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Procedure for forming Wholly owned subsidiary of foreign Co

2845 views 1 replies

Singh

owner

24 Points Posted on 28 August 2010

Dear Friends

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

Replies (1)

Kumar

Legal Consultant

358 Points Posted on 30 August 2010

Regarding company incorporation if you are using the F.Co name here in India to incorporate the company then kindly obtain NOC from the F.Co along with Board resolution for use of the name.Kindly note that the doeumnts you are asking should be duly legalised.If you tell us the name of the country from where the docuemnts are to be brought then it will be easy to tell you the procedure whether there should be notorization and counsalrisation or simply notorization plus appostilisation are required on the documents which you are asking from F.co.

Yours stepwise procedure is in order.

Regards