Can a Resident Indian gift shares of Foreign Company to Non Resident? Whether any reporting need to be done under LRS/ODI?

Some Bankers are saying no need to file ODI in case of Investment by individuals

Jayantilal Thakkar Associates

In case of payment to consultant for incorporating the subsidiary overseas, the payment, which includes reimbursement of statutory charges, is to be made before the starting of process for incorporation. In such a case how to capitalise the expenditure in the books of overseas WOS? Does RBI accept payment to consultant by Indian party to be capitalised to overseas WOS?

Jayantilal Thakkar Associates

‘Indian party’ under ODI regulations does not include individual. Any issues?

Jayantilal Thakkar Associates

Whether investment in FZE in UAE is treated at par with investment in proprietary concern and therefore will require prior RBI approval?

Jayantilal Thakkar Associates

Whether approval of RBI is required for overseas investment in LLP

Jayantilal Thakkar Associates

An Individual holding funds outside India when he was non-resident. On permanently returning to India he discloses the same to Indian Authorities. Thereafter, if he make any investment in JV/WOS outside India from those funds, whether he need to report to RBI the same or take prior approval?

Jayantilal Thakkar Associates

Whether transfer of intangible to WOS can be capitalise in lieu of shares

Jayantilal Thakkar Associates

Whether any approval is required for Swap of Shares of two overseas subsidiaries?

Jayantilal Thakkar Associates

Whether an overseas bank account opened in violation of FEMA can be continued once a declaration is made under the Black Money Act or do you need to wind up the account and bring back the proceeds to India?

Jayantilal Thakkar Associates

Some parts of Form ODI are not applicable to individuals (like NIC code) still AD are insisting the same and creating issues

Jayantilal Thakkar Associates

Whether individual making investment under LRS ODI scheme needs to file FLA

Jayantilal Thakkar Associates

FEMA Notification does not have any provision for Voluntary/Compulsory Liquidation/ Winding up of JV/WOS, whereas Title of Form ODI Part IV states “Report on Closure/Disinvestment/Voluntary Liquidation/Winding Up of JV/WOS”

For example BVI has law that if a company does not file annual report for 2 years it is wound-up automatically. In this case whether reporting under Part IV of ODI Form is to be done?

Jayantilal Thakkar Associates

Whether any reporting is required in case of change of control of a JV WOS (Eg. Strategic Partner comes in at JV / WOS level or in case of merger of two foreign companies, etc.).

Jayantilal Thakkar Associates

Whether trading in shares on proprietary/own basis would get covered under financial service activity.

Jayantilal Thakkar Associates

Interpretation of Step Down Subsidiary

Automatic Route for Operation SDS

Allied issues

Jayantilal Thakkar Associates

Trust model

Company model

Prior Permission

Income Tax implication

Jayantilal Thakkar Associates

THANK YOU

Jayantilal Thakkar Associates