Fema compliances for fdi in firm

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Hi,

Is there any FEMA compliances required for investment done by an individual in partnership firm in India?

Second question is what if the partnership firm having FDI is converted into the company what are the compliances requirement?

Ajay Mishra

Ajay Mishra (Expert)
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18 June 2013 Hi

Go to the following link, it may help you:

https://www.caclubindia.com/articles/note-on-foreign-direct-investment-in-india-13412.asp

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 it does not mention about compliances required by partnership firm.......

The query is specific for FDI in partnership firm.

Please help thanks.

Ajay Mishra

Ajay Mishra (Expert)
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18 June 2013
FDI IN PARTNERSHIP FIRM / PROPRIETARY CONCERN:

(i) A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) resident outside India can invest in the capital of a firm or a proprietary concern in India on non-repatriation basis provided;
(a) Amount is invested by inward remittance or out of NRE/FCNR(B)/NRO account maintained with Authorized Dealers / Authorized banks.
(b) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business or print media sector.
(c) Amount invested shall not be eligible for repatriation outside India. 15

(ii) Investments with repatriation option: NRIs/PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns/partnership firms with repatriation option. The application will be decided in consultation with the Government of India.
(iii)Investment by non-residents other than NRIs/PIO: A person resident outside India other than NRIs/PIO may make an application and seek prior approval of Reserve Bank for making investment in the capital of a firm or a proprietorship concern or any association of persons in India. The application will be decided in consultation with the Government of India.
(iv)Restrictions: An NRI or PIO is not allowed to invest in a firm or proprietorship concern engaged in any agricultural/plantation activity or real estate business or print media.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 I know all this provisions but my question is very specific whether there is any requirement for reporting to RBI or AD bank like FDI in companies?

Second questions is what about the implications in case the firm is converted into partnership firm?