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Understand Acquiring Immovable Property

Under the Foreign Exchange Management Act (FEMA) in India, non-residents or foreign entities can acquire and transfer immovable property under certain conditions and guidelines. FEMA regulates the acquisition and transfer of immovable property to ensure compliance with the laws and regulations in India. Non-residents or foreign entities can acquire only residential or commercial property in India, and the payment for the property must be made through normal banking channels. Non-residents or foreign entities are also allowed to repatriate the sale proceeds of the property, subject to certain conditions such as the payment of taxes and submission of the necessary documentation.

MMA can provide comprehensive support in acquiring immovable property under FEMA by offering legal expertise, assisting with documentation, liaising with the RBI for necessary approvals, ensuring compliance with tax laws, and facilitating the repatriation of sale proceeds. Our guidance can help streamline the acquisition process and ensure compliance with regulations.

"Streamlining the Process: MMA's Comprehensive Services for Acquiring Immovable Property Under FEMA"

Eligibility Check

Non-residents or foreign entities need to verify their eligibility to acquire immovable property in India under FEMA regulations. MMA can help in determining whether the client meets the eligibility criteria.

Legal Guidance

MMA can provide legal guidance on the documentation required for acquiring immovable property under FEMA, such as obtaining a no-objection certificate (NOC) from the Reserve Bank of India (RBI), and ensuring compliance with the tax laws in India.

RBI Approval

MMA can help in obtaining necessary approvals from the RBI for acquiring immovable property, such as obtaining a NOC, and ensure compliance with FEMA regulations.

Payment

MMA can assist in facilitating the payment for the property through normal banking channels in foreign currency, ensuring compliance with FEMA regulations.

Documentation

MMA can assist in preparing and verifying the necessary documentation, such as the sale deed, title deed, and registration certificate.

Repatriation of Sale Proceeds

MMA can assist in facilitating the repatriation of sale proceeds of the property, subject to compliance with FEMA regulations, such as payment of taxes and submission of necessary documentation.

Property in India? Understanding the FEMA Regulations"

Here are the eligibility criteria for acquiring immovable property under FEMA regulations in India:

Non-Resident Indians (NRIs) can acquire any immovable property in India except agricultural land, plantation property, or farmhouse.
Foreign Nationals and foreign entities can acquire immovable property in India, subject to the approval of the Reserve Bank of India (RBI).
Foreign Nationals and foreign entities can acquire only residential or commercial properties in India.
The payment for the property must be made through normal banking channels in foreign currency or Indian rupees from funds held in a non-resident account.
The property must be purchased in compliance with the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018 (FEMA Regulations).
The property must be registered with the Indian authorities within 90 days of the purchase.
The property must be used for personal or commercial purposes, and the sale proceeds must be repatriated to the foreign country through the normal banking channels subject to certain conditions.

It is important to note that the eligibility criteria may vary based on the type of property and other factors. It is advisable to seek professional guidance from a legal expert such as MMA to ensure compliance with FEMA regulations.

Common Issues Faced while Acquiring Immovable Property

Common issues faced while acquiring immovable property under FEMA and the solutions with respect to how MMA can help are:

Non-compliance with FEMA regulations:

One of the most common issues faced by individuals or foreign entities while acquiring immovable property in India is non-compliance with FEMA regulations.

MMA can help in ensuring compliance with the regulations by providing expert advice and guidance throughout the process.

Approval from RBI:

Foreign nationals and foreign entities require the approval of the Reserve Bank of India (RBI) to acquire immovable property in India.

MMA can assist in obtaining the necessary approvals from the RBI.

Verification of Title:

The verification of title is a crucial aspect of acquiring immovable property in India.

MMA can help in conducting due diligence and verifying the title to ensure that the property is free from any encumbrances.

Documentation:

The documentation process for acquiring immovable property in India can be complex and time-consuming.

MMA can assist in the preparation and review of all the necessary documentation to ensure that the process is smooth and hassle-free.

Repatriation of funds:

Repatriation of funds from the sale of immovable property in India can be a complicated process.

MMA can provide expert guidance on the repatriation of funds in compliance with FEMA regulations.

In summary, MMA can provide comprehensive assistance and guidance throughout the process of acquiring immovable property under FEMA regulations in India. Our expertise and experience can help individuals and foreign entities navigate the legal landscape and ensure compliance with all regulations to make the process of acquiring immovable property in India seamless and hassle-free.

