Legal Question in Business Law in India

Re: NRI forming Private company : its Status

Any business can be transfered

Re: NRI forming Private company : its Status

We thank you for referring this query to us. Subject matter is our core area of specilisation, we shall be able to satisfy your queries satisfactorily.

NRI can form a Private Limited Company in India subject to the requirements prescribed under Indian Companies Act e.g. minimum directors & shareholders to be 2 in case of PVT. Company etc..

However investment by an NRI/person resident outside India are governed by the Foreign Direct Investment regulations.

In Hotel /restaurants business the foreign Direct investment is allowed up to 100%, hence the company which is in the business of hotel/ restaurants can transfer its 75% to NRI.

However on transfer of such shares certain forms needs to be filed with authorized dealers.

For any clarification feel free to contact.

For Falcon Services

Vimal Kishor

Re: NRI forming Private company : its Status

Yes, it is possible. This can be done.

Re: NRI forming Private company : its Status

Yes, NRI can make investments and can form Pvt. Ltd. Company depending upon the business. Now as far as the hotel business is concerned it comes under infrastructure and service industry sector wherein the maximum permissible foreign investment is 49% and the management should be Indian. As such transfer of 75% of shares to an NRI is not permitted.

Re: NRI forming Private company : its Status

yes a NRI can form Pvt ltd. company in India. Yes a company can sell upto 100% of its shares to NRI in Hotel and Restaurant business. For further information and advise I need more information.

regards

Nand Kishore, Advocate