Dear Friends
Hi
My client in overseas wants to set up wholly owned subsidiary in India. Please suggest the procedures for forming a foreign susbsidary in India.
As per my understanding of law - Following would be the steps - Please correct me -
1) Resolution by foreign company for setting up a subsidiary in India
2) Resolution by F.co authorised an Indian to subscribe MOA and AOA.
3) Embassy certified MOA and AOA in English
4) Follow normal procedure to form a company with Registrar of Company.
5) If it is under automatic approval scheme from RBI - Intimation in relevent form for inward remittance for subscripttion of share capital.
6) Income Tax will be charged at 40% + cess and will have tax credit at parent company country if it covers under DTT.
7) Profits after tax will be repatriable in full.
regards
Singh
CAclubindia
