<\/span><\/h2>\n\n\n\n1. Can an NRI buy shares in an Indian private limited company?<\/strong>
Yes. An NRI can buy equity shares of an existing Indian private limited company on a repatriation or non-repatriation basis. Repatriable purchases follow FDI sector caps, entry routes and pricing rules under FEMA, and require reporting. Always verify the company\u2019s sector and shareholding limits before paying.<\/p>\n\n\n\n2. What is Form FC-TRS?<\/strong>
Form FC-TRS reports transfers of equity instruments between a resident and a non-resident. It is filed on the RBI\u2019s FIRMS portal through an authorised dealer bank, with the valuation certificate, KYC and transfer documents. It confirms the transaction complied with FEMA pricing and payment rules.<\/p>\n\n\n\n3. What is the deadline for FC-TRS filing?<\/strong>
FC-TRS must be filed within 60 days from the earlier of two dates: receipt of the consideration or transfer of the shares. Late filing attracts a late submission fee and may require regularisation under FEMA, so schedule it as a closing task.<\/p>\n\n\n\n4. What is the pricing rule when an NRI buys shares from a resident?<\/strong>
The price must not be lower than fair value, determined by an internationally accepted valuation methodology and certified by a Chartered Accountant, SEBI-registered merchant banker or cost accountant. Paying less than fair value breaches FEMA and may create tax consequences for the buyer.<\/p>\n\n\n\n5. Can an NRI repatriate sale proceeds from private company shares?<\/strong>
Proceeds are repatriable when the shares were bought on a repatriation basis, with FEMA-compliant payment and filings, after paying applicable taxes. Shares bought on a non-repatriation basis are credited to an NRO account and remittance is limited to annual thresholds.<\/p>\n","protected":false},"excerpt":{"rendered":"When an NRI wants to buy shares in an Indian private limited company, the deal looks simple: agree a price, transfer the money, sign the transfer form. In practice, the transaction is governed by the Foreign Exchange Management Act, 1999 (FEMA), the Companies Act, 2013 and the Income-tax Act, 1961 together. A missed pricing check […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[812],"tags":[4787,4786,4782,4784,4783,4312,4792,4785,4791,4781,3295,4594,4788,4789,4790,4793],"class_list":["post-9759","post","type-post","status-publish","format-standard","hentry","category-blog","tag-buy-shares-from-resident-indian","tag-fair-value-pricing-fema","tag-fc-trs-filing-process-2026","tag-fc-trs-form","tag-fema-share-transfer-rules","tag-firms-portal-rbi","tag-foreign-investment-in-private-limited-company","tag-ndi-rules-2019","tag-non-repatriation-basis-nri","tag-nri-buy-shares-in-indian-private-limited-company","tag-nri-investment-in-india","tag-nri-share-transfer-india","tag-nro-nre-account-investment","tag-repatriation-basis-investment","tag-sh-4-share-transfer","tag-share-purchase-agreement-india"],"_links":{"self":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/comments?post=9759"}],"version-history":[{"count":1,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9759\/revisions"}],"predecessor-version":[{"id":9761,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9759\/revisions\/9761"}],"wp:attachment":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/media?parent=9759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/categories?post=9759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/tags?post=9759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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