Wholly owned company
Querist : Anonymous
What are the steps, process & forms for incorporation of 100% foreign wholly owned pvt ltd company in India?
Moreover Sir, since the promoter is a foreign company, who will be the applicant for Form 1A (Name Approval)?
Can we form a 100% foreign wholly owned company in India with all directors and shareholders not an Indian Resident/citizen?
Yes U can open 100" WOS in India.
NON-RESIDENT INDIAN AS SUBSCRIBER TO THE MOA/AOA
The Reserve Bank of India had given general permission under section 29(1)(b) of the former FERA, 1973 to NRI to subscribe to the MOA of an Indian company and to take shares as a subscriber .(Notification No. FERA 143/93-RB, dated 26-4-1993 issued by RBI, Mumbai in this regard is reproduced hereunder:
“The RBI has given general permission to NRI to subscribe to the MOA/AOA of Indian Company for the purpose of Incorporation of the company subject to the condition that:-
(a) the total face value of the shares to be taken by NRI does not exceed Rs. 10,000
(b) the company is being manly formed for undertaking industrial activities
(c) the MOA of such company does not permit the company to take up any agriculture/plantation activities and to deal in real estate business other than developing real estate, and
(d) such company shall file a declaration in the prescribed form with the RBI regarding particular of such shares issued within 90days from the date of incorporation of the company.
DCA Circular dated 16-2-1995 clarifies that there can not be any restriction for incorporation of a company whether all the subscriber to the MOA/AOA/ proposed directors are residing abroad, being either foreign nationals, or NRI subject to the approval of RBI, where necessary.
The RBI may issue such a general permission also under FEMA, 1999 also. The FEMA(Permissible Capital Account Transactions) Regulations, 2000 allow persons resident outside India to invest in an issue of security by body corporate or an entity in India.
Views of other experts solicited,
Best Regard
Querist : Anonymous
Is Section 187C of the companies act applicable in this case?
Querist : Anonymous
Is Section 187C of the companies act applicable in this case?
Yes, u will use the provision of section 187 C for appointing nominee.
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