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Section 8 Company are those businesses which are registered under section 8 of the Companies Act, 2013, which is established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', any other income is utilized for promoting the objects of the company only and no dividend is paid to its members. In other words, Section 8 Company Registration is done under the Companies Act, 2013 for charitable or not-for-profit purposes.A Section 8 company is registered under the central government (MCA) and others trust and society are registered under the state government. Incorporation of Section 8 company has many advantages as compared to trust and societies as they have higher credibility amongst donors, government departments and other stakeholders.
Q1. What is an Indian Subsidiary?
Ans. An Indian subsidiary is defined as the one where the shares of the company are in part owned by another company. It is established by those foreign entrepreneurs who do not want to go through the process of establishing the foreign unit but instead are looking for a hassle-free investment scheme.
Q2. What are the documents required to establish an Indian Subsidiary?
Ans. The documents required for the registration of an Indian Subsidiary are: 1. Photo id proof 2. Parent company seal 3. Address proof of business premises 4. Written and signed consent to establish the Indian subsidiary 5. PAN and passport
Q3. Who is eligible to make investment in India as an Indian subsidiary?
Ans. Any company, entity, organization or any other firm can invest in Indian subcontinent in the form of Indian subsidiary.
Q4. Can an individual invest in the foreign subsidy?
Ans. Yes, an Indian citizen can also invest in a foreign subsidy.
Q5. What are the benefits of investing as an Indian Subsidiary?
Ans. There are numerous advantages in investing as an Indian Subsidiary: 1. Easy investment 2. FDI inflows 3. Increase in brand value
Q6. What are the disadvantages of an Indian Subsidiary?
Ans. There are numerous disadvantages of an Indian subsidiary: 1. Limited control 2. Time consuming 3. Too much legal paperwork
Q7. Can investment be made in any firm by foreign entities?
Ans. Yes, investment can be made in any firm or business by foreign entities
Q8. Does RBI (Reserve Bank of India) monitors this investment?
Ans. Yes, the RBI does monitor the investments done to establish an Indian subsidiary because it comes under the FDI (Foreign Direct Investment) in the Indian subcontinent.
Q9. Is it advisable to invest as a subsidiary?
Ans. Yes, it is advisable to get converted into a subsidiary because subsidiaries are established by large MNCs which have huge brand value and are leaders in their field.
Q10. How much investment can be done in an Indian firm by a foreign entity?
Ans. At present, the restriction is limited to power projects such as nuclear energy or the projects which are of national security.
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We at GSB Taxation believe in high quality and exceptional customer service but most importantly, we believe helping others should be the primary purpose of a good service agency. So, we strive to give the best services at the most affordable prices. We’ve come a long way, so we know exactly which direction to take when supplying you with high quality yet budget-friendly services. Whether it is a Private Limited Company Registration, LLP Registration, One Person Company Registration or an FSSAI License Registration, we got it covered. We know that it’s hard for a person to stand on its own. He/she have to think twice before taking any step. Therefore, GSB Taxation offers all of these and other major services with excellent and friendly support in order to do the best for you. We are here to help you in nourishing your business. Trust our dedicated team get ready to live your dreams with us.