FDI Services

Looking to sell FDI Shares ?

What Is a Foreign Direct Investment (FDI)?

Foreign direct investment (FDI) is investing in a foreign company or a project by a company or government from another country. This is in the form of an ownership stake in the investee company. Generally, this route is used to buy a substantial stake in a foreign business or to buy the business outright to expand the operations in the new region. These investments are more of strategic in nature, substantial in amounts and longer term in duration.

Types of Foreign Direct Investment

FDIs are commonly categorized as:

1. Horizontal FDI: under this FDI, the company invests in the same type of business operation in a foreign country as it operates in its home country.
2. Vertical FDI: in this case, the company acquires a business which is complementary to its business in the home country. The company undertakes different business activities overseas but these activities are related to the main business.
3. Conglomerate FDI: under this type of FDI, a business undertakes unrelated business activities in a foreign country.
4. Platform FDI: here, a business expands into another country but the output from the business is then exported to a third country.

What do we do ?

In case you have invested in any company through FDI route (Foreign Direct Investments), we provide services to sell these shares on the stock exchange and remit the proceeds to your overseas bank account. 

Pre-requisites to sell FDI Shares:

1. The shares should be in dematerialised form and held with a custodian in India. In case you have not done so, we help you choose the custodian and dematerialise the shares.
2. A brokerage account is to be opened to sell the shares on the stock exchange in India. This will be opened with us. The document requirement would be:
   a. Account opening form duly signed
   b. Board Resolution in case of a body corporate & Authority Letter in case of an LLP.
3. Upon sale of shares, the proceeds will be remitted to your overseas bank account. To process the remittance, we would need a Tax Certificate and a copy of FC-GPR / FC-TRS filing with the Reserve Bank of India.
4. The Tax Certificate is provided by Chartered Accountant in India. It shows the Indian Capital Gains tax liability on sale of shares. We arrange this tax certificate on your behalf from our empanelled Chartered Accountants.
5. You should also have a copy of FC-GPR filed with Reserve Bank of India. FC-GPR is a document filed by Investee company when it issues shares to overseas shareholder. A copy can be obtained from the Secretarial Division of the Investee Company.
6. However, in case you have acquired the shares from an existing investor then you should obtain a copy of FC-TRS. This document is filed by Investee company with Reserve Bank of India when you acquire shares from existing investor. A copy of FC-TRS can be obtained from the Secretarial Division of the Investee Company.

At present, we serve customers in:
Cayman Islands
Singapore
United Arab Emirates
United States of America

For more details, write to us at premiaservices@samarthcapital.in