Comapanies Act

Save Share

This query is : Resolved

Senthil (Querist)
Follow

04 March 2011 A foreign company which plans to start its operation in India has transferred an amount(with prior approval and filing of necessary forms) as advance share capital to his Indian counterpart.

What would be the consequences if the money is not utiliized within the mandatory period of 180 days? Should the money be returned back and any forms to be filed for this.

Kindly elaborate.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

04 March 2011 As per FEMA Notification no. FEMA 170/2007-RB dated November 13, 2007, Company receiving FDI in India should allot equity shares or refund the money within 6 (Six) months from the date of receipt of investment from outside India.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now