A foreign company can form a WOS in sectors where 100% foreign direct investment is permitted under the FDI policy. A WOS gives the most flexibility and protection to a foreign investor in India. A WOS can be defined as an entity whose entire share capital is held by foreign corporate bodies. A WOS can be formed either as a private or public company, limited by shares or guarantee, or an unlimited liability company. Considering the various exemptions available to a private company limited by shares (a “private company”) under India’s Companies Act, 1956 (the “Act”), it is recommended that a WOS be established as a private company.
Key Features of WOS :
- In India companies are incorporated and regulated under the provisions of the companies Act, 1956 and are subjected to certain procedural formalities under the Act.
- The personal liability of member is limited to the amount unpaid on their shares
- It can undertake all types of business activities as may be permitted by its charter, which may include marketing, manufacturing, providing services, etc.
- No RBI approval is needed where 100% direct investment is permissible.
- It is treated as domestic company under Indian tax law and is eligible for all the tax deductions and benefits as provided to any other Indian company.
- Individual director are required to obtain DIN (Director Unique Identification Number) from the Ministry of Company Affairs.
- Funding can be in the form of share capital, loans and business operations.
Services required:
- Formation of WOS in accordance with the requirements of Ministry of Corporate Affairs
- Assistance in procuring office spaces
- Obtaining various registrations such as PAN, TAN, ESI / PF, Excise, Service Tax, VAT Registrations, etc.
- Assistance in managing Bank Accounts
- Consultancy on utilization of funds
- Assistance in ECB from overseas bodies and approvals from Indian Authorities
- Payroll Support
- Data Entry Support
- Maintenance of Books of Accounts
- General Advise on various law matters
- Ensuring proper compliance with various statutes
- Preparation and finalization of Balance Sheet and Profit & loss Account
- Tax Planning and management
- Filing returns as required by various applicable statutes
- Representation before Revenue Authority
- Obtaining advance rulings
|
No comments:
Post a Comment