Share capital - FEMA implications

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shashank (Querist)

16 February 2011 Comp Xpvt.ltd is a 100 % subsidary of an international company(Y Int Inc). In the year 2010, X pvt.ltd received additional share capital from Y co. in US dollars..Can anyone please help me out on the compliances of both Indian companies Act and FEMA ?

udit sharma

udit sharma (Expert)

16 February 2011 Under FEMA:

Within 30 days of the receipt of share application money,the Company has to initmate the same to RBI through its Authorised Dealer in the prescribed format and attachments.

Within 180 days of the receipt of share application money, u will have to allot the shares to the Non resident investor.

Within 30 days from the date of allotment, you will have to file Part A of Form FC-GPR with the RBI through Authorised Dealer.

Part B of Form FC - GPR to be filed on an Annual basis on or before 31st July directly with RBI.

Under Companies Act, 1956

File return of allotment in prescribed Form 2 within 30 days of allotment of shares as per section 75 of the Companies Act, 1956

Within 3 months from the date of allotment, issue the Share Certificates.

God Bless

CS Udit Sharma

shashank

shashank (Querist)

16 February 2011 Thanks a lot Udit. This will definitely serve my purpose.

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