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bhupendra (Management Trainee)     06 August 2010

NRI SETTING UP INVESTMENT CO.

whether an NRI can set-up an Investment Company in India for purely investment purpose???? is possible to to bring funds from foreign country and invest in indian capital market?


Learning

 7 Replies

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     06 August 2010

Yes he can do it if the company is regd in India, if not registration with SEBI essential.

1 Like

bhupendra (Management Trainee)     06 August 2010

sir, i did not get your point. please bare with me...my query is can we incorporate a private company in india promoted by an NRI. whose intention is to bring funds from guslf country and invest in indian capital market? what will be the procedure? i mean apart from Companies Act, 1956, what other procedure we will have to follow for incorporating the co.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     06 August 2010

Yes you can do it.

If the company is incorprated in India and majority with Indian shareholders no prolbem.

If majority is even NRI , you have to take permission from SEBI for investment in share market.

For other invesments there is automatic approval window.

S. Bharath (Advocate and Arbitrator Formerly Civil Judge)     06 August 2010

Mr. Bhupendra, it is useful for you to visit the website of the Investment Commission of India at https://www.investmentcommission.in/

Shayan Khan (B.com)     06 August 2010

you will be required the prior permission of RBI also.

Jaya Pathak (advocate and tax consultant)     07 August 2010

There are a couple of restrictions imposed under FEMA which will be required to be looked into, also certain specific approvals may be required to be taken depending upon the ownership and capital contribution structure of the Company.


(Guest)

As regards NBFC is concerned any NRI can set up a finance company in India. However, RBI & MOC has made laws stringent now for setting up of the same. NRI intending to set up an Investment or Finance company needs compulsorily two directors who are resident directors stationed in India. Funds from foreign country are regulated by SEBI and MOC as per norms and that it should not be coming from Cayman Island and Mauritius as these countries have been black listed. Funds coming from USA need to have clearance from Federal Government and fund regulating authorities. 


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