Investment & Other Facilities for Non-Resident Indians

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General Information

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• Who is a Non-Resident Indian (NRI) ?

• Who is a person of Indian Origin ?

• What is an OCB ?

• Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs ?

• What are the various facilities available to NRIs/OCBs ?

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Facilities for NRIs

Question-1: Who is a Non-Resident Indian (NRI) ?

Answer:

An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organisations and officials deputed abroad by Central/State Government and Public Sector Undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs).

Question-2: Who is a person of Indian Origin ?

Answer:

A) For the purpose of availing of the facility of opening and maintenance of bank accounts and investment in shares/securities in India.

A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if:
1. he, at any time, held an Indian Passport,
   or
   
2. he or either of his parents or any of his grand parents was citizen of India by virtue of the Constitutiion of India or Citizenship Act,1955(57 of 1955).

Note: A spouse (not being a citizen of Pakistan or Bangladesh) of a person of Indian origin is also treated as a person of Indian origin for the above purposes.

B) For Investment in Immovable Property

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal), is deemed to be of Indian origin if,
1. he held an Indian Passport at any time, or
   
2. he or his father or paternal grand-father was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Question-3: What is an OCB ?

Answer:

Overseas Corporate Bodies predominantly owned by individuals of Indian nationality or origin resident outside India (OCBs) include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be at or above the level of 60%.

Question-4: Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs ?

Answer:

Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned corporate body/trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs, and in form OAC1 where it is held indirectly by NRIs.

Question-5: What are the various facilities available to NRIs/OCBs ?

Answer:

NRIs/OCBs are granted the following facilities:

1. Maintenance of bank accounts in India.

2. Investment in securities/shares and deposits of Indian firms/ companies.

3. Investment in immovable property in India.

INDOlink

Consulate Home-Page

Facilities for NRIs

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