Fema queey:

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2017 A & B are NRI . A & B are proposing to incorporate a company In India with the main object to buy commercial properties & to earn Rental Income in the company.

A & B would give loan from abroad to Indian company and get Interest etc. A & B will also hold 80% of equity shares.

Query

i) Whether Investment by NRI A & B in a company whose main object is to buy properties and earn Rental income is allowable in FEMA.

ii) Is it in Automatic Route or require any prior Approval from RBI.

iii) Any other applicable provision of FEMA for above transactions.

Please reply.
Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 May 2017 Only for Construction Development: Townships, Housing, Built-up Infrastructure which include commercial properties for which 100% investment allowed under Automatic Route.

Prior permission is required in case of buying commercial property in order to earn rental income.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2017 Thanks Alot Dear Sir For your Kind Reply

Can you give the Reference No. of Master Guide / Circular of RBI
Under which such restriction are put for purchase of commercial
Properties to earn Rental income.

This would be of great help to us.

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