14 December 2008
Can an NRI be a subscriber to the Memorandum of Association (MoM) and Articles of Association (AoA) of an Indian Company? Under FERA there was a notification permitting NRIs to invest upto Rs. 10,000/- as subscriber to the MoA and AoA. However, FEMA notification 20/2000 is silent. Kindly let us know if an NRI/ foreign national/foreign company can subscribe to Memorandum and Articles of Association of an Indian Company and up to what amount?
15 December 2008
NRI can be the subscriber to the memorandum and Articles of Association and there is no limit to an amount upto which subscription can be made by NRI under FEMA Act.
CAclubindia
