The FC-TRS Filing
Form FC-TRS is the prescribed form for reporting the transfer of shares between a resident and a non-resident. In a cross-border scheme, the transfer of the Indian company’s shares to the foreign transferee, or the issue of the foreign transferee’s shares to the Indian transferor’s shareholders, may trigger the FC-TRS filing. The filing must be made within sixty days of the transfer or the remittance, whichever is earlier.
The FC-GPR Filing
Where the scheme involves the issue of shares by an Indian company to a non-resident, the issue must be reported in Form FC-GPR within thirty days of the allotment. The FC-GPR requires the valuation report, the board resolution, and the KYC documentation of the non-resident investor.
The FLA Return
The foreign liabilities and assets return is an annual filing that every Indian company with foreign investment must file by 15 July. The scheme may change the company’s foreign investment position, and the FLA return should reflect the post-scheme position.
The Sequencing
The FEMA reporting should be sequenced with the NCLT process: the NCLT order, the allotment, the FC-GPR or FC-TRS filing, and the FLA return. A delay in the FEMA filing can attract a late filing fee and, in serious cases, a penalty under FEMA.
Call to Action: For FC-TRS/FC-GPR filing, FEMA reporting sequencing, or cross-border scheme compliance, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.