CS Labdhi Shah (Practising Company Secretary) (103 Points)
18 January 2012I have client who is a director of a private company. Now the Director wants his son to invest in the company by way of shares or by giving loan to the company. The company is engaged in manufacturing of inorganic chrome pigments. Can anybody please guide me as to how NRI son can invest in company and what is the ceiling for investing in the shares or giving loan to the company. Since this is term as FDI, let me know the maximum percentage of shares a Director's NRI son can invest.
GURMUKH
(CS)
(81 Points)
Replied 05 February 2012
He can invest money as Share application. The Valuation of Shares shall be done as prescribed by RBI. CA certifcate to that effect shall be attached when allotment of Shares is made. When Remittance if recieved a KYC Form along with Report shall be filed by Company with RBI through AD within 30 days of receipt of money. RBI will allot UIN to the application. Allotment of Shares has to be made within 180 days of receipt of remittance in India. Hope this solves your query.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
