If a foreign company holds 100% share of an indian company. Does the Indian Co will be treated as foreign Co??
What will be the obligations of Indian Co in this regard???
3 Replies
Gargi Ranade
(CS)
(619 Points)
Replied 28 April 2010
Hi Renu !!
Refer Section 4 subsection 7 , it is as follow
" A Private Compan, being a subsidiary of a body corporate incorporated outside India ,which if incorporated in India would be a public company within the meaning of this Act, shall be deemed for the purpose of this Act to bae a subsidiary of a public company if the entire share capital in that private company is not held by that body corporate whether alone or togather with one or more other bodies corporate incorporated outside India.
Subsection 7 was inserted so that private company registered in India which is subsidiary of forign public Company , shall be at par with an Indian Private Company which is a asubsidiary of a public company registered in India. However ,Private Company registered in India which is a wholly owned subsidiary of a public company incorporated outside India are kept outside the scope of this section.
Thus if it is Pvt. co. which is 100% subsidiary of Forign Company , all provision applicable to Private Co. are applicable to this compan .
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