FAQ: Mergers Acquisitions India
Answers on India market entry, FDI, GCC setup, tax, and compliance.
Cross-Border M&A Services in India for Foreign Companies
What RBI/FEMA documentation is needed for a change in foreign shareholding?
A change in an Indian company's foreign shareholding is a FEMA-reportable event — the Reserve Bank of India needs to be intimated of the change of ownership, separately from the income tax and stamp duty filings on the transaction itself. Read full answer →
How is a share transfer between an Indian and a foreign shareholder taxed?
When a non-resident buys shares from an Indian resident seller (or vice versa), the buyer generally has to withhold tax on the capital gains portion of the price before paying the seller — the exact rate depends on the shares' holding period, valuation, and any applicable tax treaty. Read full answer →
Do minority shareholders need to consent to another shareholder's exit in India?
It depends entirely on the shareholders' agreement — many include a right of first refusal, tag-along, or consent requirement that other shareholders must sign off (or waive) before a transfer can proceed, even if company law itself wouldn't otherwise require their consent. Read full answer →
What happens if withholding tax on a cross-border share sale is paid late or calculated incorrectly?
Late payment or an incorrect withholding tax calculation on a share sale can trigger interest, penalties, and disallowance risk for the buyer, and can complicate the seller's ability to claim credit for tax that should have been deducted — it's worth getting the valuation and rate right before, not after, payment. Read full answer →
How long does a cross-border share transfer take in India?
A share transfer with straightforward board/shareholder consents can close in 6-10 weeks from signed term sheet to final RBI compliance closure; transactions requiring asset valuation, multiple shareholder consents, or sector-specific approvals typically take longer. Read full answer →
Share purchase vs. asset purchase — which should a foreign buyer choose in India?
A share purchase transfers ownership of the company as-is, including its existing liabilities and history; an asset purchase lets the buyer select specific assets and leave unwanted liabilities behind, but usually involves more complex transfer mechanics (licenses, contracts, employees) and different tax treatment. Read full answer →
Can a foreign buyer acquire shares in an Indian company without setting up a new entity?
Yes — an existing foreign entity (including one already holding shares in the target, or an entirely new outside investor) can directly acquire shares in an Indian company without first incorporating a separate India entity, subject to FEMA pricing and sectoral rules. Read full answer →