Provisions under the Companies Act, 1956:Sections 591 to 602 of the Companies Act, 1956 dealt with foreign companies having a place of business in India. 2.1 Regulation under the Companies Act, 2013 Unlike FEMA where different provisions for each of the entity being LO, BO and PO are specified on the basis of activity for which it is established in India. Under the Companies Act, all the unincorporated entities being LO, BO and PO are regulated in the same fashion as the Act does not differentiate on the basis of purpose for which it is established. We have briefly discussed the provisions of the Companies Act, 2013 below in relation to LO, BO and PO for better understanding. LO, BO and PO are unincorporated place of business of foreign company in India and is regulated by the Companies Act as well under FEMA. Project office (PO) is opened for a limited purpose of execution of project and life of project office is limited to the tenure of project. The activities that can be undertaken by BO and LO them are specified and they cannot undertake any other activity which is not specified. Liaison Office (LO) and Branch Office (BO) provide window to foreign investors to have the initial understanding of the business environment in India. In India, a foreign company can enter by way of: IntroductionĪ foreign entity before entering into new territory would like to check the business environment, available market and acceptability of its product, social and economic influencer of any new country. It will be helpful for professionals, CFOs, AD Banks, etc. The coverage of this book includes a wide range of complex cross-border transactions. 2.1 Regulation under the Companies Act, 2013ģ.6 Application for Additional Offices and Activities Checkout Taxmann's FEMA Practice Manual which is a comprehensive day to day commentary on FEMA for professionals presented in a simple, exhaustive & practically useful manner with examples.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |