Rental deposit paid by foreign holding company on behalf of India subsidiary

This query is : Resolved

Gomathi Sundar (Querist)
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13 July 2023 Indian company gets monetary support in the form of funding for rental deposit from a foreign company at the time of setting up business ie pre incorportion. The foreign company subsequently becomes a 100% holding company of the Indian company.

Now the Indian company want to reimburse the deposit paid to foreign holding company.

Can I understand the procedure involved in light of FEMA.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 July 2023 Investment outside India under the automatic route can be made to set-up a new company abroad (JV or WOS). This can only be done by an Indian Company set-up under the Companies Act' 1956.