Im NRI living in london and want to invest in indian plc company... In india his business is running from past 10 yrs and is registered PLC. What are the options available for me.. .as I need to repatriate my capital I read that NRI cannot repatriate money back
Firstly, it is important to understand the nature of business of the Indian company and whether foreign direct investment (FDI) is allowed in that business or not. In most of the cases, it is allowed.
Although I am not FEMA expert to comment on repatriation of money but I am pretty sure you can repatriate the money after paying due taxes.
Let some FEMA expert here back my position.
Hi
For investment purpose, please let us know the nature of business of PLC. Although in most of the bsinesses there are no restrictions, the FDI in few sectors is prohibited.
Also, how will you transfer the amounts for investment? For NRO account, there is a capping of $ 1 million.
Although we may guide you on this, but for best course of action, you should contact a FEMA expert for these issues.
thanks for responding.. Im not able to have proper discussion in this format of q&a and ending up paying for every question.. it doesnt make sense Anyway to answer abhishek.. -- the business is in engineering services , projects to ONGC. -- I have done lot of reading on the NRE investing over last few days and my question should have been more detailed to get proper answer and value for money paid ---- the project is with ongc to do some engineering services and I want to do partnership with indian firm instead of providing loan. I will be partner only on this project, by the indian company. The company is doing many other projects at same time. Whats the best way to structure this deal without creating new company /spv. -- the capital is used to buy equipment from europe and so I dont need to route the initial investment money to india. The project is in india. I need to confirm and do the partnership with the firm in a way not getting involved with FEMA. --- the project is for 1 yr and after that i would need to repatriate the funds back to Uk.
You may become a partner in an Indian partnership firm and contribute towards the capital. But, under the automatic route, it is on a non-repatriation basis.
For investments on repatriation basis, you will need prior RBI approvals.
Sorry for the inconvenience. You would be expecting better answers. I doubt if there is any FEMA expert on the portal.
Apologies but I guess you should consult a FEMA Expert in this matter.
Repatriation will be done as per FEMA rules and after the deduction of statutory dues.There is a limit for repatriation per Financial year for NRI.
I assume that the query has already been resolved by my fellow colleagues, feel free to get back in case any part of it has been left unattended.
