Fema
Dhruv
(Querist) 06 February 2012
This query is : Resolved
Dear Sir / Madam,
What are the restrictions regarding an NRI opening a pvt ltd company in India?
An NRI has opened a pvt ltd co., with an Indian resident, the share of NRI being 99%?
What are the additional compliances need to be followed regarding an NRI being a majority shareholder and a director in an Indian company by the company or the NRI?
And suppose if NRI intends to sell his shares to an Indian resident, then what are the compliances need to be followed?
A V Vishal
(Expert) 06 February 2012
There are number of compliances which can only be advised upon going through the facts of your case, further, since there are numerous compliances it is better to seek services of a local professionally qualified person.
CS Deepak Pratap Singh
(Expert) 07 February 2012
Dear Friend,
according to provisions of FEMA a NRI/OCB can invest in India through automatic as well as approval route. They can invest in all types of persons as defined in Income Tax Act, 1961. They can invest in newly incorporated private limited company upto 100% following norms of FEMA.
M V Gupta
(Expert) 12 February 2012
NRI is an Indian citizen for all purposes. There are no restrictions on his right to invest in any venture in India. But if the investments are made out of income arising to him in India he cannot repatriate the income outside the country. if however the money invested is remitted from abroad, the income can be repatriated whenever he wants. For this purpose he will have to produce a certificate from his Auditor.
R.V.Seckar
(Expert) 07 April 2012
Hello,
There is no restriction for incorporating a pvt ltd by a NRI in India. Even NRI can invest in real estate activities subject to certain conditions and stipulations under FEMA.
For more details ,you may visit the following blog:
www.rvseckarfema.blogspot.com
http://rvseckarfema.blogspot.in/2011/03/foreign-company-can-invest-in.html
Regards
R V Seckar
