Reserve Bank Regulations
¨Repatriation from India ¤No Limit on income repatriation¤Limit of USD 1 million on capital repatriation per financial year
¨Disclosure requirements in India ¤Appropriate filings with the tax authorities ¤Appropriate filings with the regulatory authorities ¤ ¨Other Considerations ¤Migration of the Indian trust ¤Concept of Protector ¤Trust Advisor/ Advisory Board ¤
¨¨Characterisation of the trust ¤When a trust has only NRI beneficiaries ¤When a trust has a mix of Indian and NRI Beneficiaries
¨Tax Implications ¤Treatment of income under the Indian Income Tax Act, 1961 ¤Applicability and benefit of tax treaties that can be availed ¤Estate Tax Implications for the NRIs
¨Restriction on Asset classes ¤Sectoral Caps applicable for certain industries viz: Insurance, Defence, etc. ¤NRIs are not permitted to purchase plantations and agricultural land
¨Repatriation from India ¤No Limit on income repatriation ¤Limit of USD 1 million on capital repatriation per financial year
¨Disclosure requirements in India ¤Appropriate filings with the tax authorities ¤Appropriate filings with the regulatory authorities ¤ ¨Other Considerations ¤Migration of the Indian trust ¤Concept of Protector ¤Trust Advisor/ Advisory Board ¤
¨Gradual relaxation in foreign exchange regulations with respect to remittances and repatriation of funds from India by residents as well as NRIs ¨Achievement of complete capital account convertibility ¨Prime Minister Manmohan Singh’s remarks at the World Economic Forum- “Our policy will be guided by the desire to make India even more attractive for Foreign Direct Investment.” ¨Economic Survey, 2009 has acknowledged the importance of foreign investment and is inclined to create a conducive environment by liberalising FDI norms in respect of services viz: Health Insurance, Higher Education, Trade in Services ¨Government released the first draft of the Foreign Direct Investment policy. The FDI policy is aimed at providing greater clarity in the foreign investment rules for foreign investors and stakeholders ¨Decision to do away with the Cabinet approvals for projects of and below INR 1200 crore is a major step forward in the liberalization and transparency of our FDI regime ¨ ¤
¨Disclosure requirements in India ¤Appropriate filings with the tax authorities ¤Appropriate filings with the regulatory authorities ¤ ¨Other Considerations ¤Migration of the Indian trust ¤Concept of Protector ¤Trust Advisor/ Advisory Board ¤
¨¨Characterisation of the trust ¤When a trust has only NRI beneficiaries ¤When a trust has a mix of Indian and NRI Beneficiaries
¨Tax Implications ¤Treatment of income under the Indian Income Tax Act, 1961 ¤Applicability and benefit of tax treaties that can be availed ¤Estate Tax Implications for the NRIs
¨Restriction on Asset classes ¤Sectoral Caps applicable for certain industries viz: Insurance, Defence, etc. ¤NRIs are not permitted to purchase plantations and agricultural land
¨Repatriation from India ¤No Limit on income repatriation ¤Limit of USD 1 million on capital repatriation per financial year
¨Disclosure requirements in India ¤Appropriate filings with the tax authorities ¤Appropriate filings with the regulatory authorities ¤ ¨Other Considerations ¤Migration of the Indian trust ¤Concept of Protector ¤Trust Advisor/ Advisory Board ¤
¨Gradual relaxation in foreign exchange regulations with respect to remittances and repatriation of funds from India by residents as well as NRIs ¨Achievement of complete capital account convertibility ¨Prime Minister Manmohan Singh’s remarks at the World Economic Forum- “Our policy will be guided by the desire to make India even more attractive for Foreign Direct Investment.” ¨Economic Survey, 2009 has acknowledged the importance of foreign investment and is inclined to create a conducive environment by liberalising FDI norms in respect of services viz: Health Insurance, Higher Education, Trade in Services ¨Government released the first draft of the Foreign Direct Investment policy. The FDI policy is aimed at providing greater clarity in the foreign investment rules for foreign investors and stakeholders ¨Decision to do away with the Cabinet approvals for projects of and below INR 1200 crore is a major step forward in the liberalization and transparency of our FDI regime ¨ ¤
