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.