Overseas subsidiary in dubai and hongkong

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2013 Dear Sir,
our Company is planning to float a subsidiary in Dubai and Honkong. Kindly guide me with the necessary approvals of RBI and Compliances of Companies Act 1956, if any

Thanks

Vishal Dang

Vishal Dang (Expert)
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13 May 2013 The criteria for direct investment under the Automatic Route are as under:

The Indian Party can invest up to 400% of its net worth (as per the last audited Balance Sheet) in WOS for any bonafide activity permitted as per the law of the host country. The ceiling of 400% of net worth will not be applicable where the investment is made out of balances held in the EEFC account of the Indian party or out of funds raised through ADRs/GDRs;

further the Indian Party should not be on the Reserve Bank’s exporters' caution list / list of defaulters to the banking system published/ circulated by the Credit Information Bureau of India Ltd. (CIBIL) /RBI or any other credit information company as approved by the Reserve Bank or under investigation by the Directorate of Enforcement or any investigative agency or regulatory authority; and

The Indian Party routes all the transactions relating to the investment in a JV/WOS through only one branch of an authorised dealer to be designated by the Indian Party.

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