23 May 2017
A & B are NRI . A & B are proposing to incorporate a company In India with the main object to buy commercial properties & to earn Rental Income in the company.
A & B would give loan from abroad to Indian company and get Interest etc. A & B will also hold 80% of equity shares.
Query
i) Whether Investment by NRI A & B in a company whose main object is to buy properties and earn Rental income is allowable in FEMA.
ii) Is it in Automatic Route or require any prior Approval from RBI.
iii) Any other applicable provision of FEMA for above transactions.
23 May 2017
Only for Construction Development: Townships, Housing, Built-up Infrastructure which include commercial properties for which 100% investment allowed under Automatic Route.
Prior permission is required in case of buying commercial property in order to earn rental income.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
24 May 2017
Thanks Alot Dear Sir For your Kind Reply
Can you give the Reference No. of Master Guide / Circular of RBI Under which such restriction are put for purchase of commercial Properties to earn Rental income.