Foreign shareholders and directors in a private company
Sathyan Avinash
(Querist) 15 September 2011
This query is : Resolved
I have hereby received a request for incorporating a private limited company with the facts being the following:
1. All the shareholders are foreigners.
2. All the Directors are foreigners.
3. But the Company wants to have place of registered office in India and carry on its operations in India.
Please guide me through this case.
Thank you in advance
R.Ramachandran
(Expert) 15 September 2011
Dear Mr. Sathyan,
For another query by you at http://www.lawyersclubindia.com/experts/Sample-required-for-mall-agreement-230071.asp
I had replied as under:
“Right now, as per your profile, you are only a student.
Therefore the question of your assisting anybody in preparation of an agreement of the kind sought by you simply does not arise.
Further more, since it is a commercial agreement, and several factors have to be considered before drafting any such agreement in order to protect the interests of the parties thereto, would you mind engaging a professional lawyer instead of trying to get a draft which may not suit all the situations.”
It is not clear how anybody that too Foreign shareholders would approach you for this kind of task, considering that you are still only a student. Otherwise, in your profile probably you have wrongly indicated as "Student".
So, please come clean with your profile.
Sathyan Avinash
(Querist) 15 September 2011
Dear Mr.Ramachandran,
First of all I thank you for your kind reply.On this occassion i need to clarify about myself. The information I have provided being a student in my profile is a fact . I am a student of CS Professional. As a part of the procedures of the rules of ICSI , I am required to undergo 15 months apprenticeship training with a practicing professsional. And obliging by that rule I am currently undergoing apprenticeship training in a firm of company secretaries. Hence i deal with clients everyday directly and hence i tend to have all these doubts. So kindly try to understand my status and assist me inorder to secure a good name for myself at my firm.
Thank you and sorry for the confusion i caused with the profile status.
Raj Kumar Makkad
(Expert) 15 September 2011
Sathyan! If your clarification is good one then I suggest to be active on related site and not here for your academic corporate related queries. I can suggest you o raise all such queries on www.taxguru.com wherein your similar professional can give relevant replies to your questions.
M V Gupta
(Expert) 18 September 2011
Mr. Satyan, the subject involves FEMA Act also besides the companies Act. I suggest to check up the dirctions issued by the RBI under the FEMA Act regarding restrictions on Foreign investments in India. There are sector wise restrictions and limits subject to which a foreign company or individual can invest in a venture in India.
