Business set up

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 My brother in law is a resident of India under FEMA and under Income tax Act. He wants to start business in UAE by forming a proprietary company in UAE. After forming it will be run and managed by an employee of UAE. After formation he will return to India. Every month he will visit UAE for 3-4 days to see the performance and profitability of the business.

Q.1 Being a Resident Indian, Can he form a proprietary company out of India without prior permission from RBI?

Q.2 Necessary formation cost of the Concern will be remitted from India? Can he do this ?

Q.3 further working capital for business will be availed from the banks in UAE?Can he do this ?

Q.4 Can he run the the business with more time staying in India - under FEMA

Q.5 Whether he will be liable to pay tax in India on the profits of the UAE company- and if yes will he get the advantage of DTAA

Please give answers with relevant provisions of both the Acts.

Regards,

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Urgent