CS MOHIT SALUJA
Quick Summary
For a country where capital is not readily available, Foreign Direct Investment (FDI) has been an important source of funds for companies. Under FDI, overseas money, either by an individual or entity, is invested in an Indian company. Moreover, FDI in India is now a boom since the Government of I
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FAQ :
Generally, only Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs) resident outside India can invest in the capital of a firm or proprietary concern in India on a non-repatriation basis, subject to certain conditions.
The investment must be made via inward remittance or from NRE/FCNR(B)/NRO accounts. The firm cannot be engaged in agricultural, plantation, real estate, or print media sectors, and the invested amount is not eligible for repatriation outside India.
Yes, NRIs/PIOs may seek prior permission from the Reserve Bank of India for investment in sole proprietorship or partnership firms with a repatriation option. The decision is made in consultation with the Government of India.
Yes, persons resident outside India who are not NRIs or PIOs can apply to the Reserve Bank of India for prior approval to invest in the capital of a firm or proprietorship concern. This decision is also made in consultation with the Government of India.
Yes, NRIs or PIOs are not allowed to invest in a firm or proprietorship concern engaged in any agricultural/plantation activity, real estate business, or the print media sector.
For investments made on a non-repatriation basis, the invested amount is not eligible for repatriation outside India. Repatriation is only possible if prior permission is obtained from the Reserve Bank of India.
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