FDI by a USA Citizen, FEMA

[RAJEEV JAIN]

Dear all,

Please throw some light on whether a person (being a USA resident and citizen) can hold shares in his own name if he transfers funds from his company in which he is a shareholder and Director in USA?

For Eg. Mr A wants to be a shareholder in ABC Ltd in India but wants to transfer funds to ABC ltd from XYZ Inc. USA and become shareholder of ABC Ltd himself. Mr. A is not bringing funds from his own bank account.

Thanks in advance.

Posts / Replies

[YAGAY and SUN]

There are only two modes:

Automatic Route

Approval Route

In this matter we understand that necessary permission is required from RBI.

[DR.MARIAPPAN GOVINDARAJAN]

You may have to comply with the provisions of the Companies Act, 2013 also.