Investment abroad in foreign unlisted company by Resident individual

[Guest]

A Resident individual is proposing to invest abroad in a foreign unlisted company. What are the compliances that are required to be done by the individual while investing the money abroad? what are the formalities to be complied with the RBI and the Central Governement. Is Form 15CA required to be filed?

upto what limit can the amount be invested? is it USD 200,000 as has been stated in the recently updated Liberalized Remittance Scheme?

Kindly Clarify.

Venkatesan .K

[Anuj Gupta]

For resident individual it shall be beneficial to use the LRR scheme for investing upto USD 200,000.

Form 15CB shall be required for the same.

AI Summary

Guidance on Investing in Foreign Unlisted Companies: Use LRS Up to USD 200,000, File Form 15CB Required for Compliance. A resident individual is considering investing in a foreign unlisted company and seeks guidance on compliance requirements, including necessary formalities with the Reserve Bank of India (RBI) and the Central Government. The individual inquires if Form 15CA is required and the investment limit under the Liberalized Remittance Scheme (LRS), which is USD 200,000. A response suggests using the LRS for investing up to this limit and notes that Form 15CB is required for the transaction.