RBI may ease norms for registering of firms by non-residents

NEW DELHI: The Reserve Bank is in the process of finalising a draft notification for easing fund transfer norms for incorporation of companies in India by non-residents.

In reply to a question whether RBI proposes to ease fund transfer norms for incorporation of companies by non-residents, Minister of State for Finance Namo Narain Meena said, "Yes sir."

Meena said that generally non-residents are not well versed with the documentation/other requirement for registration of companies in India with Registrar of Companies and prefer appointing consultants who oversee the process of incorporation of companies and other formalities.

"Such a practice often leads to violations of provisions of Foreign Exchange Management Act (FEMA)," Meena said.

The matter was discussed and RBI is in the "process of finalising a draft notification" in consultation with the government for "facilitating" process of registration of companies by non-residents, he said.

"It will have a positive impact on the economic scenario," Meena added.