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100% foreign subsidiary formation

gopinathpara (student) (77 Points)

08 March 2014

Dear All,

I’ve a query. I’m asking with curiosity .I hope you can help me out with this.

Currently I’m Doing a 100% foreign subsidiary formation.so Initially we passed a board resolution by foreign company for appointing two Indians as promoters of the company. then we filed form 1A with by mentioning those two persons as promoters .

But when I’m filing form 1, I came to know that we need to include the foreign company as a promoter in form 1A ,and then as a promoter with 9999 subscribed share in form 1. So finally I came to know that I made a mistake in form 1A without mentioning foreign parent company as promoter. Now I would like to know your suggestions in dealing with this situation.

Could you please give me your views on this situation and how I can proceed further ?

Thanks in advance

Gopi

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 08 March 2014

You can incorporate the company with Indian promoters and after incorporation you can transfer shares to foreign company.

gopinathpara (student) (77 Points)
Replied 08 March 2014

Sir Thanks for your reply. if we incorporate it with indian promotors X and Y with X has shares of 9999 and Y with share of 1. will the company is still treated as 100% subsidery even we didn't transfer the shares because we initially passed a resolution by forign company saying that the two persons are representators of the forigen compay and the directors signed MOA as a representators.