Transfer of shared of an Indian Company from a non resident to a non resident

[Sanjeev Sharma]

Whether any permission is required from FIPB or RBI for Transfer of shares of an Indian company from a non resident to a non resident ? How the valuation and withoding tax aspect to be done ??

[Rama Krishana]

It appears that as such there is no restriction on transfer of shares from a non resident to another non resident of an India company as per FEMA regulations or FDI policy. For more details, you should refer to latest consolidated FDI policy paragraph no. 3 = https://www.taxtmi.com/circulars?id=8033

AI Summary

Non-resident share transfers: no general permission required under current FEMA/FDI rules, but valuation and withholding obligations remain. Transfer of shares between non-residents in an Indian company is not expressly restricted under FEMA or the consolidated FDI policy, so no general prior permission is ordinarily required. Parties must nonetheless comply with applicable FEMA formalities and sectoral FDI conditions, determine appropriate valuation methods for the transfer, and address any withholding tax obligations under Indian tax law or relevant tax treaties.