CA LOKESH (Chartered Accountant) (63 Points)
12 November 2008My Dear Esteemed members
I have a doubt regarding the Private company incorporation and further procedures
1. If we incorporated a company in india with indian promoters & directors after some time can we TRANSFER shares to non residents & can we appoint NRI Directors by removing the Indian Directors?
Is there any issus involved ? Is that well within in the meaning of an Indian comapny?
Please guide me
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 12 November 2008
Dear Sadhana,
1.) You have to check the FDI limit prescribed in FEM Transfer and Issue of Securities by person resident outside India Regulation for transfering Shares and other necessary reporting to RBI (FC-GPR).
2.) With regards to Director, I think there are no restriction other than the NRI's (Director) eligibility to hold Share of that come covered under 1 above.
Regards
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 12 November 2008
In addition to what Mr.Juzer has advised, take care to comply with provisions of articles of association, which will contain restrictive clauses for share transfer.
Shiv Prakash
(164 Points)
Replied 29 October 2009
can an NRI hold 75% or more shares of an pvt. ltd. company. wht r the rules/restrictions on it. pl guide.
thnx. shiv
CAclubindia
