Wholly owned subsidiary of Foreign Company

2126 views 3 replies

Neeta

Finance

345 Points Joined December 2009

Hello Everyone

Sorry for my query is not exclusively specific

A company ( reg in India )which is a wholly owned sub of a foreign company , can it go purely as other companies ( not sub of foreign cos ) except the requirement in respect of RBI . I think its all that the Company is registered in India and the extra application comes is in respect of RBI requirements apllies.

Please tell me where does the major difference lies , if any ,between a wholly owned sub of a foreign co and a co with no foreign connections??

Regards

Replies (3)

Aman Jain

Company Secretary in Practice

165 Points Joined November 2007

Dear Neeta,

except RBI compliances for inward remittances information and annual return(FC-GPR) there is no difference in indian and WOS of foreign company since your company not come under sec. 4(7) of co. act, 1956.

CS MD Osman Akthar

Company Secretary & CA(Final)

78 Points Joined June 2007

Dear Neeta,

Your opinion is correct to the extent of additional compliances with RBI for Indian WOS of F'Co. But indirectly many areas are restricted compared to Indian WOS of I'Co few are

1.Restrictions on Downturn Investments by Indian WOS of F'Co.

2.Restrictions on Area of Business/Objects of Business.

3.FIPB permission

regards,,,,