Chartered Accountants◆Practising since 2016

China to India · Exit

Exit and restructuring for a Chinese parent

CA Utsav Dogra, Chartered Accountant, 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 SU and Company 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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