Floation of a company
This query is : Resolved
07 September 2010
Dear Friends
I would like to introduce myself as a CA Final student
An Indian citizen residing abroad in collaboration with a foreign entity wants to float a company in India. The foreign entity will be holding about 60-80% shares in the new company and the entire work of the new Indian company will be provided by the foreign entity based at Italy. The proprietor of the foreign entity will be one director and the other director will be based at India and he will be the second director who shall look after the affairs of the new company. The company does not want to take any work from India. The entire work supplied by Italian entity will be in the nature of an outsourcing activity. The proposed capital investment is about Rs.5 Lakhs. Now the queries are as under:
1. What is the procedure and the documents required by the foreign national for taking the DIN.
2. Whether any other additional formalities are requeried for formation of the company as there is a foreign national.
3. What is the procedure for bringing in the share capital of the foreign entity. What are the legal compliances under the FEMA, RBI and other enactment requirements in this regard.
4. What is taxation aspect of this combination. I think that this will be treated as Non Resident Company since the control and management is partly outside India.
5. Where the company is receiving its entire income from Italy, whether the same will be taxable in India. If the Italian entity pays any service/outsourcing charges to Indian company, whether the same will be taxable in India.
6. Whether the company is bound take the IEC No.
7. The number of directors is two; one Italian and the other Indian Citizen. Whether any modification in this part will be beneficial to the company.
Learned members views/suggestions are solicited
Thanks in advance
Santhosh Kumar P
I would like to introduce myself as a CA Final student
An Indian citizen residing abroad in collaboration with a foreign entity wants to float a company in India. The foreign entity will be holding about 60-80% shares in the new company and the entire work of the new Indian company will be provided by the foreign entity based at Italy. The proprietor of the foreign entity will be one director and the other director will be based at India and he will be the second director who shall look after the affairs of the new company. The company does not want to take any work from India. The entire work supplied by Italian entity will be in the nature of an outsourcing activity. The proposed capital investment is about Rs.5 Lakhs. Now the queries are as under:
1. What is the procedure and the documents required by the foreign national for taking the DIN.
2. Whether any other additional formalities are requeried for formation of the company as there is a foreign national.
3. What is the procedure for bringing in the share capital of the foreign entity. What are the legal compliances under the FEMA, RBI and other enactment requirements in this regard.
4. What is taxation aspect of this combination. I think that this will be treated as Non Resident Company since the control and management is partly outside India.
5. Where the company is receiving its entire income from Italy, whether the same will be taxable in India. If the Italian entity pays any service/outsourcing charges to Indian company, whether the same will be taxable in India.
6. Whether the company is bound take the IEC No.
7. The number of directors is two; one Italian and the other Indian Citizen. Whether any modification in this part will be beneficial to the company.
Learned members views/suggestions are solicited
Thanks in advance
Santhosh Kumar P
07 September 2010
Dear Sir,
What you have mentioned is very much lenthy process and take time to prepare answer you may contact the professional if you want to carryout your work or if this is just a mindquery its too much.
What you have mentioned is very much lenthy process and take time to prepare answer you may contact the professional if you want to carryout your work or if this is just a mindquery its too much.
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