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Investment abroad,FEMA requirement?

27 January 2011

An india based hospital(company) is planning to invest in abroad in hospital industry abroad wat r the requirements of FEMA to be compiled with.?i knw tat prior permission of RBI is required if it is hospital industry...Are there any limits on investment?there r routes of investment Automatic Route & Non Automatic Route.wat r these routes....could some one elaborate?wat r the rules to be complied as per FEMA...Pls advice?

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CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7024 Points)
Replied 28 January 2011

The requirements are to file Form ODI after the remmitance to foriegn party . And annually to file form APR with in 90 days of close of financial year of foreign company.

No permission of RBI is required if it is hospital industry.

The limit is 400% of the net worth of Indian Party as on last balance sheet date i.e.31st march 2010.

The investment shall be covered in Automatic Route.

Anuj

9810106211

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Learning to Live. (-----) (108 Points)
Replied 28 January 2011

Thanx a lot CA Anuj Gupta Sir...

"Registered Trusts and Societies engaged in manufacturing / educational sector or who have set up hospital(s) in India can invest in a JV / WOS outside India, in the same sector, after obtaining prior permission of RBI. "

Secondly under automatic route...Net worth route shall be adopted rite...400% limit.

Lastly where can be form ODI obtained from?

Again thanx a ton for ur expert advice.

Learning to Live. (-----) (108 Points)
Replied 28 January 2011

Are u sure that prior permission of RBI is not required to invest abroad for hospitals?

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7024 Points)
Replied 28 January 2011

You have already mentioned that your case is of Company, hence there is no requirement of approval.Also just google for form ODI.

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Learning to Live. (-----) (108 Points)
Replied 28 January 2011

yeah i got ur point....Thanx .

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 29 January 2011

Agree with the learned member...

Further, to know the details you can see the Master Circular issued by RBI every year.

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Learning to Live. (-----) (108 Points)
Replied 29 January 2011

Originally posted by : CS Ankur Srivastava
	Agree with the learned member... Further, to know the details you can see the Master Circular issued by RBI every year.