I am an OCI card holder and have a private limited company in the uk , could I buy a property in India in the name of the Uk private limited company , I am the sole director of the company there aren't any other employees or directors .
If this is allowed , can I pay directly from a uk bank account to the seller in Indian rupees
You will have to first take PAN in India for such private limited company and then you might be able to take such land.
However it is advisable to do the transaction in your individual name rather than company's name. As registering in company's name could lead to filing of its income tax return in India and other compliances.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
There are no restrictions on company buying the property. However, if its residential property, it is suggested that it should be in individual name unless the company has the business of renting of property.
A foreign company can not acquire immovable property in India unless it has a branch office or project office or other place of business for carrying any activity excluding a liaison office
An OCI may acquire immovable property in India other than agriculture land/farm house/plantation property
For detailed discussion you may opt for phone consultation
Hello,
As an OCI card holder, you have certain rights and restrictions when it comes to acquiring property in India. According to the guidelines, OCI card holders are allowed to acquire immovable property in India, except for agricultural land, farmhouses, and plantation properties.
In your case, since you have a private limited company in the UK and you are the sole director, it is technically possible for the company to purchase a property in India. In the case of purchasing a property in India, it is indeed advisable to consider the individual name for the transaction rather than the company's name. This can help avoid the additional compliance requirements and tax implications associated with owning the property through a company.
To proceed with purchasing a property in India through your UK private limited company, you will need to fulfill certain requirements. Firstly, your company will need to obtain a Permanent Account Number (PAN) in India. This PAN is required for any financial transactions and tax-related matters in India.
As an OCI card holder, you are allowed to make payments from your foreign bank account to the seller in Indian rupees for the purchase of property in India.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
Please note that as per RBI mandate real estate business falls under approval route i.e. you need to take permission from RBI to do any nature of real estate business in India including buying and selling of property or holding it as investment
If you are planning to lease out property purchased in Indi this transaction can be structure as holding / subsidiary company or a indian company having nominee shareholder / director locally
As an OCI (Overseas Citizen of India) card holder, you are eligible to buy property in India, subject to certain regulations and restrictions. However, there are specific guidelines regarding property ownership by foreign entities, including foreign companies.
According to the Reserve Bank of India (RBI) regulations, foreign companies, including private limited companies registered outside India, are generally not allowed to purchase immovable property in India. Only individuals and certain entities, such as foreign individuals of Indian origin and non-resident Indians (NRIs), are permitted to acquire property in India.
Therefore, as a sole director of a UK private limited company, it may not be possible for the company itself to directly purchase property in India. However, you can explore alternative options such as purchasing the property in your personal capacity as an OCI card holder.
It is crucial to consult with a legal professional or a qualified chartered accountant familiar with Indian property and foreign investment laws to obtain accurate and up-to-date advice based on your specific circumstances. They will be able to provide guidance on the most suitable approach for property acquisition in India while complying with relevant regulations.
