(i) Foreign companies, i.e., companies (other than banking companies) which are not incorporated in India and foreign nationals (whether resident in India or not) are subjected to special regulations relating to their business etc. activities in India through the provisions of Sections 28, 29 and 30 of FERA 1973. Acquisition/disposal of immovable properties in India by foreign companies/foreign nationals is also subject to regulation under Section 31 of FERA 1973. Until 1992, Indian companies, (other than banking companies) in which non-resident interest exceeded forty per cent i.e. FERA companies, were also subjected to these regulations. However since January 1993 i.e. after the amendment to FERA 1973, FERA companies are treated on par with other Indian companies except in regard to carrying on agricultural or plantation activities in India. Regulations relating to these restrictions as also other matters connected with remittance of profits by foreign companies, remittance facilities to foreign nationals etc. are given in this Chapter.

(ii) For the purposes of Sections 28 and 29 of FERA 1973, as defined in the Explanation thereto, the term Company includes a firm or other association of individuals. Accordingly, the term foreign company used in this Chapter connotes also firms and other institutions which are registered or incorporated outside India. Likewise, the term FERA company connotes Indian firms and institutions in which non-resident interest exceeds forty per cent. The term Non-resident interest has been defined in the Explanation (ii) to Section 29, to mean participation in the share capital by, or entitlement to the distributable profits of, any individual or company resident outside India, or any company not incorporated under any law in force in India or any branch of such company whether resident outside India or