Transfer of shares between two residents (of India) involves payment of consideration (buyer to the seller) and execution of share transfer deed. Share transfer deed to be duly stamped @ 0.25% of the consideration amount. When the transaction is between a resident and a non-resident, there are regulations concerning inward…

The choice of business form entirely depends on the end goals to be achieved. We have earlier dealt with the topic India-entry-basics. A foreign entity planning to enter into Indian markets has options such as to open a Liaison office/Branch office or to establish a Wholly Owned Subsidiary.  Following analysis will…

A. What is a Liaison office? Liaison office is an office set up by foreign entity (Parent Company) in India which acts as a channel of communication between the principal place of business or Head Office of the foreign entity (Parent Company). Liaison office is not allowed to earn income…

A. What is a Branch office? The Branch office is setup by a foreign company (Parent Company) in India to carry out the branch activity for its business. As opposed to Liaison office, the branch office of the foreign company is allowed to earn revenue from the Indian Branch office.…

FLA (Foreign Liabilities and Asset) Return under FEMA (Foreign Exchange and Management Act, 1999) is Annual Return required to be submitted by all the India resident companies, Partnership firms, SEBI registered Alternative Investment Funds (AIFs), Public Private Partnerships (PPP), Branches or Trustees which have received FDI and/ or made overseas…

Introduction. During the last 10-15 years, despite of enjoying the demographic dividend and abundance of resources, many projects were stalled thereby reducing the growth of the economy and loss of jobs. The case of Vedanta Resources in Orissa can be quoted as an example. The growth was plagued due to…

With the increasing pace of paperless governance, Reserve Bank of India (RBI) allowed the facility to file form FC-TRS electronically on e-Biz platform vide A.P. (DIR Series) Circular No. 9 dated August 21, 2015. Filing of form FC-TRS electronically through e-biz portal is mandated discontinuing the physical filing w.e.f. February 8, 2016 vide A.P. (DIR Series) Circular…

A person must satisfy the following 2 conditions to qualify as a NRI: He is a person resident outside India, and He is a citizen of India or is an ‘Overseas Citizen of India’ cardholder. As per the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside…

The Government of India (GoI) in a meeting held on 20th June, 2016, chaired by Prime Minister Narendra Modi, took radical steps to boost FDI in the Indian economy. Since last 2 years the Government has brought major reforms in Defence sector, Construction Development, Insurance, Pension Sector, Broadcasting sector etc.…

Limited Liability Partnership or LLP was introduced by Indian government though Limited Liability Partnership Act, 2008. LLP is an entity structure which is a mixture of private limited company and a partnership firm. But unlike the latter it is a separate legal entity and limits the liability of its partners.…