An Indian company is entitled to invest in a foreign entity subject to the ceiling limits on investments as imposed by Companies Act and Foreign Exchange Management Act. In India, RBI mandates certain Minimum Requirement Criteria, on compliance of the same and on reporting the same to RBI the compliance is complete. In a situation where the Indian
An Indian company is entitled to invest in a foreign entity subject to the ceiling limits on investments as imposed by Companies Act and Foreign Exchange Management Act. In India, RBI mandates certain Minimum Requirement Criteria, on compliance of the same and on reporting the same to RBI the compliance is complete. In a situation where the Indian entity is unable to meet with any of the criteria’s, it shall approach RBI before proceeding with the transaction & get necessary approvals.
You should also ensure your investment abroad is safeguarded under other country laws and for such investment repatriation benefits into India are available. The valuation of the investment also plays a crucial role. There are various ways of funding like issuing securities abroad, borrowing, swap of shares, etc… and approval will differ on case to case basis. RBI timelines should be adhered with immaterial whether it a reporting requirement or an approval requirement.
Lawlabz offers complete advisory services for starting a subsidiary abroad. Our professional and experienced team can help you with all the approvals from RBI and will guide you with necessary steps required in India to set such subsidiary abroad.
Setting-up Subsidiary Abroad Advisory Package: [Rs.2laks for every set-up*]
- Strategy:
- Advising the suitable form of foreign office
- Advising on the approvals required and the value of investment
- Advising on the terms & conditions for making the investment
- Procedure:
- Preparing the necessary application for permission of Reserve Bank of India
- Preparing the supporting documents along with application
- Coordinating with officials at Reserve Bank of India for approval of said application
- Replying to queries raised by Reserve Bank of India.
- Certification:
- Relevant certified copies of necessary extracts and declaration shall be given by Professionals and Authorised signatories of the company
- Other services, on request:
- Assisting in procuring the approvals /licences , if any required to start up the business
- Assisting in getting the preliminary tax and commercial registrations.
Support Package: [will vary on case to case basis]
- Compliance:
- Assisting in protection of intellectual property rights like Trademark, etc…
- Retainership for ongoing Legal Compliance Management – So Much or Much Much
- Retainership for ongoing secretarial compliance Maintenance of corporate secretarial records (periodic statutory filings, Board papers, maintenance of statutory registers, interacting with statutory auditors) – This Much or That Much
