Fema - fdi

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G S Pradeep (Querist)
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14 January 2012 Dear Sir,

Can a person of Indian Origin/spouse of Indian origin can start multibrand retail business in India?

Please confirm the same.

According definition of Person resident India means who comes to India for business become person resident India.

FDI definition includes only Non resident entity or Person resident outside India (NRI).

I am confused. Please clarify and explain me.

Thanks in advance.

Regards
Deepu

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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15 January 2012 The answer is NO.

Anuj

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Vishal D Shah

Vishal D Shah (Expert)
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16 January 2012 Just to clarify further I agree with your interpretation. You can start multi brand but you cannot bring in foreign exchange as it shall become fdi !
Hope confusion is gone now. Technically you are correct in one interpretation but you cannot ignore other sentence of law. Still you want to brain storm Pl welcome.

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G S Pradeep

G S Pradeep (Querist)
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16 January 2012 Thank You Mr.Anuj and Mr.Vishal.

I have one more doubt. If a person of Indian origin comes to India and bring share capital in the form of Rupee, then FDI apply for the same?

Please confirm.

I am just finding ways to Invest in India by Person of Indian origin for retail business.

Is it possible on Non repatriation basis?

Thanks in advance.

Regards
Pradeep GS

Vishal D Shah

Vishal D Shah (Expert)
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16 January 2012 Yes under schedule 4 on non repatriation basis as same shall not be considered fdi.

Cavishalshah@gmail.com

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G S Pradeep

G S Pradeep (Querist)
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16 January 2012 Thank you Mr.Vishal.

Pradeep GS

G S Pradeep

G S Pradeep (Querist)
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16 January 2012 Dear Mr.Vishal,

Schedule 4 is automatic route is it?

Regards
Pradeep GS

Vishal D Shah

Vishal D Shah (Expert)
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16 January 2012 Yes. Are you in consultancy company?

Cavishalshah@gmail.com

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G S Pradeep

G S Pradeep (Querist)
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16 January 2012 Yes I am in consultancy company.

Thanks for clearing my doubt.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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16 January 2012 Pradeep,

Although technically Schedule 4 is automatic and hence you can bring in FDI on non-repatriation basis for the same, but only for the things permitted under FEMA. I had a ocassion to deal with the same and my view is that investment by NRI in multi brand retail is not allowed.

Even there was a recent news that RBI wants scrapping of schedule 4.

Also person of Indian origin who comes to India to undertake business shall become resident as per FEMA only when he has stayed for more than 182 days in previous year,before the current year.

Anuj