Non resident Indians who have/ intend to have investments in India

For Non resident Indians who have/intend to have certain investments, property and bank accounts in India, we manage their financial affairs in India. We provide nri investment services, nri tax services, nri income tax services as follows:

  • Monitor, record and periodically report on his investments.
  • Facilitate liquidation/lease of property
  • Facilitate repatriation of sale proceeds of investment and property.
  • Facilitate repatriation of income from investments and rent from the property let out.
  • Facilitate acquisition/ lease of property through a top-notch property consultant Complete banking and other regulatory formalities.
  • Plan his financial transactions to minimize his tax liability in India.
  • File Income Tax return.

Banking Accounts

 

Particulars Foreign Currency Non-Resident Account (FCNR) Non-Resident External Rupee Account (NRE) Non-Resident Ordinary Account (NRO)
Who can open NRI NRI Any person resident outside India i.e. even a non-NRI.
Type of account Term deposit only Savings, Current, Recurring/ Term deposit Savings, Current, Recurring/ Term deposit
Period for deposits For terms not less than 1 year and more than 3 years i.e. 1-3 years only No restriction No restriction
Joint account In the name of two or more non-resident individuals In the name of two or more non-resident individuals May be held jointly with residents
Operation of account Besides account holder, Power of Attorney holder Besides account holder,Power of Attorney holder NRI and Resident Indian Account holder jointly or severally. Also Power of Attorney holder.
Nomination Permitted Permitted Permitted
Designated currency USD, Pound Sterling, Japanese Yen, Euro, DM, Australian Dollars, Canadian Dollars Indian Rupees Indian Rupees
Rate of interest Fixed or floating within the ceiling rate of LIBOR/ SWAP rates for the respective currency/corresponding term minus 25 basis points at present. Savings: Ceiling rate of six month USD LIBOR

Term Deposit: Ceiling rate of USD LIBOR of corresponding maturity

Current: No interest is paid
Savings: As applicable to domestic savings account 

Term Deposit: Banks are free to determine interest rates. 

Current: No interest is paid.
Taxation of interest Tax-free. Even on permanent return to India, tax-free till the time a person is “Not Ordinarily Resident” within the meaning of the Income Tax Act. Tax-free. If a NRI permanently returns to India, interest accrued w.e.f the date of permanent return to India is taxable. Taxable and Tax deducted at source at the applicable rate
Foreign Currency Risk Account Holder is protected against changes in INR value vis-à-vis the currency in which account is dominated Account holder is exposed to the fluctuations in the value of INR Account holder is exposed to the fluctuations in the value of INR
Repatriation Both principal and interest freely repatriable Both principal and interest freely repatriable Interest and other current income freely repatriable. Principal repatriable up to USD 1 million per calendar year.
Change in residential status Can be continued till due date on which option for conversion to Rupees/ RFC (See FAQs on Returning NRIs) account to be exercised Can be continued till maturity, but to be designated as resident account or converted to RFC Account to be designated as a Resident account

Non resident Indians who inherit assets in India

A NRI inherits assets in the form of investments, property etc in India and intends to either liquidate them and repatriate the sale proceeds of the same or manage the same in most tax efficient manner. We enable him to achieve these objectives by facilitating the clearance from Income Tax Department, RBI and other regulatory authorities.

Non resident Indians/ other Non-residents who have/ intend to set up a business in India

Please look into our entry strategy services.

A foreign investor planning to set up business in India can do so by the following ways:

1. As an Indian Company
A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through: -
2. As Foreign Company
A foreign company can commence operation in India through :
3. Foreign Technology Transfer / Collaboration Agreements / Royalty Payments

4. Foreign Direct Investment (FDI) Under Automatic Approval and Government Approval

5. Investments by NRIs / OCBs
NRIs / OCBs have been granted with the following facilities
  1. Maintenance of bank accounts in India and deposits with Indian firms / companies
  2. Investment in securities / shares in India
  3. Investment in immovable properties in India

 

Returning NRI 

NRI who return to India for good, should know various aspects of Foreign Exchange Regulations (FEMA), Indian Taxation and Banking Regulations in order to rearrange his financial affairs in India and outside India.

When relocating to India, the following aspects should be taken care of :

  • Monitor, record and periodically report on his investments.
  • Redesignation of all Indian bank accounts as Resident accounts.
  • Opening of and compliances in respect of 'Resident foreign currency' (RFC) account
  • Information to all companies, funds, etc., of whom shares and securities are held by the non-resident, regarding the change of residential status/relocation to India
  • Compliance in respect of the Indian Income-tax Act, 1961 e.g. application for PAN.
  • Compliances in respect of Wealth-tax Act, in case required e.g. filing of wealth-tax return
  • Miscellaneous other issues

Where can we help ?

  • Compliances regarding repatriation of assets to India
  • Procedure for redesignation of all Indian bank accounts
  • Opening of 'Resident foreign currency' (RFC) account
  • Information to all companies, funds, etc., of whom shares and securities are held by the non-resident, regarding the change of residential status/relocation to India
  • Compliance in respect of the Indian Income-tax Act, 1961 e.g. application for PAN in case you do not have a PAN
  • Compliances in respect of Wealth-tax Act, in case required e.g. filing of wealth-tax return
  • Repatriation of legacies/inherited assets and taxability in India thereon
  • Facilitate clearance required under FEMA from RBI to continue to hold assets outside India.
  • Facilitate re-investment of sale proceeds of assets acquired outside India.
  • Plan residential status under FEMA and Income-tax Act 1961.
  • Plan tax liability in India.
  • Make fresh investments in business outside India.
  • Investment and business consultancy in India.

Emigrating Indian/ New NRI

An emigrating Indian/ new NRI wants to retain/ disinvest assets (property, investments, business) acquired in India and repatriate the income/ sale proceeds thereof. We enable him to do so as follows:

  • Obtain clearance required under FEMA from RBI to continue to hold certain assets in India.
  • Facilitate repatriation of sale proceeds and income of assets held in India.
  • Plan his tax liability in India.
  • Monitor, record and report on his investments in India.