• How many names can be applied for in SPICe (INC-32)?

    Only one name can be applied.

    For more information, click here.

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  • Is Unique Identification Number (UIN) obtained by Project office (PO)?

    No, Authorised Dealer Bank (AD Bank) need not obtain UIN from Reserve Bank of India (RBI) for PO.
     

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  • What is the duration for preserving the books of account?

    The books of account shall be preserved by the company for eight financial years preceding the financial year. However, there are certain registers and documents which are required to be kept permanently.

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  • What is a NIDHI company?

    A NIDHI Company is notified under section 620-A of the Companies Act and is classified as "Mutual Benefit Financial Company" by the RBI. Essentially, a Nidhi Company differs from a regular finance investment company or a Non-Banking Finance company (NBFC), as it deals only with its shareholders or members, for mutual benefits of its members. A Nidhi Company accept deposits only its members and lends funds only to them on demand. A Nidhi Company is not entitled to carry out business/activities related with hire purchase financing, leasing finance, chit funds, acquisition of securities issued by any corporate body, etc. or issue any debt instruments (such as preference share, debentures, etc.) in any form.

    For more information, click here.

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  • Can I attach MOA and AOA for few subscribers and form INC-33(eMOA) and INC-34(eAOA) for other subscribers for same company?

    No. In case the proposed company is required to file MOA and AOA due to any of the above mentioned conditions, then SPICe (INC-32)shall be filed ONLY with MOA and AOA. In such cases, the proposed company is NOT required to file the eMOA and eAOA under any circumstances.
    For further details please access following link.

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  • With respect to the compliances to be undertaken by (Project Office) PO viz. maintaining of bank account at entity level, filing of AACs, complying with submission of closure documentations on completion of the project and maintaining of books of accounts, can the same be undertaken at entity level instead of at specific project level?

    With respect the aforesaid compliances, the same will have to be undertaken at specific project level and not at the entity level.

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  • Do all board members have to get their Digital Signature Certificates registered on the 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 more information, click here.

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  • How will foreign directors on Indian companies register their DSC on the MCA portal?

    Foreign directors are required to obtain Digital Signature Certificate from an Indian Certifying Authority (List of Certifying Authorities is available on the MCA portal). The process of registration of DSC is same as applicable to others.
    For further details please access following link.

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  • Is it allowed to use words “India” “Global” “International” in the name of an Indian entity?

    “India” can be used by foreign company which is incorporating its subsidiary company in India. The original name of the holding company as it is may be allowed with the addition of word “India” or name of any Indian state or city, if otherwise available.
    The words “Global” “International” can be used in the name of an Indian company.
     

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  • What is an Annual General Meeting (AGM)? When should a company convene its first AGM?

    Every company shall in each year hold in addition to any other meetings, a general meeting of its shareholders as its annual general meeting for adoption of audited financial statements, declaration of final dividend, etc

    The first AGM of a company should be held within a period nine-month from the date of close of first financial year.

    In any other case, within a period of six months from the date of closing of the financial year.

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  • What are the possible sectors where FVCI can invest?

    An FVCI can invest in an Indian company engaged in Biotechnology, IT related to hardware and software development, Nanotechnology, Seed research and development, Research and development of new chemical entities in pharmaceutical sector, Dairy industry, Poultry industry, Production of bio-fuels, Hotel-cum-convention centres with seating capacity of more than three thousand and Infrastructure sector.

    For more information, click here.

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  • What is Foreign Portfolio Investment?

    Foreign Portfolio Investment (FPI) is an investment by a foreign investor in a group of assets such as stocks, bonds, cash equivalents.

    For more information, click here.

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  • What is the institutional framework governing FDI in India?

    FDI in India is regulated under Schedule 1 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (Original notification is available at link; subsequent amendment notifications are available at link2.

    Besides FEMA, 1999, FDI is also subject to other regulations as per Reserve Bank of India (RBI) and DPIIT. DPIIT is the nodal agency entrusted to formulate FDI Policy. It issues press notes to make amendments in the existing policy and also issues consolidated FDI Policy on an annual basis.

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  • What are the limits of FII/FPIs Investment in securities in India?

    Foreign Institutional Investor (FII) and Foreign Portfolio Investors (FPI) may in terms of Schedule 2 and 2A of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations, as the case may be, respectively, invest in the capital of an Indian company under the Portfolio Investment Scheme which limits the individual holding of an FII/FPI below 10% of the capital of the company and the aggregate limit for FII/FPI investment to 24% of the capital of the company. This aggregate limit of 24% can be increased to the sectoral cap/statutory ceiling, as applicable, by the Indian company concerned through a resolution by its Board of Directors followed by a special resolution to that effect by its General Body and subject to prior intimation to RBI. The aggregate FII/FPI investment, individually or in conjunction with other kinds of foreign investment, will not exceed sectoral/statutory cap.

     

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  • Whether the draft prospectus for IDRs to be filled with SEBI?

    Yes. Foreign issuer is required to file the draft prospectus with SEBI while complying with the requirements of SEBI (ICDR) Regulations, 2009. Any changes specified by SEBI shall be incorporated in the final prospectus to be filed with Registrar of Companies

    For more information, click here

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  • Is transfer of capital instruments from resident to non-residents permitted?

    Yes, transfer of capital instruments from resident to non-resident is permitted, s.t. prior permissions from the Reserve Bank of India, except in following cases (as mentioned in detail in Sub section 5.2 of the Consolidated FDI Policy 2017):

    1. where the pricing guidelines under FEMA, 1999 are not met, s.t. other conditions
    2. where the transfer requires prior approval of the Government per the extant FDI Policy
    3. where the transfer of shares attracts SEBI (Substantial Acquisition of Shares and Takeovers) Regulations
    4. where the investee company is in the financial sector.

    For more information, click here  

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  • What are Indian depository receipts (IDR)?

    An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India) against the underlying equity shares of issuing company to enable foreign companies to raise funds from the Indian securities Markets.

    For more information, click here.

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  • What is apostille and how to get the documents apostilled and notarized from the foreign country?

    An "apostille" is a form of authentication/certification issued to documents for use in countries that participate in the Hague Convention of 1961. Apostille is to confirm the legal authenticity of any document. A list of countries that accept apostilles is provided by the US State Department.
    Apostilles are affixed by Competent Authorities designated by the government of a state which is party to the convention.
    A list of these authorities is maintained by the Hague Conference on Private International Law. Examples of designated authorities are embassies, ministries, courts or (local) governments.
    An Apostille Certificate is official government Certificate printed or stamped onto the reverse side of a single page document or attached to multiple paged documents with green notary ribbon making it become one inseparable document. It authenticates the seal and or signature of the public official or authority such as a notary or registrar issuing the document.
     

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  • What are the pricing guidelines to be complied with given the scenario of transfer of shares from resident to non-resident?

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

    Unlisted Securities: Price to be not less than fair value worked out as per any internationally accepted pricing methodology on arm’s length basis

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  • Whether any listing permission required for issuance of IDRs?

    Yes, the issuer company is required to obtain in-principle listing permission from all the recognized stock exchanges in which the issuer proposes to get its IDRs listed.

    For more information, click here

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