Shareholding of indian pvt. ltd. in foreign company

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Hello Friends,

I want to ask what are the responsibilities of a pvt. ltd. company from a corporate law and taxation point of view if it has shareholding in a foreign company.

e.g. Company A is a foreign company. It gives 50% of its shareholding to a Pvt. Ltd. company  'B' in India. Note that 'B' has not invested anything but is a shareholder in company A. Now from an Indian corporate law and taxation point of view what are the obligations of B if any?

Thank you for guidance.

Regards

Pathak

Replies (1)

Here Company B cannot just become shareholder in Company A.

 

There are FEMA guidelines specified under ODI whih need to be followed.

 

Also sec 56 from the Income tax angle also needs to be seen.

 

 

Anuj

femaquery @ gmail.com

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