Saturday, February 14, 2015

Overseas Direct Investments (ODI) by proprietorship concern / unregistered partnership firm in India – Review

It has been decided that the following revised terms and conditions are required to be complied with for considering the proposal of ODI, by a proprietorship concern / unregistered partnership firm in India, by the Reserve Bank under the approval route:

  • The proprietorship concern / unregistered partnership firm in India is classified as ‘Status Holder’.
  • The proprietorship concern / unregistered partnership firm in India has a proven track record, i.e., the export outstanding does not exceed 10% of the average export realization of the preceding three years and a consistently high export performance.
  • The proprietorship concern / unregistered partnership firm in India is KYC (Know Your Customer) compliant, engaged in the proposed business and has turnover as indicated.
  • The proprietorship concern / unregistered partnership firm in India has not come under the adverse notice of any Government agency and does not appear in the Exporters’ Caution list.
  • The amount of proposed investment outside India does not exceed 10 per cent of the average of last three years’ export realisation or 200 per cent of the net owned funds of the proprietorship concern / unregistered partnership firm in India, whichever is lower.

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