Fema overseas investment
This query is : Resolved
10 February 2012
Hi,
I have a query regarding FEMA overseas investment. My Company a private Limited concern in India wants to set up a subsidiary in USA with 95% shareholding of the indian company and 5% shareholding of the indian company's other WOS foreign subsidiary in hongkong. The professional fees charged by the lawyers of USA for company formation is in US dollars which the Indian Company wants to remit.
My query is whether the remittance to USA will require approval of RBI. Do we have to file Form ODI for paying professional fees to lawyers? Further how will this transaction be treated in books of Indian Company and in the newly formed USA subsidiary?
Require help in this regard.
Warm Regards,
Sweta Todi
M.Com, A.C.S
I have a query regarding FEMA overseas investment. My Company a private Limited concern in India wants to set up a subsidiary in USA with 95% shareholding of the indian company and 5% shareholding of the indian company's other WOS foreign subsidiary in hongkong. The professional fees charged by the lawyers of USA for company formation is in US dollars which the Indian Company wants to remit.
My query is whether the remittance to USA will require approval of RBI. Do we have to file Form ODI for paying professional fees to lawyers? Further how will this transaction be treated in books of Indian Company and in the newly formed USA subsidiary?
Require help in this regard.
Warm Regards,
Sweta Todi
M.Com, A.C.S
11 February 2012
Form odi is not to be filed for payment of professional fees to lawyers abroad. It is for set up of overseas subsidiary.
These would be pre incorporation expenses. May be debited to us co once incorporated.
Cavishalshah@gmail.com
These would be pre incorporation expenses. May be debited to us co once incorporated.
Cavishalshah@gmail.com
11 February 2012
Form a2, 15ca,15cb, letter, annex a. Needs to be filed for fees.
13 February 2012
Can you please let me know these forms are governed under which FEMA provisions??
Warm Regards,
Sweta Todi
M.com, A.C.S
Warm Regards,
Sweta Todi
M.com, A.C.S
13 February 2012
Current Account regulations 2000
17 February 2012
In form A2 I have not come across option relating to pre - incorporation expenses. There is an option for legal fees. Can we remit money showing for legal fees paid and then include in balance sheet of foreign incorporated as pre incorporation expense incurred.
Warm Regards,
Sweta Todi
M.Com, A.C.S
Warm Regards,
Sweta Todi
M.Com, A.C.S
17 February 2012
yes, thats not a problem. infact we are paying legal fees only. pre-incorporation is accounting done for it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
