The Foreign Exchange Management Act, 1999 (FEMA) is a comprehensive legislation in India that governs foreign exchange transactions, external trade, and payments. Important sections of FEMA at a glance! Principles in FEMA that businesses must watch out for include: FEMA Sections Explained Penalties under FEMA that Businesses Need to Watch Out For!
Incorporating a private company in India can seem like a daunting task due to the multitude of legal processes and forms involved. However, with a comprehensive understanding of the steps and their importance, it becomes manageable. Incorporation gives your company a legal identity, protects your personal assets, and boosts your credibility among customers and investors. …
Steps in Incorporating a Private Company in India & Forms Required! Read More »
The provisions relating to buy-back of shares in India are governed by Section 68 to Section 70 of the Companies Act, 2013 and the Companies (Share Capital and Debentures) Rules, 2014. Buy-back of Shares of Indian Companies – The Conditions However, no buy-back of any kind of shares can be made out of the proceeds …
Buy-Back of Shares in Unlisted Indian Companies: The Rules and the Process Read More »
Investment by resident Indians and Non-Resident Indians (NRIs) in India differ in terms of treatment and taxation. Let’s explore the key differences: #1. Residential Status The primary distinction lies in the residential status of the investor. Resident Indians are individuals who reside in India for a specified period, while NRIs are Indian citizens or Persons …
What’s the Difference in Taxation for Domestic Investment by Indians and NRIs? Read More »
Investing through the Foreign Venture Capital Investor (FVCI) route provides certain advantages and opportunities for investors. Here’s an elaboration on investing through the FVCI route: The FVCI route allows foreign venture capital investors to invest in Indian startups and early-stage companies. Here are some key points to consider: Here’s how FVCIs contribute to attracting investment: …
How is Investment made via the FVCI route in India? Read More »
Under the Companies Act, 2013 of India, a private company can be considered a public company in the following circumstances: What is a Private Company as per the Indian Companies Act, 2013? According to the Companies Act, 2013 of India, a private company is defined under Section 2(68). As per the act, a private company …
Under What Circumstances will a Private Company be considered a Public Company in India? Read More »
Under the Companies Act, 2013 of India, the terms “subsidiary company” and “holding company” are defined under Sections 2(87) and 2(46) respectively. What is a Subsidiary Company? (Section 2(87)) A subsidiary company is a company in which the holding company: (i) controls the composition of the board of directors; or (ii) exercises or controls more …
What is a Subsidiary Company and a Holding Company as per Indian Law? Read More »
The Companies Act, 2013 in India covers various types of companies. The relevant sections defining the types of companies are: There are other types of companies as well, such as a foreign company, a government company, a nidhi company, a small company and dormant companies. Company (Section 2(20)) As per Section 2(20) of the Companies …
Types of Companies covered under the Companies Act, 2013? Read More »
The Companies Act, 2013 and the Companies (Share Capital and Debentures) Rules, 2014 of India, categorize preference shares into several types. Here are some of the different kinds of preference shares, along with the relevant sections and rules: Types of Preference Shares Equity Shares vs Preference Shares Under the Indian Companies Act, 2013, and the …
What are the various types of Preference Shares in Indian Companies? Read More »
Under the Indian Companies Act, 2013, a company’s share capital is classified into several types. Here are the main types of share capital, along with relevant sections: Issued Share Capital vs Subscribed Share Capital – What is the Difference? Issued share capital and subscribed share capital are two different concepts in corporate finance, each with …
What are the types of Share Capital a Company in India can have? Read More »