forein co. setting up

This query is : Resolved

vaishali (Querist)
Follow

26 November 2009 please tel me

wat are the limits/formalities/restrictions faced by indian resident while setting up a foreign co. abroad

Sunil

Sunil (Expert)
Follow

26 November 2009 For a company (say pvt. ltd. company), partnership firm, LLP (normally professionals invest in professional firms abroad) it is permitted. Quantum will be based on your paid up share capital and your track record with bank. You can set up new company as per the conditions prevalent in the other country for minimum share capital etc. You can also buy shares in existing company (partially / wholly) but if investment is more than equiv of USD 5 Million you have to get valuation done by SEBI approved Merchant Banker specially for this purpose. Investment in Real Estate and Banking is not permitted.

Normally they permit you upto 100% of your net worth as investment in activities that are legally allowed in both the countries.If your company has several bank accounts, all your transactions for remittance should be through one bank only. You are free to designate the bank of your choice. You download form ODA from RBI and submit it to your designated AD with all the documents like board resolution and audited balance sheets etc.

If you take over existing company for less than $5million you need a CAs valuation istead of SEBI approved.

You follow the laws of the land abroad also.

vaishali

vaishali (Querist)
Follow

30 November 2009 Thanku Sir