ACS Deepika Chowdhary (Company Secretary) (280 Points)
12 November 2011If a wholly owned foreign subsidiary of Indian Company is planning to set up a Liasioning Office in India, whether it will be governed by Fema provisions or it is free to set up LO as holiding Company is a Indian Company. Please provide your inputs with back up as it will help me to make my point clear further.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 12 November 2011
I am not clear why an Foreign subsidiary of Indian Company shall open an LO in Inida.
Normally LO is started by foreign companies who are not sure about indian market and they want to explore the Indian Market.
Technically the foreign subsidiary can start an Indian LO but regulations under FEMA need to be followed.
Anuj
+91-9810106211
femaquery @ gmail.com
ACS Deepika Chowdhary
(Company Secretary)
(280 Points)
Replied 14 November 2011
Thanx sir !! And further I will get this point clear from my seniors that why a foreign subsidiary of Indian Company requires to set up a LO.
CAclubindia
