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Hong Kong to India · Exit

Exit and restructuring for a Hong Kong parent

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A Hong Kong 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%. Hong Kong generally does not tax the gain, so Indian tax is the main cost.

What is specific to Hong Kong companies

A buyer from a land-border country also needs approval, and the exit must respect the original approval's conditions.

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
Send a queryFEMA and RBI reporting

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

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