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FEMA and RBI|Glossary entry|2 min read

FC-TRS

Foreign Currency Transfer of Shares/Form FC-TRS

RBI filing reporting transfer of shares between an Indian resident and a person resident outside India.

Filing window

60 days of receipt or remittance of consideration

Regulator

Reserve Bank of India (RBI)

Regulator

Reserve Bank of India (RBI)

Deadline

Within 60 days of receipt or remittance of consideration

Penalty

FEMA compounding fees under Section 13: base fee plus 0...

Legal basis

Foreign Exchange Management Act, 1999

§ 01
Definition

What is FC-TRS?

RBI filing reporting transfer of shares between an Indian resident and a person resident outside India.

Applies to
  • +Indian companies with foreign shareholders
  • +Wholly Owned Subsidiaries of foreign parents
  • +Foreign-owned GCCs operating in India
§ 02
Citation

Statutory basis

Foreign Exchange Management Act, 1999

Section 6 read with FEMA (NDI) Rules, 2019

Rule reference

Rule 4 of FEMA Non-Debt Instruments Rules, 2019

Enforced by

Reserve Bank of India (RBI), through FIRMS portal

Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.

§ 03
Why it matters

The stake

60 days of receipt or remittance of consideration

Filing window for FC-TRS. Skipping or mishandling this compliance carries direct financial and operational consequences.

Why FC-TRS matters for your GCC

FC-TRS is a cross-border RBI requirement for foreign-owned Indian entities and GCCs. Missing the within 60 days of receipt or remittance of consideration obligation triggers fema compounding fees under section 13: base fee plus 0, and downstream filings or transactions may be blocked until rectification. Most foreign parents discover FC-TRS issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.

§ 04
Pitfalls

The 4 ways FC-TRS goes wrong

Real scenarios from real GCC compliance audits. Each one preventable.

01

Trap 01

Treating FC-TRS as something the AD bank handles when the Indian company is the legal filer

02

Trap 02

Missing the filing window due to internal delays between finance, banking, and legal teams

03

Trap 03

Submitting with incorrect supporting documents such as FIRC, KYC, or board resolutions

04

Trap 04

Discovering the contravention only when attempting a downstream RBI transaction

§ 05
IRPR Network handles this

Done for you

FEMA and RBI Compliance

IRPR Network handles FC-TRS as part of our FEMA and RBI Compliance service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.

Our workflow

  1. 01Identify the trigger event in your GCC operations
  2. 02Prepare and validate the FC-TRS filing or compliance step
  3. 03Submit to the regulator and obtain acknowledgement
  4. 04Track in your compliance calendar for ongoing or recurring obligations
§ 07
Questions

Asked about FC-TRS

5 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.

Need help with FC-TRS?

IRPR Network manages FC-TRS as part of FEMA and RBI Compliance, with a zero-penalty guarantee.

Explore the service
Q01

What is FC-TRS and who does it apply to?

+

RBI filing reporting transfer of shares between an Indian resident and a person resident outside India. For foreign-owned GCCs, FC-TRS applies to indian companies with foreign shareholders. IRPR Network handles FC-TRS as part of our FEMA and RBI Compliance service.

Q02

When is FC-TRS due?

+

FC-TRS is due within 60 days of receipt or remittance of consideration. Late filing triggers fema compounding fees under section 13: base fee plus 0.

Q03

What law governs FC-TRS?

+

FC-TRS is governed by Foreign Exchange Management Act, 1999, specifically Section 6 read with FEMA (NDI) Rules, 2019, read with Rule 4 of FEMA Non-Debt Instruments Rules, 2019. The compliance is enforced by Reserve Bank of India (RBI), through FIRMS portal.

Q04

What is the penalty for non-compliance with FC-TRS?

+

Non-compliance attracts: FEMA compounding fees under Section 13: base fee plus 0.075 percent per month escalation. Late filing blocks downstream FEMA transactions until rectified. IRPR Network's compliance retainer is designed to prevent these exposures through proactive filing, citation tracking, and a defined compliance calendar.

Q05

Who handles FC-TRS for foreign-owned GCCs in India?

+

IRPR Network handles FC-TRS end-to-end as part of our FEMA and RBI Compliance service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.

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Handle FC-TRS the right way, the first time.

Book a 30-minute consultation. We will map your FC-TRS obligations alongside every other India compliance for your GCC, on one calendar, one retainer.

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