Want to know the RBI approvals or increase in authorised share capital of a pvt ltd company , if for expansion FDI is involved..
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 April 2010
For increase in authorised capital no need to take RBI approval.
For procedure kindly check the link below:
Nitin Grover
(CS)
(1228 Points)
Replied 16 April 2010
Dear Neha
Their is no need to take approval form RBI for increasing Auth. Capital and also no need to take permission from RBI or any other Authority for issuing it only intimation is required for issued capital to NRI's as per FC-GPR
Regards
Nitin Grover
Kumar
(Legal Consultant)
(358 Points)
Replied 16 April 2010
Dear Neha,
For increasing your company's authorised capital there is no need to get any approval from the RBI from FEMA prospective provided the company activities are under automatic route.If it not so then it is advisible to take appropriate approval from the RBI or FIPB depending upon what the present activities are of your company and also the status of the remmiter that is non-resident who is remmiting such money in the company.
Assuming that your company activities are covered under automatic route and hence no approval is required.Only you have to intimate the RBI towards receipt of money from outside within 30 days from the date of receipt of money in the company's account.Post receipt when at the time of any allotment of any share to the non-resident you have report to the RBI through the form FC-GPR.
Trust this is clear.Kindly get back for any further help.
Thanks & Regards
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 16 April 2010
| Originally posted by : Kumar | ||
 |
Dear Neha, For increasing your company's authorised capital there is no need to get any approval from the RBI from FEMA prospective provided the company activities are under automatic route.If it not so then it is advisible to take appropriate approval from the RBI or FIPB depending upon what the present activities are of your company and also the status of the remmiter that is non-resident who is remmiting such money in the company. Assuming that your company activities are covered under automatic route and hence no approval is required.Only you have to intimate the RBI towards receipt of money from outside within 30 days from the date of receipt of money in the company's account.Post receipt when at the time of any allotment of any share to the non-resident you have report to the RBI through the form FC-GPR. Trust this is clear.Kindly get back for any further help. Thanks & Regards |
 |
Thank you sir for the reply
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 16 April 2010
As per my own understanding increase in authorized capital has nothing to do with automatic or FIPB route. In fact increase in authorized capital is not in the domain of RBI and simply involve ROC procedure.
Things may be different for a NBFC company. But for a NBNFC filing with ROC is enough.
Regards
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 16 April 2010
Mr Ankur Garg
I think this is what is spelt out but what Mr Kumar says is that on receipt of money from abroad towards capital we have to intimate RBI within 30 days and not for increasing its share capital we require RBI Permission
Ashis Mahapatra
(Consultant-Tax & FEMA/FDI)
(183 Points)
Replied 17 April 2010
Variation of Authorized capital fall under Companies Act 1956.So ROC approval is required for that.Its nothing to do with RBI/FIPB...But at the same time you need to check the ceiling / propertion (%) of foreign Equity/FCCB participation is remain intact with requirements of FDI guidelines all the time. It has an overiding effect over Companies Act.
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