Procedure - Transfer of Shares

[shifaul islam]

detailed requirement and procedures for transfer of sahres of an Indian Pvt. Ltd co. by one foriegn Shareholder to anothe foriegn shareholder. [email protected]

[Dinesh Gupta]

This issue involves various issues, whether the same is related to subject FDI, holding percentage or any other restrictive policies. As a general view, transfer of shares by one foreign shareholder to another shareholder is not restricted (except as stated herein before. Also regarding tax ability in Income Tax also may have some issues.

AI Summary

Share transfer between foreign shareholders: generally permitted subject to FDI policy, tax compliance and procedural approvals.
Transfer of shares between foreign shareholders in an Indian private limited company is generally permissible but subject to FDI policy compliance, sectoral or percentage based ownership restrictions, and applicable FEMA rules; transfers may also attract Income Tax consequences, so parties should verify approval requirements and tax obligations before completing the transaction.