Investment by foreign company

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Dear All,

One of my client is having wholly owned subsidiary in India and Parent Company is in UK. UK company holds 100% shares except nominee share holding by indian person. UK Company wants to pump up money into subsidiary to run and expand the business. Can any one please help me out that how to fuel money like Loan would be best or not and its implication with the procedures?

Please guide me.

Thanks in advance to expert.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 October 2016 ECB loan will the best.
See the link for more details.
https://madaan.com/foreigninvestingindia.html

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2016 Dear Sir,

Many thanks for your reply.

In this article, ECB is not explained. Can you please guide further? UK Company wants to infuse the money for short term purpose and Loan is prohibited like short term loan or long term loan from Parent company??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 October 2016 ECB loan can be obtained from parent company at LIBOR rates. Search google RBI terms for ECB loans. I am not able to paste the link.

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