- Repatriation of investment capital and profits earned:
There are three basic points to note with respect to repatriation:
- All foreign investments are freely repatriable, subject to sectoral policies. Dividends declared on foreign investments can be remitted freely through an authorised dealer.
- Non-residents can sell shares on the stock exchange without prior approval of the Reserve Bank of India (RBI) and repatriate the sale proceeds through a bank, if they hold the shares on repatriation basis and if they have necessary NOC/tax clearance certificate issued by the Income Tax authorities.
- For sale of shares through private arrangements, regional offices of the RBI grant permission for recognized units of foreign equity in Indian company in terms of guidelines indicated in Regulation 10.B of Notification No. FEMA.20/2000 RB dated May 2000. The sale price of shares on recognized units is to be determined in accordance with the guidelines prescribed under Regulation 10.B (2) of the above Notification (www.rbi.org.in).
- Locational Restrictions: Industrial undertakings are free to select the location of their projects. Industrial License is required if the proposed location is within 25 km of the Standard Urban Area limits of 23 cities having population of 1 million as per 1991 census. (www.censusindia.net)
- Environmental Clearances: Entrepreneurs are required to obtain statutory clearances relating to pollution control and environment as necessary for setting up an industrial project for 31 categories of industries in terms of Notification S.O. 60 (E) dated 27.1.94 as amended from time to time, issued by the Ministry of Environment & Forests under The Environment (Protection) Act, 1986. Details can be obtained at the website of Ministry of Environment and Forests (http://envfor.nic.in).