Foreign company

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RAVI SONI (Querist)
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29 February 2012 A Chinese Company is holding 99.99% shareholding in an Indian company (Incorporated in Kolkata) so in this case whether the Indian Company will be considered as " Foreign Company ".

If it will be considered as foreign company then apart from Section 592 to 602 will any other sections will be applicable as a foreign company.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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29 February 2012 No, Even if it holds 100% holding in the Indian Company, Indian Company since incorporated in the laws of India it will always be treated as Indian Company. Pre-requisite to be called foreign company is that the company should be registered in laws outside india.....

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Ajay Mishra

Ajay Mishra (Expert)
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01 March 2012 Agree with Expert.

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Ravi Jhamb

Ravi Jhamb (Expert)
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01 March 2012 Firstly Company is establish in india under company Act 1956. A Company can not sell his hold more than 51% to foreign company. E.g Wall-Mart case

Ajay Mishra

Ajay Mishra (Expert)
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01 March 2012 Dear Ravi

Their are lots of sector in which 100% FDI is permitted like, petroleum, NBFC, Development of township, print media etc....

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