Emigrating Indians have to comply with the various
formalities while transferring their residence from India with the
intention to become NRI.Folloing information will be of help:
Bank Accounts
As all bank accounts have to be redesignated as
Non-Resident (Ordinary) Accounts, the emigrating Indians should
inform their bankers requesting them to convert their account into
NRO Account. No special form has been prescribed for this purpose. A
simple letter is enough. Once an account is designated as NRO
Account the operations in the account are permitted as per the terms
and conditions which have already been explained in the chapter on
'Bank Accounts' in this Book. However, the following points may also
be noted:-
(a)Express for travel within India is a permitted
debit. No RBI permission is required.
(b)Utilisation of funds in NRO Accounts for payment
of passage fares for NRI's own travel to and from India as well as
for similar travel of their wives, children and other dependents on
Indian carrier is freely allowed without RBI permission.
©If a person going abroad desires to maintain his
parents/relatives in India, the account can be opened jointly with
relatives concerned. Otherwise also he can have joint accounts with
residents in India. Such persons can also opt for conversion of a/c
to NRSR.
[Top]
Shares
The emigrating Indian, holding shares and
debentures of Indian companies at the time of becoming NRI, should
write to the company concerned to record the change of status as
'Non-Resident' in their registers. For this purpose, he should
furnish the following information to the company.
- Nationality.
- Date of leaving India
- Foreign address.
- Number of shares held and their face value
- Name and branch of the bank where the NRI's bank account is
maintained. It is also desirable to give bank account number.
In terms of RBI Notification No.122/92-RB dt.17th
September, 1992 companies have been granted general permission to
enter into their registers or books the overseas address of a holder
of any security, consequent to change of status of such holder from
resident to non-resident. The company has to obtain a
non-repatriation undertaking from the holder.
[Top]
Immovable Property
Emigrating Indians who, continue to be a citizen of
India need not take any permission for holding immovable property in
India. However, where the emigrating Indian has acquired foreign
citizenship, he would fall within the scope of section 31 of FERA
1973 and will be entitled for certain exemptions as explained in
Chapter 6 of this Book.
[Top]
Deposits with the Companies
In terms of section 9 of the Foreign Exchange
Regulation Act, 1973, no person can make any payment/credit to any
person residing out of India. This provision is subject to general
or special exemption given by the Reserve Bank of India. In view of
this, crediting any amount to an NRO account requires RBI
permission. The Reserve Bank of India, while revamping NRO account
scheme, vide their AD(MA) Circular NO.7 dt.30.3.93 has, inter alia,
permitted credit of legitimate dues in rupees to account holders in
India
[Top]
Units of U.T.I. and Government Bonds
No permission of the Reserve Bank of India is
required for holding units of U.T.I. and bonds of the Government.
[Top]
Gold & Jewellery
RBI permission is no more required for keeping
gold, jewellery and precious stones in India.
[Top]
Continuation as a Director
No permission is required by non-resident to
continue as a Director of an Indian company. By its Notification
No.FERA 128/93-RB dated 28th March, Indian company. By its
Notification No.FERA 128/93-RB dated 29th March, 1993, Reserve Bank
has granted general permission under Section 9(1)(a) of FERA 1973 to
companies in India for making payments in Indian rupees to their
non-resident (including foreign nationals) non-wholetime directors
while on a visit to India for the company's work such as attending
Board meeting etc., towards sitting fees, commission or remuneration
by way of monthly or quarterly or annual payment in accordance with
the provisions contained in the Company's Memorandum of association
or Articles of Association or in any agreement entered into by it or
in any resolution passed by the company in general meeting or by its
Board of Director. This general permission is, however, subject to
the condition that the company has obtained the necessary approval
from the Central Government under Section 309(4) or Section 310 of
the Companies Act, 1956 wherever it applies.
(a)The Indian company may import upto three
vehicles. Import of used cars is also permitted by the Indian
company provided these were registered in the same of the foreign
equity holding company/NRI equity holder abroad and in their
possession possession prior to import.
(b)The payment for the vehicle as well as the
payment of the customs duty in foreign exchange are made by the
foreign company/NRI holding equity in the Indian company.
©Subsequent import of a vehicle may be made after
the disposal of the previous vehicle in accordance with the
condition mentioned in para 'No Sale Condition' below, provided
there is a minimum period of five years between two successive
imports of a vehicle.
[Top]
Accredited journalists/correspondents of foreign news
agencies
(a)The importer should have the Accredition
Certificate from the Press Information Bureau, Ministry of
Information & Broadcasting, Government of India.
(b)Import of one vehicle is permitted.
©Subsequent import of a vehicle may be made after
the disposal of the previous vehicle in accordance with the
condition mentioned in para 'No Sale condition' below, provided
there is a minimum period of five years between two successive
imports of a vehicle.
[Top]
Indian firms executing contracts abroad
(a)Import of vehicles may be made after substantial
completion of the project/winding up of the foreign office, subject
to the production of a letter of approval from the Reserve Bank of
India showing the permission of the Reserve Bank of India for the
purchase of the vehicles abroad for the execution of the contract.
(b)The vehicle should have been in the use of the
firm/company abroad for atleast one year.
The condition regarding no sale/disposal as
stipulated in para 'No Sale Condition' below shall be applicable.
[Top]
Charitable and Missionary Institutions
(a)Import of vehicles such as utility vans,
ambulances, station wagons, jeeps, mini-buses (excluding passenger
cars) is permitted as gift, subject to the condition that the
importer is an established institution and is functioning for the
common benefit of the community, and subject further to production
of necessary clearance under the Foreign Contribution (Regulation)
Act, 1976.
(b)Payment of customs duty may be made in Indian
Rupees.
The condition regarding no sale/disposal as
stipulated in para 'No Sale Condition' below, shall be applicable.
[Top]
Honorary Consuls of Foreign Government
(a)Import of one passenger car is permitted on the
recommendation of the Ministry of External Affairs provided the cost
of the car including freight and insurance, is borne by the foreign
Government and the customs duty is paid by the applicant in Indian
Rupees at the time of import.
(b)Import of a second car will be permitted after a
period of five year from the date of importation of the first car
subject to the condition of re-export of the previous vehicle or its
sale to the State Trading Corporation of India or an eligible
importer covered by any one of the categories C.D.E. and F mentioned
above.
[Top]
