Akash Rughani (CA Practice ) (24 Points)
07 March 2011Hi,
I have a client who wants to start a business in Honkong, for which he requires to remit some money to Honkong for investing in a partnership. I want to know upto what limit the remitances are allowed under the FEMA act, under the automatic route for Business Purposes
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 23 March 2011
This is really a grey area as under the Liberalised Remittance Scheme the funds upto USD 2,00,000/- are allowed to be remmitted freely but as per FEMA Act only companies and registered partnerships are recognized as Indian party to be eligible for outbound strategic investments by way of JV/WOS. As per this view, an individual would require prior RBI approval of RBI.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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