Closure of a foreign subsidiary

Pvt ltd 2523 views 2 replies

Hi,

I would like to understand the avenues for closure of a subsidiary of a foreign company in India (constituted as a private limited company).  To the best of my knowledge, there are 3 avenues- latest exit scheme (FTS), transfer of shares of company and voluntary winding up of company, if they want to avoid the legal process. YThis is ofcourse if there are no liabilities and assets and there is no dispute in any court of law against the company. Kindly advise if my understanding is correct.    Also would be grateful if you can share you experience in similar matter as reagdrs time frame, procedures etc

Reagards,

Replies (2)

Yes the understanding is correct except that for Exit schemethere are conditions to be met(as spelt by you).

For transfer of shares , the book value has to be calculated under FEMA and Income Tax act.

Voluntary winding is time consuming process.

So first 2 options are good provided the financials of Company fit in the criteria of government provided for those options.

 

Anuj

091-9810106211

guys can any one say the procedure for closing of Foreign subsidiary in INDIA?

 

Thanks in advance


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