Forming subsidiary abroad

Hi All,

I am interested in buying stake in Singapore company owned by my friend. Just wanted to understand can an Indian Individual buy stake in unlisted Singapore company, if yes then, is there any limt on percentage of shareholding that an individual can buy. The Singapore company that I am interested in buying stake is involved in commodity trading business in Singapore.

Please guide me.

YEs individual investor can invest in the equity shares of Foreign company subject to the condition prescribed with guidelines framed by RBI.

As per RBI Liberalized Remittance Scheme for Resident Individuals vide Foreign Exchange Management Regulations,2000-Circular No.64 dated Feb 4, 2004 , all Resident Individuals may freely remit upto USD 200,000 per financial year for any permissible current or capital account transaction or combination of both.

Under the scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets  outside India, without prior approval of the RBI.

 So from the above scheme we are free to invest  equity in foreign subsidiary Company without taking approval from RBI through  the automatic route subject to the limit prescribed of USD 200,000.

for further clarification require you just join the page link given below

https://www.facebook.com/groups/274102652657876/

Thanks for information.

I have one more doubt:

Can Indian Resident Individual buy 100% equity of overseas company, which is involved in commodities trading in foreign exchange, under  Liberalized remittance Scheme if value of 100% equity in under USD200,000 ?
If this is possible then, Is this under automatic route or Individual needs to take any permission ?

Thanks for information.

I have one more doubt:

Can Indian Resident Individual buy 100% equity of overseas company, which is involved in commodities trading in foreign exchange, under  Liberalized remittance Scheme if value of 100% equity in under USD200,000 ?
If this is possible then, Is this under automatic route or Individual needs to take any permission ?

According to my limited Knowledge concern on  Fema, The LRS is specialy prohibited Remittance for trading in foreign exchange abroad;

link : ( point iv Q3 )  https://www.rbi.org.in/Scripts/FAQView.aspx?Id=66

For any further clarification required you can call me or Mail me ...

My Mail Id is Cajaikritmalik @ hotmail.com

Thank you 

Jaikrit Malik