Procedure For Filling Form FCTRS
FC-TRS
Meaning of Form FC-TRS: The literal meaning of Form FC-TRS is Foreign Currency Transfer of Shares. This form is filed in case of transfer of shares of an Indian Company from a resident to a Non-Resident/Non-Resident Indian or body corporate outside India and vice versa through its authorised dealer bank (AD Category-1 Bank)
Time Limit: The form FC-TRS shall be filed with the Authorised Dealer bank within Sixty days of transfer of capital instruments or receipt/remittance of funds whichever is earlier.
Step 1: Registration under FIRMS Portal of RBI as entity user and Creation of Master Data in Single Master Entity Form
Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity.
Step 2: Registration as business user on FIRMS portal.
Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity
Step 3: Reporting of Form- FC-TRS
Information and Mandatory/Optional attachments
| S.NO | DOCUMENTS AND DETAILS REQUIRED | REMARKS |
| 1. | E-mail address
| Email Address of the person authorised to filed FC-TRS |
| 2. | Phone no.
| Phone No of the person authorised to filed FC-TRS |
| 3. | IFSC Code of the Bank branch to whom the reporting would be made.
| It will be AD Category-1 Bank |
| 4. | Authority letter as an attachment for registration as business user
| We will prepare after getting signatures done and will upload. |
| 5. | Consent Letter | Consent letter for transfer/receipt of consideration duly signed by the buyer and the seller – We can prepare consent letter for both buyer and seller but for buyer we will need signature of the authorised person of foreign entity on the letterhead of foreign entity. |
| 6. | Shareholding Pattern | The shareholding pattern of the investee company (“the company, whose securities are transferring from one person to another”) before and after the acquisition of securities by a person resident outside India. – We will prepare only shareholding details of transfer are to be confirmed at company’s end. |
| 7. | Transfer Agreement/ Valuation Certificate | Certificate indicating fair value of securities from a Chartered Accountant. |
| 8 | Certificate from Company Secretary | Certificate on issue of shares by an Indian company to a Foreign Investor |
| 9. | Declaration from Buyer of Securities | Declaration from the buyer to the effect that he is eligible to acquire shares/compulsorily and mandatorily convertible preference shares/debentures under FDI policy. – We will prepare only signature will be required at company’s end. |
| 9. | Non-resident declaration: | Declaration from the non-resident transferee as per the format specified. |
| 10. | FDI Declaration | Declaration from Authorized Representative of the Indian Company. |
| 10. | Board Resolution | Board Resolution of Investee Company to approve and acknowledge the securities transfer. |
| 11. | Transfer Deed | Securities Transfer Deed in form SH 4. |
| 12. | FIRC/ Outward Remittance copy | FIRC /Outward remittance certificate and KYC to be attached at the specified attachment- FIRC/KYC received from the AD Bank of transferor/transferee. |
Note: Additional documents may be required as per the remarks given by RBI, if any.
In nutshell the process is as follows:
- Receipt of consideration from non-resident.
- Obtain FIRC (Foreign Inward Remittance certificate) and KYC (Know your customer) of person residing outside India from AD Category-I bank.
- Submitting Security transfer deed and other documents required with the company.
- Company registers the transfer.
- File FC-TRS on FIRMS RBI Portal along with the attachments. (As mentioned above)
- After submission of FC-TRS on RBI Portal, the respective authority shall examine and revert on the status of filing.
