transfer of shares

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Radhika Singhal (Querist)
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26 May 2011 There is an indian company named ABC (P) Ltd. with three members A , B & C with equal number of share holding i.e. one - third holding by each of them.All the three members have purchased these shares in their own name. A & B are non residents whereas C is a resident . A& B also have their shareholding in foreign companies too namely A (p) Ltd and B (p) Ltd respectively. A & B want to transfer their shareholding in ABC (p) Ltd. to their foreign company i.e, A want to transfer its shares to A (P)Ltd and B want to transfer its shares to b (p) ltd. Is that Possible???? if yes what is the procedure?????

Jayashree S Iyer

Jayashree S Iyer (Expert)
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27 May 2011 Check the provisions contained in the Articles of Association of the company. In the absence of anything to the contrary, A & B can transfer their shares to A (P) Ltd. and B (P) Ltd. For this Share Transfer Form No.7B duly signed and stamped by the transferor and the transferee must be presented to the Company and the Company should effect the share transfer within 60 days and make necessary entries in the Register of Members.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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27 May 2011 Here there will issues under Income tax and the same needs to be thoroughly examined before taking any decision.

Also some procedural requirements such as filing of form FCTRS etc need to be also done.
Anuj
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