Chartered Accountants Est. 2019

China to India · Exit

Exit and restructuring for a Chinese parent

, FCA, ICAI M. No. 542375 · Updated

In brief

A Chinese parent can exit by sale, buyback, voluntary liquidation or merger. Gains on Indian shares: India can tax under its domestic law. Where India taxes, long-term gains on unlisted shares are taxed at 12.5%. Exits involving Chinese owners may also need Government approval for the incoming buyer.

What is specific to Chinese companies

A land-border buyer also needs approval, and the Chinese parent updates its outbound filings on disposal.

Our services

How S U & CO. helps

We plan and carry out exits and reorganisations on the Indian side.

  • Valuation and FEMA pricing
  • Tax computation on gains
  • FC-TRS and closure filings
  • Liquidation, merger and strike-off steps

Questions

How long does a voluntary liquidation take?

Usually many months, depending on tax and regulatory clearances.

General information as at 5 November 2026, not advice for a particular case. Indian and Chinese rules change often; confirm the current position before acting. Chinese law points should be confirmed with a Chinese adviser.

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