Compliance under FEMA

This query is : Open

Rajeswar (Querist)
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03 November 2009 Dear members,

Kindly claarify me on the following:

A private limited co. is to be formed for the purpose of carrying on real estate business (construction of residential premises)in India? The company is to receive funds from abroad for the share capital. What formalities are there that we have to take care of for receiving such funds in a Pvt. Co as under FEMA, RBI & Cos Act?
Is the co. restricted from obtaining FDI for carrying on the above business?

regards

Raja rajeswari S

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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03 November 2009 No - as far I know you can't receive funds from abroad , read the related notification point 3 in the link given below

http://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=5094#16

Rajeswar

Rajeswar (Querist)
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04 November 2009 DEAR SIR,

MANY THANKS FOR UR REPLY.

As per the FEMA notification which u have specified, real estate business comes under the prohibited area with some exceptions.
Will the above company come under such exception(business being promotion & construction of residential & commercial building) so that it could enjoy the FDI under Automatic Route?

Plz do confirm me sir.

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