Buying Shares from Non-resident to resident

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Easwara Moorthi (Querist)
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13 November 2009 Hi,
We are 6 people partnership firm based in Erode, Tamil Nadu. We want to takeover a private limited company 100% owned by foreign nationals. They are French husband and wife owning 50% shares each.
1) Can the partnership firm own shares in Pvt limited company?
2) If not, Can the buyers use the Partnership firm to route money to remit to the sellers, and acquire shares in the name of partners?

Thanks a lot for your assistance,
Easwar

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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14 November 2009 A partnership firm cannot invest in shares of a private limited company as per companies act.

You have to open savaings accounts in each individual name and tranfer the funds from partnership to individuals.

Individuals should pay to the foreign national and after purchase you have to file the required forms to RBI.