13 May 2013
Dear Sir, our Company is planning to float a subsidiary in Dubai and Honkong. Kindly guide me with the necessary approvals of RBI and Compliances of Companies Act 1956, if any
13 May 2013
The criteria for direct investment under the Automatic Route are as under:
The Indian Party can invest up to 400% of its net worth (as per the last audited Balance Sheet) in WOS for any bonafide activity permitted as per the law of the host country. The ceiling of 400% of net worth will not be applicable where the investment is made out of balances held in the EEFC account of the Indian party or out of funds raised through ADRs/GDRs;
further the Indian Party should not be on the Reserve Bank’s exporters' caution list / list of defaulters to the banking system published/ circulated by the Credit Information Bureau of India Ltd. (CIBIL) /RBI or any other credit information company as approved by the Reserve Bank or under investigation by the Directorate of Enforcement or any investigative agency or regulatory authority; and
The Indian Party routes all the transactions relating to the investment in a JV/WOS through only one branch of an authorised dealer to be designated by the Indian Party.
CAclubindia
