Uday (Company Secretary) (127 Points)
11 April 2013
The FEMA Act, 1999 states the criteria for the residential status of an individual.
But what about the Companies Act, 1956? How to determine the residential status of an individual under the Companies Act?
If suppose an Indian is staying in a foreign country for some months in a year, how to determine his residential status under the Companies Act?
Where is it mentioned in the Companies Act, 1956 that a period of 1 year stay in India amounts to a "resident" of India?
Uday
(Company Secretary)
(127 Points)
Replied 12 April 2013
| Originally posted by : IndianTaxUpdates.com | ||
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Why should Companies Act have provision for Person Residentail Status?? What is the need??? |
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Consider a period from 1st April 2010 to 31st March 2013. THIS IS A PERIOD OF 3 FINANCIAL YEARS. Now suppose a person is born in India but not resident in India for 28 months out of 36 months in three years, so under FEMA he becomes NR.
In April 2013,he wants to be a director in a Company, should we treat him as a Non Resident under Companies Act also? So is the Director resident or non resident?
Is it that Nationality is the only deciding criteria for residency in the COmpanies Act?
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