Who to speak to about buying a business in Rajasthan??

indiapassion

HI Twinkle...very curious how your trip went. Did you uncover answers to your questions? I also love Rajastan and hope to move there in a few years. I have no ambitions to own a business, but it sounds like your passion for the place equals mine. I hope that your trip went well...would love to hear of your adventures.

anjuli

I am also interested how it went!
Real estate prices in Udaipur are really high at the moment and it doesn't look as if they'd come down anytime soon!!
Buying a haveli in the old city will be awfully expensive and as it had been pointed out before, legally impossible. You need an Indian partner who will buy the property for you. And this is difficult! Finding somebody whom you can trust!

Possible is to take something on rent and run a business togather with some Indian partner (the risk of losing money is smaller).

pundabee

This is incorrect. A foreigner can, legally, set up an Indian company (or, more precisely, two foreigners since two people are needed to set up an Indian company). An Indian company can buy property.

anjuli

I said a foreigner cannot legally buy property in India, which is to my knowlege correct according to Rajasthan state laws.

Setting up a company might be possible, as far as I know an Indian partner is needed, in any case he is useful

Aishah

If you have a PIO or OCI card you can own property in your name if you are a foreigner - but otherwise it is illegal and you would have to have an Indian partner as you have stated, Anjuli.
A friend of mine set up a company but was not allowed to own or buy the property - the Indian partner had to do this (and again this is in Rajasthan). The friend could only manage to get a Tourist Visa.

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pundabee

I think things are being mixed up here. The rules are very clear: A foreigner can set up an Indian company under the Foreign Direct Investment Scheme. In order to do this a business visa is required. And a partner. The partner may be foreign or Indian, depending on the sector in which the company is operating.

An Indian company can buy property if this is stated as a right in its Memorandum of Association and Articles of Association and the type of business necessitates the acquisition of property (as it would be as described in the OP).

The problem is that officials in India, especially outside the main centres, often don't know the laws of India (and the possibility for foreigners to own Indian companies is a recent addition to the law, which doesn't help), and will advise any foreigner that an Indian partner is required.

Nick-H

OK, legal hair-splitting time ...

1. Some states have more restrictive rules than the national rules. These may even restrict Indian citizens from other states

2. A foreigner can certainly legally buy property in India, with certain restrictions, and if they do so in accordance with the stipulations of the Foreign Exchange Management Act (FEMA) 1999,

See the RBI FAQs here, especially the questions from 34 onwards.

3. It is practically impossible, as a visitor to India, to ever fulfil those requirements.

Corrected the link to point to the RBI FAQ page, not the Chennai Meetup thread

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Aishah

This link is taking us to Chennai Meet Up thread, Nick? I'm a little confused....

alabamagoa

Come on folks with whats going on here in Goa who in there right mind would want to buy anything, it seems ok at the time as i thought many years ago settle here in the sun, buy a place to hopefully save some money and have a little investment but now with the visa situation and the goverment laying down different rules to suit themseleves unfortunatley you and your property are no longer safe, and i have been informed today by the Debt management Dept that there are more people here that have brought illegally (through wrong advise by goverment advocates and builders) than there is ones that have brought legally, so many people will in fact lose theier properties if the goan goverment has there way.

upasna

Hi Twinkle ,

That's a very nice idea? well instead of discussing it here lets get in touch through the yahoo messenger and we can take further from there .

rgds
upasna


This post would normally have been deleted since the member's account has been closed. Not done since the next post refers to it.

kmalik

Thought I'd clarify that the qualification of residency is 182 or more consecutive days in India; otherwise ruled out by the 6 month maximum stay on the tourist visa.

Also, please be careful in screening who you consult (including the yahoo messenger offer earlier) - and ensure you have reputable legal advice from someone you select and one that does not have a financial interest in the transaction - except to safeguard your interest. Obvious stuff - but overlooked by too many!