
Whenever a non-resident is involved, the transfer becomes subject to FEMA (Foreign Exchange Management Act) and must be reported to the Reserve Bank of India (RBI).
Key RBI Filing: Form FC-TRS
📌 When is Form FC-TRS Required?
Form FC-TRS must be filed when shares of an Indian company are transferred:
⇒ From a Resident to a Non-Resident
⇒ From a Non-Resident to a Resident
Must be filed within 60 days of transfer or receipt of consideration.
Documents Required for FC-TRS Filing
1) Share Transfer Agreement or Consent Letter
2) Valuation Report
⇒ By Chartered Accountant / SEBI Registered Merchant Banker / Registered Valuer
3) KYC Report of Foreign Investor
4) From their overseas bank
5) FIRC (Foreign Inward Remittance Certificate) – if consideration is received from abroad
6) Declaration by Transferor and Transferee
7) Board Resolution (if required)
8) Shareholding Pattern Before and After Transfer
How to File FC-TRS (Step-by-Step)
1) Register Business & User on the RBI FIRMS Portal
2) Login and Select ‘Form FC-TRS’ under Single Master Form
3) Fill in Details:
⇒ Transferor & Transferee details
⇒ Company details
⇒ Share details and pricing
4) Attach Required Documents
5) Submit Form
⇒ Form is processed by the Authorized Dealer (your bank) and RBI
Why Share Transfer Filing is Important
✅ Mandatory under FEMA – Avoids penalties and ensures compliance
✅ Legal Ownership Proof – Registers the change with regulators
✅ Smooth Future Transactions – Required for exits, funding, or repatriation
✅ Investor Confidence – Shows transparency and good governance