Union Budget 2023-24
Know More
Category
Download Expand All

  • Can a listed company be converted to LLP?

    No, only private / unlisted public company or a partnership firm can be converted into LLP.

    For more information, click here.

    Was this helpful?

  • What if there are more than seven subscribers to MoA and AoA?

    Incase of more than 7 subscribers INC 32 to be filled with MoA, AoA as attachment 
    For further details please access following link.

    Was this helpful?

  • In case of overseas shareholders and directors, are the documents required to be notarized and apostilled for incorporation of a company?

    Where the shareholder or a director to be appointed in the proposed company is a company incorporated outside India (for example, in China/ Chinese national residing in China), the MoA (Memorandum of Association), AoA (Articles of Association), proof of identity as well as address proof is required to be notarized before the Notary (Public) in China and the certificate of the Notary (Public) shall be attested by the Indian Embassy in China.

    Was this helpful?

  • How to inform RoC about change in membership of OPC?

    The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.

    For more information, click here.

    Was this helpful?

  • Do partnership agreements have to be registered under LLP?

    Yes, it is mandatory to execute and file partnership agreement in view of Sections 2(0) & (q), 22 and 23 of the LLP Act.
    As per provisions of the Act, in the absence of agreement, the mutual rights and liabilities shall be as provided for under Schedule-I to the Act. Therefore, in case any LLP proposes to exclude provisions or requirements of Schedule-I, it would have to enter into an agreement, specifically excluding applicability of any or all paragraphs of the Schedule.

    For more information, click here.

    Was this helpful?

  • What are the Important clauses included in a Joint venture Agreement?

    Some of the important clauses in a Joint Venture Agreement are as below:
    a) Object and scope;
    b) Equity Participation by local and foreign investors;
    c) Lock in Clause;
    d) Financial Arrangements;
    e) Composition of Board and Management arrangements;
    f) Remedying a deadlock;
    g) Roles & Responsibilities of the Parties;
    h) Exit Clause;
    i) Representations, Warranties & Covenants of the Parties;
    j) Confidentiality;
    k) Dispute Resolution;
     

    Was this helpful?

  • Is there any cooling period for the existing auditors after the expiry of their term?

    An individual auditor who has completed his term of five years shall not be eligible for re-appointment as auditor in the company for five years from the completion term of five years.

    An auditor firm who has completed their two terms of five years shall not be eligible for re-appointment as auditor in the company for next five years from the completion of 10 year.

    Was this helpful?

  • Is it mandatory to use eMoA and eAoA? Can physical copies of MoA/AoA be signed and attached with SPICe forms?

    Yes. It is mandatory to use eMoA (INC-33) and eAoA (INC-34) . Physical copies of MoA/AoA be signed and attached only in case of foreign subscriber.
    For further details please access following link.

    Was this helpful?

  • Is there any endorsed fee(s) that can be charged from the Start-ups for furnishing them with a suggestion/bolster/underwriting letter?

    Yes. A maximum fee of INR 5,000 can be charged by the incubators for issuing a letter of recommendation to Start-ups. In cases where an incubator is required to form a panel of external experts to assess the innovativeness of the product/service/process, a maximum fee of Rs. 10,000 can be charged by the incubators.

    For more information, click here.

    Was this helpful?

  • On approval of SPICe how PAN & TAN is communicated to the user?

    On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user. Further PAN card shall be issued by the Income Tax Department.

    For more information, click here.

    Was this helpful?

Category
Download Expand All

  • Whether the IDRs required to be listed in any stock exchanges of India?

    Yes, The IDRs are required to be listed in at least one stock exchange in India having nationwide terminals.

    For more information, click here

    Was this helpful?

  • Which are the permissible ways in which an FVCI can make the investment?

    The FVCI is permitted to:

    a) Purchase the securities/ instruments (permitted for FVCI) either from the issuer of these securities/ instruments or from any person holding these securities/ instruments.

    b) Invest in securities on a recognized stock exchange subject to the provisions of the SEBI (FVCI) Regulations, 2000, as amended from time to time.

    c) Acquire, by purchase or otherwise, from, or transfer, by sale or otherwise, to, any person resident in or outside India, any security/ instrument it is allowed to invest in, at a price that is mutually acceptable to the buyer and the seller/ issuer.

    d) Receive the proceeds of the liquidation of VCFs or of Cat-I AIFs or of schemes/ funds set up by the VCFs or Cat-I AIFs.

    Was this helpful?

  • What is the FDI policy for Single Brand Retail Trading sector?

    Up to 100% FDI is permitted for Single Brand Retail Trading (SBRT) sector without any government route subject to the following conditions:

    • Products should be of single brand only
    • Sold under same brand internationally
    • Covers products which are branded during manufacturing
    • DIPP approval is needed for any addition to product category
    • Entities involving FDI beyond 51% in the SBRT are required to source at least 30% of the value of goods purchased by them from India

    For more information, click here. 

    Was this helpful?

  • 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.

    Was this helpful?

  • 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

    Was this helpful?

  • 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

    Was this helpful?

  • 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

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

    Was this helpful?

  • 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.

    Was this helpful?