Share Transfer from NRI to NR
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 May 2011
Hello Friends,
My query can a NRI who is a shareholder of the pvt ltd company transfer its shares to foreign company if yes please tell me the procedure to be followed in such case?
Also if the after transferring shares that foreign company wants to give loan to such pvt ltd company then what are the compliances?
My query can a NRI who is a shareholder of the pvt ltd company transfer its shares to foreign company if yes please tell me the procedure to be followed in such case?
Also if the after transferring shares that foreign company wants to give loan to such pvt ltd company then what are the compliances?
27 May 2011
Yes the same can be done Here there will issues under Income tax and the same needs to be thoroughly examined before taking any decision.
Also some procedural requirements under FEMA such as filing of form etc need to be also done.
Anuj
0-9810106211
Also some procedural requirements under FEMA such as filing of form etc need to be also done.
Anuj
0-9810106211
29 May 2011
With due respect to CA. Anuj Guptaji's expert opinion, I understand following:
Scenario # 1
NRI acquired Shares when he was resident in India or inherited from a person who was resident in India:
Yes, the proposed transfer may be allowed (Section 6(5) of FEMA 99)
Scenario # 2
Acquired as NRI:
No, the proposed transfer of Share may not be allowed unless NRI obtains prior approval from RBI[Regulation 3 read with Regulation 9(1) and Regulation 9(2) of FEM (TIS) Regulation 2000]
Further, I feel that Loan from NR to Pvt Co may involve lots of issues and compliance. This needs to be examine.
Regards
CA Juzer
Scenario # 1
NRI acquired Shares when he was resident in India or inherited from a person who was resident in India:
Yes, the proposed transfer may be allowed (Section 6(5) of FEMA 99)
Scenario # 2
Acquired as NRI:
No, the proposed transfer of Share may not be allowed unless NRI obtains prior approval from RBI[Regulation 3 read with Regulation 9(1) and Regulation 9(2) of FEM (TIS) Regulation 2000]
Further, I feel that Loan from NR to Pvt Co may involve lots of issues and compliance. This needs to be examine.
Regards
CA Juzer
20 June 2011
Thanks Juzer for correcting me.Sorry for replying after so many days , as going really busy these days .
Anuj
Anuj
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- TAN for Partnership
- Sales return eway bill
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- E way bill for tractors
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Loan by Partnership Firm
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
