28 February 2017
If an Indian shareholder transfer his share to entity outside india which is already a shareholder then does transfer of consideration from outside entity to indian shareholder attracts FEMA or any other law? Does FEMA prohibit this transfer of are there any limits? Please reply asap. Thanks in advance :)
28 February 2017
Transfer of funds should be through approved banking channels as per FEMA. Share transfer requires approval of Govt/RBI. See the link for more details. https://www.rbi.org.in/Scripts/FAQView.aspx?Id=26#Q8
A company has to have minimum share capital of 100000. On account of this do have share capital of 900000 (Private placement). 3rd Shareholder(Indian individual) wants to transfer his share to 1st shareholder(outside india entity). Are there any restriction under FEMA to transfer share and received consideration?
CAclubindia
