If foreign company wants to start business in India, any specific procedure or any specific provisions applicable to them as The Companies Act,1956 to be followed?
Menu
Applicability of provisions of companies act
Replies (1)
To set up business operations in India, a foreign company has following options:
1. As an Indian Company (‘IC’) i.e. as incorporated entity under the Companies Act 1956.
2. As a Foreign Company (‘FC’) i.e. as an unincorporated entity
1. As an Indian Company (‘IC’) i.e. as incorporated entity under the Companies Act 1956.
(a) Through Joint Venture (JV) with some Indian partner
(b) Wholly Owned Subsidiary (WOS)
A foreign company planning to form a subsidiary in India, in addition to meeting all requirements of forming a company, is required to seek governmental approval before investing in India. Some approvals are automatic, -RBI Approvals - though application is required for those approvals. Special Permission - FIPB Approvals - could be obtained to invest over and above the regular percentage allowed.
2. As a Foreign Company (‘FC’) i.e. as an unincorporated entity
A foreign company can also set up an office in India as a foreign company (without incorporating a company in India) under following formats:
(a) Through Liaison office (i.e. Representative office) or
(b) Branch office or
(c) Project office
Recent Topics :
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
Related Topics :
CAclubindia
