- FEMA Overview
- Inbound Investment- FDI in India
- FDI in Limited Liability Partnerships (LLP)
- Outbound Investment- Overseas Direct Investment
- Remittance facilities for Resident Individuals under the Liberalised Remittance (LRS) Scheme
- Compounding of Contraventions under FEMA
- Representing FEMA contraventions before Enforcement Directorate (ED)
- External Commercial Borrowings
- Investments by Non Resident Indians (NRIs)
- FEMA Audit
Investments by Non Resident Indians (NRIs)
India offers attractive investment opportunities to NRIs. Real Estate Sector, Portfolio Investments, Debt and Debt Securities, Deposits with Banks are the major investment opportunities that are available to NRIs. NRI investment options in India are briefly explained hereunder:
Indian Real Estate investment is only open to NRIs and not to foreign nationals or foreign companies. NRIs can make investment in Residential or Commercial property. NRIs however cannot invest in properties of Agricultural, Plantation or Farm house nature.
Repatriation facility in case of commercial and residential property is available up to two properties, that too for the amount of investment and not for appreciation. However, appreciation from two such properties can be repatriated under USD 1 Million scheme (known as Remittance of assets Scheme). Also point to note is that there is no restriction on number of properties in which NRI can make investment. But, intention should be to invest in properties and not to trade.
Indian stock markets are open for investment by NRIs on Repatriable basis as well as on Non Repatriable basis. Listed securities be it equity shares, equity linked instruments or debt securities, NRIs can make invest in each of these securities. Dividend and interest on securities is also eligible for repatriation.
Deposits with Banks
NRIs can place deposits with Indian banks in the form of NRO/NRE/FCNR. NRO (Non Resident Ordinary) deposits represent Non Repatriable investment and since interest gets credited to the same account, it also bears the Non Repatriable character. However, NRI can avail USD 1 Million Scheme to repatriate funds from NRO Account.
NRE (Non Resident External) deposit is available as Repatriable Investment. It also carries an attraction of being tax exempt and hence interest on NRE Account not liable to withholding tax / tax deduction. Funds can be transferred from NRO Account to NRE Account by complying with certain procedures prescribed under Indian Income Tax Act.
FCNR Deposit is also available as Repatriable Investment and it also offers tax exempt interest.
Other Investment opportunities
Loans to close relative in India can be given by NRI or Overseas Citizen of India (OCI). NRI/OCI can also invest in Government dated securities, Bonds of Public Sector Undertakings, Bonds or units issued by infrastructure debt funds. NRI may also subscribe to National Pension Scheme, the annuities/accumulated savings is repatriable.
NRI/OCI can also invest in units of Mutual Funds on repatriation as well as non repatriation basis.
NRI/OCI can also become partner in LLP. Investment in LLP can also be on repatriation as well as on Non Repatriation basis. In case of Non Repatriable investment, the route of USD 1 Million is available for repatriation.
Investment on Non-Repatriation basis
NRIs have option to make FDI in India either under non-repatriation basis or repatriation basis. Any investment made by NRIs in India on non-repatriation basis will be treated as domestic investment at par with investment made by residents.
Even investments made by a company, trust or partnership firm incorporated outside India and owned and controlled by NRIs in India, will be treated as domestic investment at par with investment made by residents.
Our service offering in this segment includes advising and assisting on various investment options for NRIs, advice on Foreign Exchange Regulations (FEMA) provisions with regards to investment by NRIs in India and also advice on Income Tax implications thereon.