nri zone line cyber logo

INVESTMENT WITH REPATRIATION BENEFITS

imageINVESTMENT IN EQUITY /PREFERENCE SHARES/CONVERTIBLE DEBENTURE THROUGH STOCK EXCHANGES IN INDIA :
Single Investors (NRI) can invest upto 1% of paid up capital with an overall ceiling of 30% of the total paid up capital of the company/paid up value of Convertible Debentures of particular series. The investment has to be done through one particular authorised bank in India. Permission from RBI in Form RPI is required.

imageINVESTMENT IN NEW ISSUES OF INDIAN COMPANIES UNDER 40%
SCHEME :

NRIs are allowed to invest in new issues of equity/preference shares, and convertible debentures of any new or existing Indian Company. Provided the aggregated value of investment does not exceed 40% of the face value. Indian company seeking investment from NRIs has to take permission from RBI. There is no separate permission is required for individual NRIs.

imageINVESTMENT IN PRIORITY INDUSTRIES UNDER 100% SCHEME :
NRIs are allowed to invest in new issues of equity/preference shares, and convertible debentures of any new or existing Indian Company (listed in Annexure III to the Government of India's statement on Industrial Policy dated 24th July, 1991). Permission for investment under the scheme is granted foreign exchange is remmitted in India through banking channels or by debit to NRE/FCNR account and should cover cost of import of capital goods, if any.
NRIs are also allowed to make investment upto 100% in Indian companies which are primarily engaged in export trading activities or in 100% export oriented units or units located in export processing zones.
However, repatriation of investment will be permissible only after unit has gone into commercial production.

imageINVESTMENT IN NON-CONVERTIBLE DEBENTURES\MASTER SHARES OF UTI THROUGH STOCK EXCHANGES IN INDIA :
There is no limit for investment in this segment except that these transaction has to be routed through only one designated bank in India. Application on Form RPI has to be submitted for permission from RBI.

imageINVESTMENT IN NEW ISSUES OF NON-CONVERTIBLE DEBENTURES:
NRIs can invest without any ceiling.

imageINVESTMENT IN SICK INDUSTRIAL UNITS ON PRIVATE PLACEMENT BASIS :
NRIs can invest upto 100% of the equity capital by purchasing directly from existing shareholders or in the form of subscription of new issues of the sick company. However, repatriation of capital and dividend is allowed after the expiry of 5 year lock in period.

imageINVESTMENT IN BANK ACCOUNTS :
In the following bank accounts full repatriation is permitted :
NON RESIDENT ( EXTERNAL ) ACCOUNT ( NRE ) :
The entire credit balance including interest thereon may be repatriated outside India without any prior approval of RBI. Rate of interest in this account is higher than NRO account. Interest accrued in NRE account is not taxable. Gifts to relatives from this account is also not attract gift tax.

FOREIGN CURRENCY (NON-RESIDENT) ACCOUNTS (BANK) SCHEME :
FCNR (BANK) account is opened and maintained as term deposits for period between 6 months to 3 years in any designated foreign currency. Repatriation from this account is permissible.

RESIDENT FOREIGN CURRENCY ( RFC ) ACCOUNT :
This is an excellent scheme was introduced for returning Indians to open and maintain foreign currency account with authorised dealers in India. NRIs are free to use deposited amount for bona fide remmittance outside India. Amount is also be available for payments in India only in equivalent Indian rupees. If the individual decides to go back abroad for attending NRI status, the funds held in RFC may be freely remitted abroad or credited to fresh NRE/FCNR account.

imageINVESTMENT IN REAL ESTATE :
NRIs may invest upto 100% of equity capital in real estate development. However, they are not allowed to trade in real estate. Repatriation of investment is allowed only after a lock in period of 3 years. Permission of RBI is required in Form ISD(R).

image INVESTMENT IN AIR TAXI OPERATIONS :
NRIs may invest upto 100% of equity capital in Air Taxi operations. Repatriation of investment and/or dividend is allowed only after a lock in period of 5 years that is also from accumulated foreign earnings. Permission of RBI is required in Form ISD(R).

imageDEPOSITS IN COMPANIES AND/OR GOVERNMENT UNDERTAKINGS WITH LIMITED LIABILITIES :
Though there is no limit, however, the amount has to be stipulated by RBI on case to case basis.

imageMany more opportunities have been extended to NRIs by Indian Government other than mentioned above. Simultaneously, State Governments have also identified projects for NRI investment and reserved industrial plots for NRIs alongwith other subsidies. We will provide you information for investment opportunities in Punjab, Haryana, Rajasthan, Himachal Pradesh, and Jammu & Kashmir.

image You can email PUSHPINDER S. MATHAROO for further information regarding investment and tax planning. He is Vice President of Protech International, involved in Tax Planning of NRIs and Project Development in North India.


| pico | business | religion | chandigarh | punjab | nri services |
|
agro based industry | for sale | opportunities | home |


CYBER CONNECTION SERVICES
S.C.O. 18, II nd Floor, Sector 17-E,Chandigarh - 160017 INDIA
Phone : 91-172-703706 Fax : 91-172-657147 email :
pushp@bizjoint.com