What provisions of RBI shall be complied with when a foreigner invests in an Indian domestic company?

What provisions of RBI shall be complied with when a foreigner invests in an Indian domestic company?

Information 01.09.2017   0 Comments   502  Add to Reading List

Any investment by a foreigner should be in accordance with principles of FDI permitted in Indian Markets. RBI is the regulatory body for Foreign Direct Investment. Any such investment is governed by Foreign Exchange Management Act. Following compliances are mandated by RBI: > Without Prior Permission, Foreign Investment can be obtained through Automatic Route only. > Sectors allowed to do are specified in Annex B of Schedule 1 to Notification No. FEMA 20. For all other sectors, you need to obtain Permission from Government and route is called as Approval Route. > Issuance of Instrument for receiving Foreign Investments should be in accordance with RBI Guidelines. > Maintaining a Foreign Currency Remittance Account (FCRA) and not receive FDI in Ordinary accounts. > Any Investment received to be reported to RBI. > Company’s share valuation should be done by a practicing Chartered Accountant using the DCF method. Wazzeerians have handled Funding Compliance matters for startups in India to raise funding from domestic and international investors for years now. We should be in a position to help you too


Visit HireCA.com Now

Get All your Work Done By Expert visit Hireca.com Or Whats app your Query At : 9873139513 or mail at hi@hireca.com