Chartered Accountants Est. 2019

S U & CO.Chartered Accountants

USA to India · Exit

Exit and restructuring for a US parent

, FCA, ICAI M. No. 542375 · Updated

In brief

A US parent can exit by sale, buyback, voluntary liquidation or merger. Gains on Indian shares: Left to domestic law, so India can tax the gain. Where India taxes, long-term gains on unlisted shares are taxed at 12.5%. US-side elections, such as Section 338(g), should be coordinated with the Indian steps before signing.

What is specific to US companies

Because the treaty leaves gains to domestic law, a sale of the Indian shares by the US parent is taxable in India. US elections such as Section 338(g) and check-the-box changes should be agreed before signing so the Indian and US steps line up.

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
Send a queryFEMA and RBI reporting (FC-GPR, FLA)Company secretarial and ROC compliance

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 US rules change often; confirm the current position before acting. US law points should be confirmed with a US adviser.

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