Investment by a Foreign Company in india
This query is : Resolved
26 December 2008
M/s LB is a compny registered in USA.
M/s ILS is a company registered in India.
They are into the same business.The president of LB is infact the son of CMD of ILS.
Now, the family wants to open another company (different business line). Regarding funding, view of the experts is sought.
Whether it would be better if a new company is opened in India? Can LB invest in the new company direct ? What would be the case if the new company is opened as a (a) subsidiary of ILS or (b) the subsidiary of LB? What should be best modus operandi to transfer funds from US to India?
SKG & NG are the directors of ILS. AG (son of SKG) is the NRI & president of LB.
Can AG be appointed as Driector in the new Company and bring in funds as "unsecured loans by director?
M/s ILS is a company registered in India.
They are into the same business.The president of LB is infact the son of CMD of ILS.
Now, the family wants to open another company (different business line). Regarding funding, view of the experts is sought.
Whether it would be better if a new company is opened in India? Can LB invest in the new company direct ? What would be the case if the new company is opened as a (a) subsidiary of ILS or (b) the subsidiary of LB? What should be best modus operandi to transfer funds from US to India?
SKG & NG are the directors of ILS. AG (son of SKG) is the NRI & president of LB.
Can AG be appointed as Driector in the new Company and bring in funds as "unsecured loans by director?
26 December 2008
As per FEMA regulations the easiest way in the above situation is that LB can open a subsidiary in India. The funds can be transfered by way of subscription to MOA.
Bringing the funds as unsecured loan from AG will be difficult.
Bringing the funds as unsecured loan from AG will be difficult.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
