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INVESTMENT IN FOREIGN COs

This query is : Resolved 

22 February 2010 DEAR FRIENDS
CAN YOU TELL ME

1. WHAT ARE THE GUIDELINE REGARDING FORMING A FOREIGN COMPANY BY SENDING REMITTANCE FROM AN INDIAN COMPANY FOR MEETING PRELIMINARY EXPENSES ?

2. WHAT SHOULD BE THE MOST APPROPRIATE FORM FOR THE REMITTANCE - SHARE CAPITAL OR LOAN & ADVANCES.

3. IS THERE ANY RESTRICTION REGARDING ADVANCING LOAN TO A FOREIGN COMPANY.
THANKS AND REGARDS

23 February 2010 The procedure for forming a foreign company would depend onthe law applicable in that particular country.

As regards remittance of money, there is no restriction in making remittance to a wholly owned subsidiary and the same can be in the form of capital or loans and advances. Loans and advances would be preferred.

There are no restrictions provided it is under the investments limit of the company and routed through proper banking channels.



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