Corporate complicacy for nri- questions
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 September 2011
Hi,
I am a founder/shareholder/director & managing director of 2 pvt. ltd. companiese in India. In july I got my residents visa for Japan as I wanted to start a company there too, but to avoid the complicacy of RBI to open an overseas branch I register a new company there as a Japanese company in Sept.2011.
Now my queries are as follows:
1. Do I have to declare myself as an NRI to ROC/MCA/Income Tax? if yes can this declaration wait for 3 more years as I will have a permanent residency there after 3 years?
2. What shall I do with my existing bank accounts (1 Joint account with my wife (who is a PIO) and others single)?
3. Shall I continue pay the installments of the property I bought in joint name with my wife (I have already paid half of the amount and more half to go) ? What if I decide to sell this property?
4. Can I have an NRE account which is 100% repatriablity? Can I maintain both NRE account and resident's account simuntaniously?
5. Can I continue to hold the post of Director/ Managing Director or shareholder in the Indian Companiese?
Thank you in advance and sorry for the complicated queries.
Regards,
JC
I am a founder/shareholder/director & managing director of 2 pvt. ltd. companiese in India. In july I got my residents visa for Japan as I wanted to start a company there too, but to avoid the complicacy of RBI to open an overseas branch I register a new company there as a Japanese company in Sept.2011.
Now my queries are as follows:
1. Do I have to declare myself as an NRI to ROC/MCA/Income Tax? if yes can this declaration wait for 3 more years as I will have a permanent residency there after 3 years?
2. What shall I do with my existing bank accounts (1 Joint account with my wife (who is a PIO) and others single)?
3. Shall I continue pay the installments of the property I bought in joint name with my wife (I have already paid half of the amount and more half to go) ? What if I decide to sell this property?
4. Can I have an NRE account which is 100% repatriablity? Can I maintain both NRE account and resident's account simuntaniously?
5. Can I continue to hold the post of Director/ Managing Director or shareholder in the Indian Companiese?
Thank you in advance and sorry for the complicated queries.
Regards,
JC
30 September 2011
Dear Sir
Please take note that A definition given by some statutes like RBI ACT, FEMA etc provides NRI as:-
Indian citizens who stay abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.
Indian citizens working abroad on assignments with foreign Governments, Government agencies or international / multinational agencies like United Nations Organisations . International Monetary Fund, World Bank etc. Official of Central and State Governments and Public Sector undertakings deputed abroad on assignments with foreign Government/agencies/organisations or posted to their own offices (including Indian Diplomatic Missions) abroad.
so this is not matter of declartaion by you as NRI.
2.As far as Accounts are concerned there are 4 options as you can open NRE,FCNR,RFC Account...it depends on repatriation ,no doubt, NRO Account is some thing good as it attracts good interest rate as 10.25% approximately.and i think you will have need to make/receive some payments in future which you can give through this account....NRE account is also good because having 100% repatriation facility.SO it depends upon your choice.
3.you can continue instalments as far as i think you can have any immovable property in india not agriculture land,farm house etc...
4. you can hold the position which you alredy have in the companies .
I hope your query solved if you want any further assistance on specific issue feel free to contact me on cssurajarora@gmail.com
Please take note that A definition given by some statutes like RBI ACT, FEMA etc provides NRI as:-
Indian citizens who stay abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.
Indian citizens working abroad on assignments with foreign Governments, Government agencies or international / multinational agencies like United Nations Organisations . International Monetary Fund, World Bank etc. Official of Central and State Governments and Public Sector undertakings deputed abroad on assignments with foreign Government/agencies/organisations or posted to their own offices (including Indian Diplomatic Missions) abroad.
so this is not matter of declartaion by you as NRI.
2.As far as Accounts are concerned there are 4 options as you can open NRE,FCNR,RFC Account...it depends on repatriation ,no doubt, NRO Account is some thing good as it attracts good interest rate as 10.25% approximately.and i think you will have need to make/receive some payments in future which you can give through this account....NRE account is also good because having 100% repatriation facility.SO it depends upon your choice.
3.you can continue instalments as far as i think you can have any immovable property in india not agriculture land,farm house etc...
4. you can hold the position which you alredy have in the companies .
I hope your query solved if you want any further assistance on specific issue feel free to contact me on cssurajarora@gmail.com
07 October 2011
Expert is correct and I am of the same opinion
21 October 2011
1. Do I have to declare myself as an NRI to ROC/MCA/Income Tax? if yes can this declaration wait for 3 more years as I will have a permanent residency there after 3 years?
Nothing required from your en in this regard.
2. What shall I do with my existing bank accounts (1 Joint account with my wife (who is a PIO) and others single)?
Convert them to NRO A/c.
3. Shall I continue pay the installments of the property I bought in joint name with my wife (I have already paid half of the amount and more half to go) ? What if I decide to sell this property?
You can pay the installment and when you decide to sell the property,then ideally you shall clear your loan from the money received from sale of property.
4. Can I have an NRE account which is 100% repeatability? Can I maintain both NRE account and resident's account simultaneously?
You can maintain NRO and NRE simultaneously
5. Can I continue to hold the post of Director/ Managing Director or shareholder in the Indian Companies?
Yes
Anuj
+91-9810106211
femaquery@gmail.com
Nothing required from your en in this regard.
2. What shall I do with my existing bank accounts (1 Joint account with my wife (who is a PIO) and others single)?
Convert them to NRO A/c.
3. Shall I continue pay the installments of the property I bought in joint name with my wife (I have already paid half of the amount and more half to go) ? What if I decide to sell this property?
You can pay the installment and when you decide to sell the property,then ideally you shall clear your loan from the money received from sale of property.
4. Can I have an NRE account which is 100% repeatability? Can I maintain both NRE account and resident's account simultaneously?
You can maintain NRO and NRE simultaneously
5. Can I continue to hold the post of Director/ Managing Director or shareholder in the Indian Companies?
Yes
Anuj
+91-9810106211
femaquery@gmail.com
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 October 2011
Thank you all for your precious time to reply my queries.
Best regards,
JC
Best regards,
JC
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