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

Overseas investment liberalised remittance permits annual remittances for permitted transactions but excludes setting up companies abroad.
A resident individual may remit up to the liberalised annual cap for permitted capital or current account transactions and may acquire shares abroad, but remittances under the scheme cannot be used to set up a company abroad; remittances beyond the annual cap require alternate arrangements or RBI permission.