OVERSEAS INVESTMENT

[SANJAY RAWAL]

PLEASE CONFIRM IF FOLLOWING INTERPRETATION IS CORRECT

1. A RESIDENT INDIVIDUAL CAN REMIT USD 200000 PER ANNUM(UNDER LIBERALISED SCHEME) FOR INVESTMENT IN INCORPORATED jOINT VENTURE ABROAD.IF INVESTMENT IS BEYOND USD 20000 THEN PERMISSION FROM RBI IS REQUIRED

AI Summary

Residents Can Remit Up to USD 200,000 Annually Under Liberalised Remittance Scheme; Company Setup Abroad Not Allowed A resident individual can remit up to USD 200,000 per financial year under the Liberalised Remittance Scheme for any permitted capital or current account transaction. However, this remittance cannot be used to set up a company abroad, though acquiring shares is allowed. If the investment exceeds USD 200,000, other schemes may be considered. Permission from the Reserve Bank of India (RBI) is required for investments beyond this limit.