Overseas Direct Investment - Liberalisation by RBI

RBI has liberalized rules for overseas Direct Investment by Indian Company. As on date if any Indian Company want to Invest abroad through Direct Investment Prior approval of RBI is required for opening Bank account abroad to hold / routed the Money . RBI has now allowed Indian Company to open Bank account abroad for the purpose of Direct Investment abroad without prior approval but subject to some condition. The Important condition is as follows:-

1.    Company must be eligible for FDI abroad

2.    Any credit to the account received abroad must be remitted to India within 30 days

3.    All debit / credit entry to be reported on yearly basis to AD certified by CPA

4.    The account must be closed within 30 days of end of JV / WOS