Query relating to Company's Act & FEMA.

vishal

A 1. If the shares are not issued within 6 months from the date of receipt it should be refunded..or else with the permission of the RBI we can allotn the shares

A 2. Valuation should be as per CCI Guidelines certified by CA which should not be less than face value.

A 3. See A1 above and u need to intimate the receipt of funds withinn 30 days thru' AD as per reporting procedure specified in A P(Dir Cercular) dated 30.05.2008. After allotment u need to file Form FCGPR within 30 days.

A 4. Situation is not clear

A 5. Yes its there.. Ask specific query

 

rgs

Hi Friends,

An Indian Company wants to enter into a joint venture with a foreign company to provide security agency services Please confirm  is there any sectoral cap for the FDI in Security Agency service?

 

Secondly, do the Company need to follow any procedure to issue the shares to this foreign company (under a Joint venture agreement)  besides the normal procedure followed for issuing the shares?

 

Thirdly,  as in this case the shares will be issued  to the Foreign company  of the newly set up Joint venture Company. So is it required to get the valuation of  shares certified from the CA ?

Dear Ekta

1) I think there is no sectoral cap on security business. you need to check the latest FDI circular avalaible on rbi.org.in. 

2) You need to comply with FEMA regualtions like intimation regarding inward remitance, filing of form FCGPR, CA valuation etc. 

3) Yes valuation of CA is mandatory even for new companies. 

Regards

Malav 

Dear All,

Would like to in case of calcuation of MD remuneration, whether diff between allotment price (in case of ESOP to MD) and valuation price, can be treated as remuneration us 198.

Also could any one give refrence material or notes on this.

Hi

 

 

I think this file  will help you.

 

 

Regards

Thanks for the file Mr.Mishra

Hi,

Anyone please tell me what are the kind of the investing companies which are falling under the below mentioned sector/activity

Also clarify me the the details given in the column of "other condition"  

 

Sector/Activity	FDI Cap /Equity	Entry  Route	Other conditions
Investing companies in  infrastructure / services sector (except telecom sector)	100%	FIPB	Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing company will not be set off against this cap provided the foreign direct investment in such investing company does not exceed 49% and the management of the investing company is with the Indian owners.

My Client is planning to invest money into a hotel project in USA. He would like to know whether he can  remit foreign exchange in his wife's name who will head the company in USA and mange the business. For this he wants to know how much he can send from india under her name , his name and in the name of his sons who are minors. Or should he send the money thru his company to the holding company in USA. Please email to gnatesanca @ gmail.com

G.Natesan

Chartered Accountant

Can anyone help me to get the procedure for reclassification of Share Capital?

Suppose a company (referred as "ABC") has transferred share application money to its Wholly Owned Subsidiary (referred as "XYZ") outside India more than an year back.

Is there is any time limit would be applicable to the XYZ to allot shares to ABC.

Suppose a company (referred as "ABC") has transferred share application money to its Wholly Owned Subsidiary (referred as "XYZ") outside India more than an year back.

Is there is any time limit would be applicable to the XYZ to allot shares to ABC.

As per FEMA regulations the same should have been reported in Form ODI.

Also the allotment of shares shall dpend on the laws of the country where the amount is invested.

However ideally there should be no delay in the same.

Dear All, Our client is interested to represent a software company from US to promote and sell their software product in India. Billing shall be directly done by US co to Indian customers. Our client shall get only commission on sales. For this purpose Indian selling team shall carry cards of their company including mention of software company brand. They need to know from FEMA perspective any issues/ compliances / dos/ don’t required. Kindly advise. Thanks in Advance. Regards, Pooja Company Secretary

Pooja,

There shall be no issues in the FEMA but there shall be implications under the Income Tax Act. The Indian client shall be deemed as Agency PE of US Company and the proportionate income of US Company's income in US shall need to be charged in India.

 

Anuj

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