Indian pvt ltd company's subsidiary company formation in singapore

This query is : Resolved

patel (Querist)
Follow

13 February 2014 our Indan company (XYZ pvt ltd) is planning to float a subsidiary in singapore (XYZ pte ltd),

We are not making any investment in Singapore branch, except 1$ minimum working capital required to open Singapore subsidiary registration. With the vintage of promoters of the company, we can either get advance payments from customers or credit purchases from foreign suppliers.

We will not be affecting any sales/purchase/transfers of funds/stock either from Indian head office to Singapore subsidiary or vice versa.

do we need to take any approval/intimation from RBI in form of ODI or any other departments approval is required?

Please reply.

Thanks,

Patel

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

13 February 2014 you dont need to take approval as the above is covered under automatic route. However, any transaction with the subsidiary are to be routed through AD and the AD shall have the responsility that you are complying with the regulations.

For eg: when the subsidiary issues the shares, you shall have to submit copy of the same to the AD

Also, annual performance report needs to be submitted.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now