I have following queries regarding foreign remittances, kindly help me :
1. Can a Foreign National of Indian Origin intending to incorporate a Private Limited company in India can remit the amount to the India for this purpose.
2. What will be the mode of such remittance.
3. Can it be given as a loan to the individual handling the issue in India.
4. How this loan can be repaid to the foreign national after the incorporation of the company.
5. Can this loan be converted into Equity, or the fresh cash has to be brought in as equity capital.
6. How profits from this company can be repatriated.
7. What are the guidelines / procedures under FEMA and requirements of RBI approvals etc.
1. Can a Foreign National of Indian Origin intending to incorporate a Private Limited company in India can remit the amount to the India for this purpose.
Ans. Yes, under FDI automatic route
2. What will be the mode of such remittance.
Ans. Mode: Foreign Inward Remittance or NRE A/c.
3. Can it be given as a loan to the individual handling the issue in India.
Ans. It may be possible subject to certain many conditions.
4. How this loan can be repaid to the foreign national after the incorporation of the company.
Ans. It depends on under which regulation PIO have lent the money.
5. Can this loan be converted into Equity, or the fresh cash has to be brought in as equity capital.
Ans. Investment for Shares need to be funded out of NRE A/c. or Foreign Inward remittance.
6. How profits from this company can be repatriated.
Ans. Profits/Dividend (after DDT) shall be freely repairable with simple procedure.
7. What are the guidelines / procedures under FEMA and requirements of RBI approvals etc.
Ans. refer FEM (TIS) Regulation 2000
for any clarification uou may send me email to juzer.sadikot@gmail.com
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