Formation of subsidiary co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2012 Suppose A is listed co. wants to form subsidiary in india as pvt ltd co. say for e.g. B Pvt Ltd, A ltd want to form 100% subsidiary. NOw A ltd will hold more than 50% shares through its Managing Director. Now should A company needs to appoint its director as nominee in subsidiary who will held rest of %. ?

Deepak Maharishi

Deepak Maharishi (Expert)
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16 January 2012 Hi,

Please note that A Limited is a public limited company and to incorporate its subsidiary, you will need to have 7 members as subscribers to the memorandum of B Pvt. Ltd.

Further, you may nominate 6 more persons holding any number of shares "as a nominee of A Limited" to make a wholly owned subsidiary.

regds
Deepak

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2012 But formation of pvt ltd it requires 2 persons so why 6 more? One is A ltd throughts is MD and other is director of A who will be act as nominee.

Pls advise.

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Deepak Maharishi

Deepak Maharishi (Expert)
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16 January 2012 Hi,

As you said this B Pvt. Ltd. will be incorporated as subsidiary of A Limited, a public limited company, then B Pvt. Ltd. will require 7 members. Sections applicable to a public limited company will also apply to its subsidiary of private limited company and hence you will need to have 7 subscribers.

To make it simple, subscribers can be A Limited and 6 persons, as nominee of A Limited.

regds
Deepak