Hi,
I have a client who wants to start a business in Honkong, for which he requires to remit some money to Honkong for investing in a partnership. I want to know upto what limit the remitances are allowed under the FEMA act, under the automatic route for Business Purposes
This is really a grey area as under the Liberalised Remittance Scheme the funds upto USD 2,00,000/- are allowed to be remmitted freely but as per FEMA Act only companies and registered partnerships are recognized as Indian party to be eligible for outbound strategic investments by way of JV/WOS. As per this view, an individual would require prior RBI approval of RBI.
Abic and Mani Chartered Accountants
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