• What is the time limit for filing form INC-5?

    Form INC-5 shall be filed within sixty days of the date on which its paid-up share capital is increased beyond INR fifty lakh or the last day of the relevant period during which its average annual turnover exceeds INR two crore.

    For more information, click here.

  • What are the documents involved in formation of Limited Liability Partnership in India?

    a) Proof of identity and residential address of the Designated partners;
    b) Proof of Registered office address and Copy of utility Bills not older than 2 months; 
    c) NOC from owner of the premises;
    d) Details of Partners and Designated Partners;
    e) Details LLP(s) and Company(s) in which Partners are interested; 
    f) Subscribers' sheet including consent of Partners;
    g) Copy of certificate of incorporation of the foreign LLP;
    h) Copy of Authority under which Foreign Limited Liability Partnership is establishing the place of business in India;
    i) Power of Attorney in favour of Authorised Representative;

    If LLP’s name is applied with the incorporation application:
    a) Approval of the owner of the trademark or the applicant of such trademark for registration of Trademark if the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act.
    b) Copy of approval in case the proposed name contains any word(s) or expression(s) which requires approval from central government;

    Note: All the documents to be signed by the Foreign Directors and Foreign subscribers requires notarization and apostillation from the foreign country.
     
  • What is the tenure of an auditor? What is the tenure of the first auditor?

    An individual can serve as an auditor for a term of five consecutive years. A firm can serve two terms of five consecutive years each, i.e., a total of 10 years as an auditor.

    Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting.

    For more information, click here.

  • Is PAN and AADHAAR mandatory?

    Yes. The companies (incorporation) rules notified has liberalized many requirements in respect of Proof of Identity and Proof of residence in respect of Subscribers and Directors. The Companies (Incorporation) third Amendment Rules dated 27th July 2016 has relaxed the mandatory attachment of proof of identity and residence in respect of a subscriber having a valid DIN.
    For further details please access following link.

  • To which authority the application for establishing Branch office/ Liaison Office/ Project office is required to be submitted?

    Generally, the application for establishing BO / LO/ PO in India may be submitted by the non-resident entity in the prescribed form to Authorised Dealer Bank (AD Bank) identified by the applicant along with the prescribed documents.

  • How is control defined for companies?

    Control includes the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner.

    For more information, click here.

  • Can provisional DIN be utilized for registration of DSC at MCA portal?

    No, director must have an approved DIN to register the DSC on MCA portal.
    For further details please access following link.

  • Whether subscribers' photo is required in SPICe forms?

    No. ID and address proof required . Required in case of physical MoA/ AoA subscriber sheet.
    For further details please access following link.

  • What should be the first financial year of the newly incorporated company?

    The first financial year of a company means a period beginning from the date of incorporation and ending on 31 March of the following year.  However, if the company is incorporated on or after 1 January of the year, the financial year will be from the date of incorporation till 31 March of the following financial year.  For example, if a company is incorporate on 1 February 2019, the first financial year will be 1 February 2019 to 31 March 2020.

  • 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.

  • How can an Indian company receive foreign investment?

    Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route, are considered by respective Administrative Ministry/Department. Foreign investment in sectors/activities under government approval route will be subject to government approval where:

    a) An Indian company is being established with foreign investment and is not owned by a resident entity.

    b) An Indian company is being established with foreign investment and is not controlled by a resident entity.

    c) The control of an existing Indian company, currently owned or controlled by resident Indian citizens and Indian companies, which are owned or controlled by resident Indian citizens, will be/is being transferred/passed on to a non-resident entity as a consequence of transfer of shares and/or fresh issue of shares to nonresident entities through amalgamation, merger/demerger, acquisition etc.

    d) The ownership of an existing Indian company, currently owned or controlled by resident Indian citizens and Indian companies, which are owned or controlled by resident Indian citizens, will be/is being transferred/passed on to a non-resident entity as a consequence of transfer of shares and/or fresh issue of shares to nonresident entities through amalgamation, merger/demerger, acquisition etc.

    e) It is clarified that Foreign investment shall include all types of foreign investments, direct and indirect, regardless of whether the said investments have been made under Schedule 1 (FDI), 2 (FII), 2A (FPI), 3 (NRI), 6 (FVCI), 9 (LLPs), 10 (DRs) and 11(Investment Vehicles) of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations. FCCBs and DRs having underlying of instruments which can be issued under Schedule 5, being in the nature of debt, shall not be treated as foreign investment. However, any equity holding by a person resident outside India resulting from conversion of any debt instrument under any arrangement shall be reckoned as foreign investment.

    f) Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident outside India) Regulations will be deemed to be domestic investment at par with the investment made by residents.

    g) A company, trust and partnership firm incorporated outside India and owned and controlled by non-resident Indians will be eligible for investments under Schedule 4 of FEMA (Transfer or issue of Security by Persons Resident Outside India) Regulations and such investment will also be deemed domestic investment at par with the investment made by residents.

  • Which act governs foreign fund investments?

    Foreign Investments and repatriation is governed by Foreign Exchange Management Act.

    For more information, click here.

  • How can the sale/ maturity proceeds taken by the Foreign Venture Capital Investor?

    The sale/ maturity proceeds (net of taxes) of the securities may be remitted outside India or credited to the foreign currency account or a Special Non-resident Rupee Account of the FVCI.

    For more information, click here.

  • What does the FDI policy entail with regards to issuing equity shares under government route?

    Issue of equity shares under the FDI Policy is allowed under the Government route for the following:

    • Import of capital goods/ machinery/ equipment (excluding second-hand machinery)
    • Pre-operative/pre-incorporation expenses (including payments of rent, etc.)

    However, these are subject to compliance with several conditions, as mentioned in sub-section (iv), section (6) of Annexure-3 of the Consolidated FDI Policy

    For more information, click here

  • Can an IDR holder appoint any nominee in case of death?

    Yes, an IDR holder can at any time nominate a person to whom his IDRs shall vest in the event of his death.

    For more information, click here

  • Are there any restrictions on the sectors for FDI in India?

    Yes, investments by non-residents can be permitted in the capital of a resident entity in certain sectors/activity with entry conditions. Such conditions may include norms for minimum capitalization, lock-in period, etc. as per the latest FDI policy.

    For more information, click here.

  • What is Foreign Investment Promotion Board?

    The Foreign Investment Promotion Board (FIPB) has been replaced by Foreign Investment Facilitation Portal (FIFP). FIFP, housed in the Department of Economic Affairs, Ministry of Finance, is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.

    For more information, click here.

     

  • Can a foreign investor invest in shares issued by an unlisted company in India?

    Yes. As per the regulations/ guidelines issued by the Reserve Bank of India/ Government of India, investments can be made in shares issued by an unlisted Indian company subject to compliance with FEMA provisions such as pricing, reporting, etc.

    For more information, click here.

  • Can foreigners establish a partnership/proprietorship concern in India?

    No, only NRIs are allowed to set up partnership/ proprietorship concerns in India on non-repatriation basis.

    For more information, click here.

  • What is fungibility window?

    Fungibility window is the time period specified by the issuer company during which IDR holders can apply for conversion/ redemption of IDRs into underlying equity shares.

    For more information, click here