FC-TRS Cover Letter (Transfer between Resident and Non-Resident)
Prepare the cover letter for reporting a transfer of shares of an Indian company between a resident and a non-resident in Form FC-TRS.
What it is
A transfer of equity instruments of an Indian company between a person resident in India and a person resident outside India, by sale, is reported in Form FC-TRS under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. The form is filed on the RBI FIRMS portal by the resident party and processed by the authorised dealer bank. The cover letter summarises the parties, direction of transfer, shares, price and the pricing method.
When it is used
- A foreign investor buys shares from an Indian shareholder.
- A non-resident sells shares to a resident.
- Exit of a foreign investor from an unlisted company.
What the template covers
- Company name and CIN
- Direction of transfer
- Transferor and transferee names and addresses
- Number of shares and price per share
- Date of transfer and pricing method
- AD bank and authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date
Indian Company
Indian Company Name; CIN
Transfer
Direction of Transfer; Transferor Name; Transferor Address; Transferee Name; Transferee Address
Shares
Number of Shares Transferred; Price per Share (₹); Date of Transfer; Valuation / Pricing Method
AD Bank
Authorised Dealer Bank
Authentication
Authorised Signatory; Designation
Stamp duty, registration and filing
FC-TRS is filed within 60 days of the transfer of shares or receipt or remittance of funds, whichever is earlier. Pricing guidelines apply: a transfer from resident to non-resident cannot be below fair value, and from non-resident to resident cannot be above fair value. The company registers the transfer only after the form is acknowledged. Late reporting attracts late submission fees. Check the rules on rbi.org.in.
Generate the FC-TRS Cover Letter (Transfer of Shares — Resident & Non-Resident)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the MCA e-form filing)? Contact SKAG and Associates
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Frequently asked questions
Who files Form FC-TRS?
The resident transferor or transferee, as the case may be.
What is the time limit for filing FC-TRS?
Within 60 days of transfer or receipt or remittance of funds, whichever is earlier.
Does stamp duty apply to the transfer?
Yes. Stamp duty on transfer of shares applies as for any transfer.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.