General Circular No. 23/2014, F. N: 1/ 13/2013
-CL-V, dated 25th June, 2014
Clarification relating to Incorporation of a Company
i.e. Company Incorporated outside India
Government
has received references seeking clarity about the status of subsidiaries
incorporated/to be incorporated by companies incorporated outside India.
Attention has, in particular, been drawn to the absence of the deeming provision
of Sub-Section (7) of Section 4 of the Companies Act, 1956 in the Companies
Act, 2013 (New Act).
The
matter has been examined in the Ministry in the light of Sections 2(68), 2(71)
and 2(87) of the New Act and it is clarified that there is no bar in the new
Act for a company incorporated outside India to incorporate a subsidiary either
as a public company or a private company. An existing company, being a
subsidiary of a company incorporated outside India, registered under the
Companies Act, 1956, either as private company or a public company by virtue of
Section 4(7) of that Act, will continue as a private company or public company,
as the case may be, without any change in the incorporation status of such
company.
3. This issues
with approval of Competent Authority.
.
.
.
.
0 comments:
Post a Comment