The Companies Act,     1956
Limited Liability Partnership Act, 2008
Foreign Exchange Management Act, 1999 (FEMA):
For Bank & Financial     Institutions
The Companies Act 2013 has received the assent of the president on 29th August 2013. Lets gear up for new Rules & Regulations for better corporate environment
   FAQs on Company Law FAQs on LLP  
                                                   FAQs on FEMA
Question - Who is Authorised Person under FEMA?
“Authorised person” means authorised dealer, money changer, off-shore banking unit or any other person for the time being authorised under section 10(1) to deal in foreign exchange or foreign securities.
Question -What are types of accounts under FEMA??
The different types of accounts under FEMA are
1.Exchange Earner’s Foreign Currency Account (EEFC)
2.Non Resident Ordinary Rupee Account (NRO)
3.Non Resident (External) Rupee Account Scheme (NRE)
4.Foreign Currency (Non Resident) Account (Banks) Scheme [FCNR(B)]
5.Resident Foreign Currency Account (RFC)
Question - What do you mean by investment on repatriation basis and non repatriation basis?
Investment on repatriation basis means the amount earned by way of sale, transfer or dividend can be remitted to the home country of investor from India and on non repatriation basis means the investor cannot remit the amount earned in India by way of sale, transfer, dividend out of India.
Question - What do you mean by currency?
Currency includes all currency notes, postal notes/orders, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank.
Question -What is foreign security?
Foreign security means any security in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency
Question -What do you mean by currency notes?
Currency notes means and includes cash in the form of coins and bank notes.
Question -What do you mean by import
Import means bringing into India any goods or services.
Question -What is export?
Export means taking out of India to a place outside India any goods or provisions of services from India to any person outside India.
Question -What is ECB?
External Commercial Borrowings (ECB) refer to commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares) availed of from non-resident lenders with a minimum average maturity of 3 years.
Question -Can a foreign national transfer his shares to Non Resident Indian (NRI)?
Yes, a foreign national can transfer his/her shares of an Indian Company to Non Resident Indian (NRI) by way of sale or gift.
Question -Is there general permission for NRI to transfer his shares to another NRI?
Yes, NRIs may transfer by way of sale or gift , the shares held by them to another NRI.
Question - Can a NRI purchase immovable property in India?
A NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farmhouse) in India.
Question - Can a foreign national acquire immovable property in India?
Yes, a foreign national can acquire immovable property in India only if such property is acquired by way of inheritance from a person who was resident in India. However, they can acquire or transfer immovable property in India, on lease, not exceeding five years without the prior permission of RBI.
Question -Who is known as Person of India Origin?
Person of India Origin is defined as a citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b)
Question - What is meant by deposit?
Deposits mean “term deposits” received by the bank for a fixed period and withdrawable only after the expiry of the said fixed period and includes Reinvestment Deposits and Cash Certificates or other deposits of similar nature.
Question - Can NRO (Non Resident Ordinary Rupee) Account be held jointly? If yes, with whom?
The accounts may be held jointly with residents and / or with non-residents.
Question - In which form NRO Account can be open?
NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts.
Question - Is there general permission to a body corporate incorporated outside India to open a branch or liaison office in India?
No, there is no general permission for a body corporate incorporated outside India (including a firm or other association of individuals), desirous of opening a Liaison Office (LO) / Branch Office (BO) in India. It has to obtain permission from the Reserve Bank under provisions of FEMA 1999.
Question - Within how much period does an exporter have to export in case he has received advance payment from a buyer outside India?
The exporter has to ensure that the shipment of goods is made within one year from the date of receipt of advance payment.
Question - Is there general permission to person resident in India for purchase or acquisition of securities?
General permission has been granted to persons residents in India for purchase or acquisition of securities through normal banking channels.
Question - What is the time limit for settlement of import payment?
Remittances against imports should be completed within six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance, etc.
Question - Can a foreign national of non-Indian origin open bank account in India?
Yes, a foreign national of non Indian origin can open Non Resident Ordinary (Rupee) Account (NRO) in form of current or savings account with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.
Question - Can a NRIs/Person of Indian Origin acquire International Credit Card?
Yes, NRIs or person of Indian Origin can acquire International Credit Card from authorized dealer banks without prior approval of Reserve Bank.
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