Indian Companies Investing Abroad Must Report Under FEMA 1999 via FLA for Joint Ventures and Subsidiaries
Direct investment abroad by Indian companies involves investing in equity or participating preference shares of overseas companies under the Overseas Direct Investment Scheme. This includes investments in joint ventures or wholly-owned subsidiaries abroad. This investment is categorized under the Foreign Exchange Management Act (FEMA) 1999, and companies must report these investments in the Annual Return on Foreign Liabilities and Assets (FLA).
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