Foreign investment policy specifically provides that non-resident can invest in specified Indian entities. These entities include an Indian company, a firm, a Limited Liability Partnership. (In case of a firm and an LLP, there are restrictions and conditions attached). A trust is primarily not a permitted entity.
Can a foreign trust own property in India?
Yes, the trust can acquire properties and hold properties through the trustee for the benefit of the beneficiaries. Trusts do not have a separate legal personality under Indian law.
How can a foreign company invest in India?
Foreign Direct Investment (FDI) is the investment through capital instruments by a person resident outside India (a) in an unlisted Indian company; or (b) in 10 percent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company.
Can an NRI invest in Indian company?
NRIs are allowed to invest in shares of listed Indian companies in recognised Stock Exchanges under the PIS. NRIs can invest on repatriation and non-repatriation basis under PIS route upto 5% of the paid up capital / paid up value of each series of debentures of listed Indian companies.
Can foreigners be trustees in India?
Despite all this, there is no explicit restriction on an NRI becoming a trustee in an Indian trust. … The NRI person must be competent to enter into a contract as per Indian Contract Act, 1872. You should also note that a trust in which an NRI is a trustee can not do anything which is prohibited in India for the NRIs.
Can a trust be sued in India?
If a number of trustees exist, they are the joint owners of the property. … Thus it appears that the “Trust” is not capable of suing and being sued in a Court of law, even though the trustees can maintain and defend suits for the preservation and protection of the trust – property.
Can trust accept foreign donations?
Unless one has FCRA Prior Permission or FCRA Registration, one cannot accept donation (in any currency including INR, even from NRO or NRE acct)/ contribution in kind exceeding Rs 25,000 (excluding personal gifts)/ hospitality/ CSR support—from a foreign source.
Can an Indian individual invest abroad?
Resident individuals are permitted to make overseas investments without any limit in listed overseas companies that have at least 10% share in an Indian company listed in a recognized stock exchange in India as on 1st January of the year of investment.
Who controls FDI in India?
Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provisions of the Foreign Exchange Management Act (FEMA) 1999. Reserve Bank of India has issued Notification No. FEMA 20/2000-RB dated May 3, 2000 which contains the Regulations in this regard.
Who is NRI as per RBI?
Definition of NRI/PIO
NRI for this purpose is defined as a person resident outside India who is citizen of India. In terms of Regulation 2 FEMA Notification No. 13 dated May 3, 2000, Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India.
Can NRIs buy unlisted shares?
NRIs can invest in unlisted shares on a non-repatriation basis, NRIs also can buy shares on a repatriation basis in which case the transaction must be reported to RBI.