Union Budget 2023-24
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  • What is the time limit for filing form INC-6?

    Form INC-6 shall be filed within 30 days in case of voluntary conversion (if any One Person Company wants to convert itself into private/public company then also it can voluntarily apply through Form INC-6 after two years of its incorporation) and within six months of mandatory conversion (In case paid up share capital of an One Person Company exceeds fifty lakh rupees or its average annual turnover).
    For further details please access following link.

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  • Can more than one Liaison Office be set up?

    Yes. Requests for establishing additional Liaison Offices may be submitted through fresh FNC form duly signed by the authorized signatory of the foreign entity in the home country to the Reserve Bank of India.

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  • How long will the directors be liable for the offences occurred during his tenure?

    A director shall be liable for the offences / non-compliances occurred during his tenure even after his resignation and disassociation with the company.

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  • What are the exceptional scenarios in which pdf attachments (MOA, AOA) should be used instead of eMoA, eAoA with SPICe (INC-32)?

    When the applicant is :
    1. Non-Individual first subscriber based outside India
    2. Non-Individual first subscriber based in India
    3. Indian National being Subscriber other than director
    4. Indian National being Subscriber-cum-Director
    5. Foreign National being Subscriber other than director having valid DIN
    6. Foreign National being Subscriber-cum-Director having valid DIN
    7. Foreign National being Subscriber-cum-Director not having valid DIN
    For further details please access following link.

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  • Whether a LO, BO and PO (Liaison, Branch or Project) can acquire property for its operations?

     

    • The BO / PO of a foreign entity, excluding an LO, shall be permitted to acquire property for their own use and to carry out permitted/incidental activities except for leasing or renting out the property. Please note that entities from China, Hong Kong and Macau shall require prior approval of the RBI to acquire immovable property in India for a BO/PO
    • BOs/LOs/POs shall have general permission to carry out permitted/ incidental activities from leased property subject to lease period not exceeding five years

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  • Which authority allots the Director Identification Number (DIN)?

    Any person intending to become a director in an existing company shall file Form DIR-3 and the same gets processed by the Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs). Further, the person who is appointed as a director upon filing Form SPICe INC-32 (which is a Simplified Proforma for Incorporating Company Electronically) will be issued a unquie 8-digit DIN by the approving authority (Central Registration Centre).

    For more information, click here.

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  • Whether all the directors, manager and secretary of the Company are required to register their DSC on the MCA portal?

    No, only those persons who will be signing the e-Forms on behalf of the Company are required to register their DSC on the MCA portal.
    For further details please access following link.

     

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  • Is it mandatory for the name of the company to be indicative of the nature of its business?

    No, it is not mandatory for the name to be indicative of the nature of its business.

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  • What should be the quorum for board meetings?

    Quorum for the board meeting for an Indian subsidiary is two directors. In case of physical board meeting, two directors should be present in person.

    Board meeting may also be held through an audio-visual means (for example, video conference) subject to compliance with conditions such as recording of the meeting, roll call, minutes of the meeting capturing the VC details, etc.  There are restrictions with respect to matters which can be approved in a meeting held through this mode.

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  • What are the activities that are permitted to be undertaken by Project Office?

    The list for PO as follows:

    • Non-resident companies are generally permitted to establish POs in India, provided they have secured a contract from an Indian company to execute a project in India
    • Further, the project must have secured the necessary regulatory clearances and is funded directly by inward remittance from abroad or the project is funded by a bilateral or multilateral international financing agency, or a company or entity in India awarding the contract has been granted term loan by a public financial institution or a bank in India for the project

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  • How can foreign investors put money in Portfolio Investments in India?

    Investment by FPI registered in accordance with SEBI guidelines including deemed RFPI (erstwhile FII) is permitted in the capital of an Indian Company under the Portfolio Investment Scheme. Investment by individual FPIs should be less than 10% of the paid-up capital of the Indian Company on a fully diluted basis. The aggregate investment by FPIs should not exceed 24% of the paid-up capital of an Indian Company on a fully diluted basis. This aggregate limit of 24% can be increased by the Indian Company concerned up to the sectoral cap/ statutory ceiling, as applicable, with the approval of its Board of Directors and its General Body through a resolution and a special resolution, respectively and subject to prior intimation to RBI. The aggregate FII/FPI investment, individually or in conjunction with other kinds of foreign investment, cannot exceed sectoral/statutory cap.

    For more information, click here.

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  • What are the pricing guidelines to be complied with given the scenario of Issue of shares by Indian investee company to a person resident outside India?

    Listed Securities: Price to be not less than the price worked out as per SEBI guidelines

    Unlisted Securities: Price not less than the price worked out as per internationally accepted pricing methodology on arm’s length basis

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  • Whether IDRs can be converted/ redeemed into underlying equity shares?

    IDRs can be converted/ redeemed into the underlying equity shares only after the expiry of one year from the date of the listing of the IDRs, subject to the compliance of the related provisions of Foreign Exchange Management Act and Regulations issued thereunder by RBI & SEBI in this regard.

    For more information, click here

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  • Can FDI be made in investment vehicles?

    Any person resident outside India may invest in units of Investment Vehicles subject to the conditions laid down in Schedule 8 to Notification No FEMA 20.
     A person resident outside India who has acquired or purchased units of an investment vehicle may sell or transfer in any manner or redeem the units as per regulations framed by SEBI or directions issued by the Reserve Bank.

    For more information, click here

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  • Which are the major FDI attractive sub-sectors in India?

    Textiles (including Dyed, Printed) sector attracted $ 3.19 Bn FDI during April 2000-June 2019.

    For more information, click here.

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  • What are the regulations for a foreign company to set up business operations in India?

    A foreign company can set up business in India via Foreign Direct Investment (FDI) either by incorporating an Indian company or foreign company or LLP under the Companies Act, 2013 or by setting up a Liaison Office, Project Office or a Branch Office of the foreign company. Entry into India is however as per the provision of FDI policy and FEMA rules.

    For more information, click here.

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  • Is it permissible for Start-ups to secure foreign funding?

    RBI via the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (FEMA 20) has allowed startups to issue convertible notes to foreign investors apart from FDI in startups by foreign venture capital investors through subscribing to equity or equity-linked instruments or debt instruments.

    For more information, click here.

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  • What are the exit options available for an investor in IDR?

    The Investor may trade the IDRs in India or can request for redemption of the IDRs to the issuer company.

    For more information, click here

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  • What are investment vehicles?

    Investment Vehicle is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose. For the purpose of Schedule 8 of FEMA 20(R), an Investment Vehicle is a Real Estate Investment Trust (REIT) governed by the SEBI (REITs) Regulations, 2014, an Infrastructure Investment Trust (InvIt) governed by the SEBI (InvIts) Regulations, 2014 and an Alternative Investment Fund (AIF) governed by the SEBI (AIFs) Regulations, 2012. It does not include a Venture Capital Fund registered under the erstwhile SEBI (Venture Capital Funds) Regulations, 1996.

    For more information, click here.

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  • How much FDI did the automobile and auto-components sub-sectors attract?

    Automobile and auto-components industry attracted $22.3 bn FDI inflows during April 2000 - June 2019. It contributes almost 5% of the total FDI inflows in India.

    For more information, click here.

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