16 December 2010
I have a private limited compnay,indian co. under which 85% of paid up capital is held by a foriegn incorporated company. whether the indian private co. is a subsidiary co.of this forien co.if yes than under which section of Companies Act 1956 it comes. And should i give this information at the time filing of form 23AC. What is the Accounting Standard of this.
As per section 4(7) of the Companies Act, 1956, since only 85% of the paid up capital is held by the foreign company, the said private Company will be treated as a 'Private Company which is a subsidiary of a Public Company' and will have to comply with the applicable proviions of the Companies Act, 1956...
In case the entire share capital of the private company is held by the Foreign Company singly or jointly with one or more body corporates incorporated outside india, then the Private Company shall not be treated as 'Private Company which is a subsidiary of a Public Company' and will have the status of an Independent Private Company....
Yes you will have to mention the name of the Holding Company in Form 23AC.
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