IF ANY PERSON RESIDENT OUTSIDE INDIA AS PER FEMA ACT AND HE WANT TO INVEST IN AN INDIAN COMPANY THROUGH THE MODE OTHER THAN INVESTMENT IN SHARE CAPITAL THEN WHAT ARE THE LEGAL REQUIREMENTS FOR SUCH INDIAN COMPANY AND FOR SUCH PROI AS PER RBI AND FEMA ACT..?
3 Replies
ANTONY EDGAR
(CA in Practice)
(89 Points)
Replied 30 November 2012
Neeraj, Can you be little more specific regarding what kind of investment and what is the nature of business of the indian company..
neeraj
(student)
(184 Points)
Replied 01 December 2012
| Originally posted by : ANTONY EDGAR | ||
 |
Neeraj, Can you be little more specific regarding what kind of investment and what is the nature of business of the indian company.. |
 |
dear investment like loan, debentures etc.
indian company is construction company and it is private limited co.
ANTONY EDGAR
(CA in Practice)
(89 Points)
Replied 01 December 2012
Mr.Neeraj,
Borrowing of the person resident in India in foreign currency is governed by FEMA regulations (borrowing and lending). As per the schedule to this regulation, a company can borrow funds in foreign currency for corporate purposes with the prior approval of RBI.
However, there are certain limits prescribed for the amount of the borrowing, tenor and interest rate.
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