🌐 FCTRS (Foreign Currency Transfer of Shares)

Reporting Transfer of Shares Between Resident and Non-Resident under FEMA

The Form FC-TRS is an essential compliance requirement under the Foreign Exchange Management Act (FEMA), 1999, governed by the Reserve Bank of India (RBI).
It is used to report the transfer of shares or convertible securities between a resident and a non-resident entity or vice versa.

At KLS Advisors, we provide end-to-end assistance for FC-TRS filing, ensuring complete compliance with FEMA and RBI guidelines through the FIRMS (SMF) portal — helping businesses stay legally compliant and audit-ready.

📘 What is FC-TRS?

Form FC-TRS (Foreign Currency – Transfer of Shares) is required when there is a transfer of shares or securities between:

• A resident and a non-resident

• A non-resident and a resident

This includes both sale and purchase transactions. The filing ensures that the transfer complies with pricing guidelines, sectoral caps, and FDI policy under FEMA.

It must be filed within 60 days from the date of transfer of shares.

⚙️ When is FC-TRS Filing Required?

You need to file Form FC-TRS in the following cases:

• 💸 Sale of shares by a non-resident to a resident (or vice versa).

• 🔄 Transfer of shares by a foreign investor to another foreign investor (in some cases).

• 🏢 Buyback or transfer of shares involving foreign shareholders.

• 💰 Conversion of shares between foreign and Indian entities as part of M&A transactions.

• 📊 Gift or transfer of shares without monetary consideration (requires RBI approval).

🗂️ Documents Required for FC-TRS Filing

To file Form FC-TRS correctly, you need the following documents:

• 🧾 Copy of Share Purchase Agreement (SPA) or Transfer Deed

• 💰 Valuation Certificate by a Chartered Accountant or Merchant Banker

• 📄 KYC report of the non-resident investor from the remitting bank

• 🏦 FIRC (Foreign Inward Remittance Certificate), if applicable

• 📜 Declaration by transferor and transferee

• 🏢 Board Resolution approving the transfer

• 🪪 PAN and CIN of the Indian Company

• 📑 Shareholding pattern before and after transfer

• 📥 Any RBI or Government approval (if required by the sector)

🔄 Step-by-Step Process of FC-TRS Filing

1. 💼 Execution of Share Transfer
   The buyer and seller execute a Share Purchase Agreement (SPA) or Transfer Deed.

2. 📊 Valuation of Shares
   The fair value of shares is determined as per FEMA pricing guidelines.

3. 📤 Submission on FIRMS Portal
   The authorized entity logs in to the FIRMS (SMF) portal and fills in the FC-TRS form.

4. 📎 Upload of Supporting Documents
   All necessary documents are uploaded along with declarations and approvals.

5. ✅ Approval by AD Bank
   The Authorized Dealer Bank reviews and approves the submission after verification.

🕒 Timeline for FC-TRS Filing

• Must be filed within 60 days from the date of transfer of shares.

• Delay may result in penalties or late submission fees (LSF) under FEMA regulations.

⚠️ Penalties for Non-Compliance

Failure to file FC-TRS on time can lead to:

• 💸 Late submission fees (LSF) imposed by RBI

• ⚖️ FEMA contravention proceedings

• 🚫 Future FDI restrictions or scrutiny during audits

• 🕵️ Ineligibility for repatriation of funds until compliance is complete

🌟 Why Choose KLS Advisors

✅ FEMA & FDI Compliance Specialists — Expert handling of RBI and FEMA filings.
✅ End-to-End Assistance — From document collection to FIRMS portal submission.
✅ Quick Turnaround — On-time filing and approval tracking.
✅ Seamless Coordination — With Authorized Dealer Banks and RBI.
✅ Transparent Pricing — No hidden charges, complete compliance clarity.

💡 Benefits of Timely FC-TRS Filing

• 📘 Ensures legally valid share transfers under FEMA

• 🏦 Maintains RBI & Bank compliance records

• ⚙️ Facilitates future FDI and funding rounds

• 🔒 Prevents legal and regulatory penalties

• 💼 Enhances corporate credibility with investors

🚀 Get Your FC-TRS Filing Done with KLS Advisors

Stay compliant and avoid penalties with professional assistance from KLS Advisors.
We handle your FC-TRS filings, documentation, and RBI coordination efficiently — ensuring your cross-border transactions remain smooth and compliant.

📞 Contact Us: +91-9717720616
📧 Email: info@klsadvisors.in
🌐 Website: www.klsadvisors.in