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Non resident under FEMA

Others 854 views 1 replies

CA. Rashi Goyal

Chartered Accountant

512 Points Joined December 2008

An Indian person holding 90% (approx) equity shares in private limited company, after completing his studies had taken employment in US w.e.f 01.06.11.

Now as per FEMA he becane an NRI w.e.f 01.06.11. Do Indian companies in which he holds share are required to intmate the RBI that thier shares are held by an NRI.

Secondly can he operate his Indian bank account through net banking or physically signing the cheques out of his bank account which are in India.

Please advice.

Regards,

Rashi Goyal

Replies (1)

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

1. No intimation to RBI is required as no Foreign funds have entered India and the shares wrere acquired by Indian person when he was resident as per FEMA.

2.The Indian accounts should be converted to NRO accounts and then net banking (if allowed by bank) is also permitted.

Anuj

+91-9810106211

femaquery @ gmail.com