For Demat of Shares of private limited (which is not traded on stock exchange) please advise we need PIS or NonPIS Account?
Investment in the unlisted private limited companies in India by an NRI comes under Foreign Direct Investment (FDI). Therefore, there’s no need for a PIS Account as it is required for investments in the secondary market. You can use your NRE or NRO Account for such investments.
NRIs can invest in unlisted companies either by becoming a promoter director of a new venture in India or by buying stake in a private limited company or even through placements in public limited companies that are not yet listed.
Non-resident Indian (NRI) investments into private limited companies are governed by the Foreign Exchange Management Act (FEMA) Rules 1999.
Like any resident Indian floating a private company, NRIs also have to acquire DIN or DSC, get approval for name reservation, get approvals for MOA and AOA, and get an incorporation certificate, obtain PAN, TAN, and GST registrations.
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