Wholly owned subsidiary is an incorporated entity formed and registered under the Companies Act, 2013. It is a distinct legal entity, apart from its shareholders.
1. Company form of organization
2. Separate legal entity
III. Requirement of Prior Approval of RBI:
Not required In case of FDI in sectors permitted under Automatic Route
IV. Financial Track Record of the Parent Company:
No such requirements
V. Permitted activities in India:
As per its ‘main objects’ stipulated in the Memorandum of Association subject to Indian regulations
VI. Validity period of RBI Approval:
Until the company decides to close down
i) RBI Guidelines:
There is no such registration required. Only Form FC-GPR is required to be filed within 30 days after making the allotment of shares to Subscribers of MOA. This will be after Incorporation.
ii) Registration with ROC:
Wholly owned Subsidiary needs to be Incorporated by filing form INC-32 along with prescribed documents with the Registrar of Companies.
iii) Other Registrations:
a.Permanent Account Number
c. Shops and Establishment
d. Professional Tax
VIII. Annual Activities:
i) FEMA / RBI Compliances
Reporting on or before 15th of July of every Financial Year in Form FLA about the Foreign Assets and Liabilities of the Company
ii) Companies Act Compliances:
a. Board Meetings
b. Annual General Meeting
c. Annual accounts needs to be filed with the ROC
d. Annual Return
e. Form DIR-3 KYC for each Director:
IX. Other guidelines:
The Private Company registered in India:
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