Sathya (Trainee) (32 Points)
03 September 2011we are a solar based private limited company. we have two shareholders one an indian investor having 24% equity and other one USA NRI based company having 76% equity.
Now the querry is whether the indian company have to intimate the receipt from NRI company.
please state the RBI Regulation for investment by a USA NRI Company in INdian Company.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 04 September 2011
Yes, the Indian Co. needs to intimate within 30 days of receipt of money .
It also needs to allot shares or return the share application money so received,within 180 days of receipt of money in India.
Anuj
+91-9810106211
femaquery @ gmail.com
Sathya
(Trainee)
(32 Points)
Replied 05 September 2011
Thanks sir
but we failed to intimate the RBI and the received the receipt befor 90 days
now what can we do and how can we allot shares to that NRI based USA company
Thanks in advance
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 05 September 2011
Now intimate the AD and make sure that you allot shares and file Form FCGPR before 180 days of receipt of money.
Anuj
rvsekar2000
(212 Points)
Replied 24 September 2011
Hello,
FEMA says that if no allotment is made within 180 days from the date of receipt of money from NRI or non-resident , the company has to immediately return the same to the non-resident investor.
As you have not informed the RBI within 30 days , but the money is with company wellwithin the 180 days , you can approach your regional RBI and report the inward remittance and to request them to condone the dealy and make sure that shares are allotted within 180 days from the date of receipt of money.
If money has been with the company for more than 180 days , better you refund the money with RBI prior permission and receive the money back and carry out the RBI formalities.
Regards
R.V.Seckar
Pl do visit my blogs :
https://www.rvseckarcompanylaw.blogspot.com/
https://rvseckarfema.blogspot.com/
https://rvseckarindianlaws.blogspot.com
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