Partnership with a non resident

Fantastic Query but i thinh that this will be guided by Law between both the countries. I m not perfectly sure......but i m eager to know the solution.

The same is not permitted as per FEMA.

Anuj

femaquery @ gmail.com

hmm. Thank you,

Anuj can you help me in the case of a company.

I want to form private limited company and it will have two Foreign Directors and the head office wants to hold 100% share in that company. I have two queries related to it ;-

1.) Is it possible to give 100% shares to the Head office (Represented by the foreign partner) or it is

    mandatory to give some part of the equity to any subsidiary company ?

2.) Notarization of the MOA from the foreign country is required in case Foreign Directors sign the MOA.

     In case the directors are in India for 30 days and they sign the MOA , is notarization from the foreign

country still required??

I am also posting this query separately so you can reply in any of them.

Thanks.

Mihir even I was eager for a reply :)

1. The answer shall depend on the work proposed to be done by the Indian Company.

2. MAy not be required subject to certain conditions.

Anuj

femaquery @ gmail.com

Dear Mayank,

Answer to part 1 depends on the objectives of the proposed entity (please be guided by FDI investment guidelines) 

Part 2, the MOA, AOA shall not require notarization.  But the directors shall be required to take DIN number which shall require their ID and address proof documentation to be notarized/ consularised depending on the country they belong too.

Dear Anuj

1.) The company will deal in trading of medical equipments. The FDI allowed is 100% through

      automatic route.

2.) Can you please specify the conditions of possible ??

Regards

Mayank

Dear Nikhil

1.) The FDI approval is not an issue as the company is aloowed 100% FDI through automatic route. My

point is regarding the company Law. Is it legally allowed to allot 100 % share to one foreign company

or it should be divided between two foreign company ( Like headquarter and its german subsidiary as 99% and 1% )

2.) I have received the DIN of the directors. The issue is regarding MOA. ROC will reject the papers if the signatures are not notarized for the foreign country.

Thanks and regards

Mayank

As per Company Law there has to be 2 shareholders ina Pvt. Ltd. Company, hence it is necessary to divide the holding(in whatever ratio) amongst the two foreign Companies.

Anuj

femaquery @ gmail.com

Thank you Anujji

Your answeres have always been very helpful

Regards

Mayank