FEMA

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CS Sandip Rahane (Querist)
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24 September 2009 Sir,
Our private limited company issued Rs.2.5 crores shares with premium to Foreign National (Individual) in the year 2001. But that time company not complied with RBI procedures and not filed the Form FC-GPR and also company not having FIRC certificate.

Now company wants to return the same amount to foreign national (Individual) by transferring his shares to one of company’s director. So, wht procedure should we have to follow and which compliances have to do for RBI?

Take into consideration the situation:
The company is sick company and is in losses from last 7-8 year. The business of company is strike off and there are no any employees on the pay roll of the company, they left the job by giving resignation.
We (company) are not having any proof of remittance by bank. We received the remittance through Bank of Maharashtra, Pune.

Let me know in detail what procedure should have to do for company. Expecting your kind co-operation for sort out the matter.

Thanking you,
CS Sandip Rahane.

Shaurya

Shaurya (Expert)
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24 September 2009 Hi Sandeep,

First of All, request the concerned AD bank to provide you duplicate FIRC towards the funds remitted in 2001. After procurement of the same comply with necessary reporting guidelines with RBI. In this regard u can also meet with some official of Concerned RBI regional office to guide you as to what is to be done.

After reporting, follow the trnsfer procedure and comply with transfer reporting FC TRS with necessary enclosures.

Hope this clarifies.

Regards,

Shaurya