CA Saranya (Practicing Chartered Accountant) (329 Points)
28 March 2011Hi friends..
Pls clarify me the following doubts..
1. For a foreign company to open a branch in India we need 5 yrs profitability analysis of the business in their place has to be submitted to RBI-nu i read in the RBI website.
My question now is, can it be less than 5yrs becoz such company was not born before 2 years...????
2. Can two foreigners open a company in India with the position as directors??
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 28 March 2011
Hi friends..
Pls clarify me the following doubts..
1. For a foreign company to open a branch in India we need 5 yrs profitability analysis of the business in their place has to be submitted to RBI-nu i read in the RBI website.
My question now is, can it be less than 5yrs becoz such company was not born before 2 years...????
Here the foreign company shall need to provide Letter of Comfort to RBI from the parent Company. Applicants that do not satisfy the eligibility criteria and are subsidiaries of other companies may submit a Letter of Comfort from their parent company , subject to the condition that the parent company satisfies the eligibility criteria as prescribed.
2. Can two foreigners open a company in India with the position as directors??
Yes provided the sector in which they are planning to open the Company is covered under the 100% route.Otherwise also if the equity is held by Indian Companies then also foreigners can become directors.
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