MMA Approach

Expertise:

MMA has a team of experts with extensive knowledge and experience in FEMA regulations and the legal landscape of acquiring immovable property in India.
They can provide comprehensive guidance and assistance throughout the process.

Compliance:

MMA can ensure compliance with all relevant regulations and laws while acquiring immovable property in India.
They can help foreign nationals and foreign entities navigate the complex legal landscape and ensure compliance with FEMA regulations.

Efficiency:

The process of acquiring immovable property in India can be time-consuming and complex.
MMA can help streamline the process, saving time and effort for their clients.

Customized Solutions:

MMA provides customized solutions tailored to the unique needs of each client.
They can assist with a range of services, including due diligence, title verification, documentation, and repatriation of funds.

Reputation:

MMA has a strong reputation in the legal and financial sectors in India.
They are known for their professionalism, integrity, and commitment to their clients.

In summary, MMA's expertise, compliance with regulations, efficiency, customized solutions, and reputation in the industry make them an ideal choice for acquiring immovable property under FEMA services in India.

Kpis To Measure The Service Quality

Costs

Actual vs. budget costs.
Budget needed for completion vs. budget remaining

Team Productivity

Lead time and Cycle time.
Team Velocity
Deployment frequency
Time spent vs. time planned (for iteracions or implementation of partic features)

Customer Involvement

Time spent by a customer's employees fulfiling a vendor's requests
Time of delays with requirements elicitation sessions on the customer’s side

User Satisfaction

Overall customer satisfaction score
The team's proactivity (problem-solving Skills, ability to give advice)
The team's reliability (fulfilment of promises)
The team's responsiveness (including availability)

How to reach MMA for Acquiring Immovable Property Services

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MMA Acquiring Immovable Property Services - Q&A

What are the different modes of acquiring immovable property in India under FEMA regulations?

A: The different modes of acquiring immovable property in India under FEMA regulations include purchase, gift, inheritance, lease, and mortgage.
Q: Can non-residents acquire agricultural land in India under FEMA regulations?

A: No, non-residents are not permitted to acquire agricultural land in India under FEMA regulations.
Q: What are the restrictions on the number of properties that can be acquired by non-residents under FEMA regulations?

A: There are no restrictions on the number of properties that can be acquired by non-residents under FEMA regulations.
Q: Is it mandatory to obtain approval from the Reserve Bank of India (RBI) for acquiring immovable property in India under FEMA regulations?

A: Approval from the RBI is required only in certain cases, such as for the acquisition of agricultural land or for the acquisition of properties by entities incorporated outside India.
Q: Can the purchase consideration for the immovable property be paid in foreign currency?

A: No, the purchase consideration for the immovable property must be paid in Indian rupees.
Q: Can the repatriation of funds from the sale of immovable property be done immediately under FEMA regulations?

A: No, there are certain restrictions on the repatriation of funds from the sale of immovable property, such as the requirement to hold the property for at least three years.
Q: What are the tax implications of acquiring immovable property in India under FEMA regulations?

A: Non-residents are subject to tax in India on their Indian-sourced income, including rental income from immovable property.
Q: Can non-residents take a home loan to acquire immovable property in India under FEMA regulations?

A: Yes, non-residents can take a home loan to acquire immovable property in India under FEMA regulations.
Q: Is title verification mandatory before acquiring immovable property in India under FEMA regulations?

A: Yes, title verification is mandatory before acquiring immovable property in India under FEMA regulations.
Q: How long does it take to complete the acquisition process for immovable property under FEMA regulations?

A: The time taken to complete the acquisition process for immovable property under FEMA regulations depends on various factors, such as the mode of acquisition, the location of the property, and the documentation required.
Q: Can MMA assist with due diligence and title verification before acquiring immovable property under FEMA regulations?

A: Yes, MMA can assist with due diligence and title verification before acquiring immovable property under FEMA regulations.
Q: Can MMA assist with the documentation required for acquiring immovable property under FEMA regulations?

A: Yes, MMA can assist with the documentation required for acquiring immovable property under FEMA regulations.
Q: Can MMA assist with the repatriation of funds from the sale of immovable property under FEMA regulations?

A: Yes, MMA can assist with the repatriation of funds from the sale of immovable property under FEMA regulations.