Funds from abroad as share capital and loan in a Pvt. Co.

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sushil mangla (Querist)

19 February 2008 Dear Professional friend

Please guide me as to case where Funds are to be received from abroad as share capital and loan.

(1).What formalities are there that we have to take care of for receiving such funds in a Pvt. Co as under:-

-FDI (FEMA)
-RBI
-COMPANIES ACT
-Any Other Act

(2).Do it involves any intimation to RBI prior to or after receipt of such funds.

(3).Do such an amt either share capital or shareholder's loan need be paid back or not.

(4). Is there any specfic private cos anly for which such a receipt can be there

Please note that the works of this pvt co are of a trading nature.

shilpa

shilpa (Expert)

15 March 2008 pls specify the nature of trading.I mean specify which type of trading,wholesale or retail amd in which area?

The FDI for ratail trading is prohibited under FEMA.

But for some activities it is allowed through FIPB approval or FDI is also allowed.

The Indian company has to intimate RBI withing 30 days of receipt of such funds in form FCGPR.

The FDI should be in the shares if the indian company is receiving funds.

sushil mangla

sushil mangla (Querist)

23 March 2008 Dear Shilpa Ji

Thanks for guiding me, please note that this co is in retale of music cassettes/ cds etc, basically its a music co.

If it invite fdi in shares can later it invite loan from shareholders

Thanks for your consideration

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