Dear Sirs,
An Indian limited company wishes to buy the shares of a newly incorporated U.S. Company that will be involved in Diamond trade (precious stones). Amount of remittance shall be around USD 1000 only as there is no real worth in the company yet.
Are there any statutory permissions that need to be taken? Are there any restrictions imposed?
What disclosures will have to be made by the Indian company in its annual statements?
What are the relevant laws (like FEMA etc....)that need to be studied for this transaction and arrangement of buying 100% shares in the U.S. company?
Will the Indian company be subject to pay taxes on the profits of the U.S. company (note: not dividend payments will be made)?
Will the accounts of the U.S. company have to be consolidated/ disclosed in the anuual return of the Indian company
Thanks
Rahul Rampuria
CAclubindia
