• 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.

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

    Was this helpful?

  • 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

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

     

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

    Was this helpful?

  • 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

    Was this helpful?

  • What are the permitted activities if I want to set up a Branch office in India?

    Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:

    i. Export / Import of goods

    ii. Rendering professional or consultancy services

    iii. Carrying out research work, in areas in which the parent company is engaged

    iv. Promoting technical or financial collaborations between Indian companies and parent or overseas group company

    v. Representing the parent company in India and acting as buying / selling agent in India

    vi. Rendering services in information technology and development of software in India

    vii. Rendering technical support to the products supplied by parent/group companies

    viii. Foreign airline / shipping company.

    Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes.

    For more information, click here

    Was this helpful?

  • How is IDR holder informed about the duration of fungibility window?

    IDR holders can look for such announcements made by the company in leading English and Hindi national daily newspapers with wide circulation as well as the websites of the stock exchanges.

    For more information, click here

    Was this helpful?

  • What is to be done after the investment is made under the Automatic Route or with Government approval?

    On receipt of the foreign direct investment (FDI), the Indian company receiving the investment for issuing shares/ debentures should report the details to the Regional Office concerned of the Reserve Bank of India (RBI) within 30 days from the date of receipt in the Advance Reporting Form in Section 1, Annexure 6

    Steps for reporting of investment varies for shares, depository receipts and other instruments.

    To know more about the detailed process of reporting, refer to section 2, Annexure 6 of the Consolidated FDI Policy, 2017.

    For more information, click here

    Was this helpful?

  • How is India-Bangladesh trade relationship?

    India and Bangladesh signed their first trade agreement in 1972 and have engaged in multiple trade arrangements whenever the two countries recognise any opportunity in terms of comparative advantage. India has 'revealed comparative advantages' in many products that Bangladesh needs. Bangladesh has been provided duty free quota free access by India on all tariff lines except tobacco and alcohol under SAFTA. India’s exports to Bangladesh for the year 2017-18 (April to March) stood at US $ 8.46 billion and imports from Bangladesh during the financial year 2017-18 stood at US $ 0.68 billion.

     

    Was this helpful?

  • What are the legislatures governing IDRs?

    Central Government notified the Companies (Issue of Indian Depository Receipts) Rules, 2004 (IDR Rules) pursuant to the section 605 A of the Companies Act. SEBI issued guidelines for disclosure with respect to IDRs and notified the model listing agreement to be entered between Stock Exchange and the foreign issuer specifying continuous listing requirements.

    For more information, click here.

    Was this helpful?

  • How to commence business in India?

    A foreign investor can commence business in India as:

    1. Indian Company
    2. Foreign Company
    3. Limited Liability Partnership

    For more information, click here

    Was this helpful?

  • What are the requirements for investing in IDRs?

    Following are some of the requirements for investing in IDRs:

    • IDRs can be purchased by any person who is resident in India as defined under FEMA
    • Minimum application amount in an IDR issue shall be INR. 20,000
    • Investments by Indian companies in IDRs shall not exceed the investment limits, if any, prescribed for them under applicable laws
    • In every issue of IDR -
      • At least 50% of the IDRs issued shall be subscribed to by QIBs;
      • The balance 50% shall be available for subscription by no institutional and retail

    For more information, click here

    Was this helpful?

  • What are the guidelines for the issue price of shares against FDI received for a company listed in India?

    The price of shares issued to persons residing outside India under the FDI Policy, should not be less than the price worked out with the Securities and Exchange Board of India (SEBI) when shares are listed on a recognized stock exchange in India.

    For more information, click here

    Was this helpful?

  • What is the highlight of India-Bangladesh bilateral relationship?

    India was the first country to recognize Bangladesh as a separate and independent state and, shortly after its independence in December 1971, established diplomatic relations with the country. Bangladesh is the one of the main development partners of India today. India has extended three Lines of Credits to the said nation in the last 8 years of worth US$ 8 billion.

    Was this helpful?

  • Who are eligible to issue IDRs?

    The eligibility criteria given under IDR rules and guidelines as mentioned under:

    The foreign issuing company shall have the following:

    • pre‐issue paid‐up capital and free reserves of at least $ 50 M and have a minimum average market capitalization (during the last 3 years) in its home country of at least $ 100 M
    • a continuous trading record or history on a stock exchange in its home country for at least three immediately preceding years
    • a track record of distributable profits for at least three out of immediately preceding five years
    • listed in its home country and not been prohibited to issue securities by any Regulatory Body and has a good track record with respect to compliance with securities market regulations in its home country

    Note: The size of an IDR issue shall not be less than INR. 50 Cr

    For more information, click here.

    Was this helpful?