A rights issue is distinguished by the fact that it is limited to the company’s current shareholders. It could be a public firm that is listed or unlisted. If the Offer allows it, the shareholders can relinquish their rights in favor of other shareholders.
The RBI has introduced a Single Master Form (“SMF”) to integrate the reporting structure of various types of Foreign Investment in India.
An authorised person under FEMA is an authorised dealer, money changer, off-shore banking unit, or any other person for the time being authorised under sub-section (1) of Section 10 of the Act to deal in foreign exchange or foreign securities. There are mainly 4 categories of authorised persons under FEMA and for an individual to become an authorised person one has to submit the necessary applications along with all the relevant required documents to the Reserve Bank of India.
The Reserve Bank of India, on 5th January 2021 introduced a legal entity identifier (LEI) for the transactions of and above 50 crores or INR 500 million through entities (non-individuals) utilizing Reserve Bank-run Centralised Payment Systems i.e. RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer).
Hon’ble Supreme court, in the case of the Bar Council of India vs A.K. Balaji & Ors. vide intermine order, has directed RBI not to grant any permission to any foreign law firm for opening of Liaison Office (LO) in India after date of issuance of such order. Hence, RBI issued directions vide Notification No. RBI/2015-16/215 dated 29th October, 2015 that no foreign law firm shall be permitted to open any LO in India till further orders/notification in this regard.
Vide Finance Act, 2020, Ministry of Finance amended the provisions related to Equalisation levy and has extended the scope of same to cover non-resident e-commerce operators operating in India without having any permanent establishment in India such as Zoom, netflix, ebay etc. The amendment was given effect from 1st April, 2020.
Applicability of provisions of FEMA are based on the residential status of a person, i.e., a person resident of India has more liberty under FEMA as compared to a NRI as per FEMA or person resident outside India. Therefore, to check the extent of applicability of FEMA provisions, it is important to first check the residential status as per FEMA for a person.
Various foreign entities are opting for various methods to set up their entities in India such as set-up a subsidiary in India with Foreign Company as holding, Project Office, Liasoning Office, Branch Office, Direct Investment in Indian Companies etc.
Provisions related closure of Project Office/Liaison Office/Branch Office are regulated by Foreign Exchange management Act read with FEM (Establishment in India of Branch or Office or Liaison office or a project office or any other place of business) Regulations, 2016 and Master Directions No. 10/2015-16 dated 1st Jan, 2016.
Permanent Account Number (“PAN”) issued by the Income Tax Department is a mandatory unique number required for the purpose of all Income tax related compliance in India. PAN also acts as an Identity proof of Indian residents. However, persons who are non-residents and are having presence in India for limited purposes may also need to apply for PAN in certain cases. Permanent Account Number or PAN is mandatory for all the persons including NRI who are required to file their Income tax return (“ITR”) under Income Tax Act, 1961 or who wish to carry out financial functions in India. Therefore,
Want to talk to us
Leave your Name, email, Phone number along with what you are looking for in message box or you can call us at 011-41715118
Keep up to date — get updates with latest topics. Signup for our newsletter today.
We serve on FDI advisory, cross-border accounting, International tax planning and Management consulting needs of our overseas clients all over the world.
Corporate Office: 601, 6th Floor, GMIT Park, Sector 142, Noida Exp Way, Noida – 201305
Registered Office: 44, Backary Portion, 2nd Floor, Regal Building, New Delhi 110001
Landline: 0120-4415477-78
info@vjmglobal.com
+91 9891576441, 9213397070, 9911887030
Mon – Fri: 09:00am – 06:00pm
Closed on Weekends
V J M & Associates LLP