Doing Business in India - RSM Austria

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The project is funded by inward remittance from abroad; or The project is funded by a bilateral or multilateral International Finance Agency; or The project has been cleared by an appropriate authority; or A company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or bank in India for the project. The foreign company shall furnish a report to the concerned Regional Office of the RBI under whose jurisdiction the project office is set up comprising the following details: Name and address of the Foreign Company; Particulars of authority awarding the projects/contract; Total amount of contract; Address and tenure of Project Office; Nature of Project Undertaken. Foreign companies having only project office and not engaged in any trading, manufacturing or other commercial activity in India, have to furnish certain mandatory information to the Registrar of Companies in India. 1.6 Partnerships Partnerships are established by a partnership deed, which is registered with the Registrar of Firms. The Indian Partnership Act, 1932 lays down provisions regarding rights and obligations of partners, retirement and admission of partners, dissolution of firm and related aspects. Indian laws prohibit partnerships of more than 20 persons from carrying on any business and partnerships of more than 10 persons for carrying on the business of banking. 1.7 Trusts Trusts are generally established in India for business of mutual fund and for charitable, religious and other non-profitable purposes. There are special provisions relating to taxation of mutual funds and charitable trusts which provide for tax exemption under specified circumstances. 1.8 Limited Liability Partnerships (LLPs) The concept of LLP is new to India and the Limited Liability Partnership Act, 2008 has permitted setting up of LLPs with effect from 1 April 2009. Some of the salient features of an LLP are as under:- LLP is a body corporate having a separate legal entity distinct from its members. LLP has a perpetual succession and any change in partners of LLP will not affect the existence, rights or liabilities of the LLP. 26 DOING BUSINESS IN INDIA
Any individual, body corporates, including LLPs, a foreign LLPs and Indian as well as foreign companies can be partners in LLPs. LLP shall have at least two partners two designated partners who are individuals and at least one of them shall be resident in India. If all the partners of any LLP are bodies corporates or LLPs, they shall nominate their respective individuals to act as designated partners, of whom at least one shall be resident in India. Designated Partner’s are liable for compliance under the Act and in the event of non-compliance will be liable for the penalties. In an LLP, there is no upper limit on maximum number of partners unlike an ordinary partnership firm where the maximum number of partners cannot exceed 20. Every partner of LLP is the agent of the LLP for the purpose of the business of the LLP, but not of other partners. Every designated partner shall obtain a Designated Partner Identification Number (DPIN) which is similar to Director Identification Number (DIN) as provided under the Companies Act, 1956. An obligation of the LLP whether arising in contract or otherwise, shall be solely the obligation of the LLP. The liabilities of the LLP shall be met out of the property of the LLP While the LLP is a separate legal entity, liable to the full extent of its assets, however, the liability of the partners is limited to their agreed contribution in the LLP which may be of tangible or intangible nature or of both tangible and intangible in nature. No partner is liable on account of the independent or unauthorized actions of other partners, thus, allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Registering authority of LLP is the Registrar of Companies under the Companies Act, 1956. The name of an LLP must end with the words “limited liability partnership” or the acronym “LLP”. The mutual rights and duties of partners of an LLP inter se and those of LLP and its partners shall be governed by an agreement between the partners or between LLP and the partners subject to the provisions of the proposed legislation. In the absence of any such agreement, the same shall be governed by Schedule I to the Act. The right of a partner to share profits and losses of the LLP are transferable either wholly or in part. The transfer in such a way shall not DOING BUSINESS IN INDIA 27
Page 1: International global excellence in
Page 4 and 5: Doing business in India
Page 6 and 7: Marine Drive, Mumbai
Page 8 and 9: Contents Hawa Mahal, Jaipur
Page 10 and 11: Education .........................
Page 12 and 13: SIGNIFICANT COMPANY LAW REGULATIONS
Page 14 and 15: ANNEXURE 1 Sectors Prohibited for F
Page 16 and 17: Chapter 1 India - A Profile Golden
Page 18 and 19: 2.2 Language India is a land of man
Page 20 and 21: 5.2 Communication The Indian teleph
Page 22 and 23: 7.5 Public Holidays The statutory p
Page 24 and 25: CHAPTER 2 INDIAN BUSINESS AND INVES
Page 26 and 27: This resulted in a fall in the Bomb
Page 28 and 29: 4.3.3 Designs After expiry of three
Page 30 and 31: non-banking finance activities viz.
Page 32 and 33: trading in derivative based on BSE
Page 34 and 35: same as those where concessional fi
Page 36 and 37: 10.3 Low Research and Development C
Page 38 and 39: CHAPTER 3 BUSINESS ENTITIES 1.0 FOR
Page 40 and 41: Sr. No. Criteria Requirements 1 Tra
Page 44 and 45: cause the disassociation of the par
Page 46 and 47: 2.1.2 MOA 2.1.3 AOA Companies for r
Page 48 and 49: paid up equity capital can be less
Page 50 and 51: The requirements for public and pri
Page 52 and 53: 3.0. STATUTORY REQUIREMENTS FOR COM
Page 54 and 55: 3.4 Online Filing System Ministry o
Page 56 and 57: Section Nature of default 168 Defau
Page 58 and 59: 4.0 SIGNIFICANT COMPANY LAW REGULAT
Page 60 and 61: 4.7 Audit Committees For better cor
Page 62 and 63: The meetings of the board are requi
Page 64 and 65: Chapter 4 Human Resources Kathakali
Page 66 and 67: Employee benefit What is it? Applic
Page 68 and 69: Employee benefit D e p o s i t L i
Page 70 and 71: 2.5 The Equal Remuneration Act, 197
Page 72 and 73: The Factories Act safeguards agains
Page 74 and 75: CHAPTER 5 FOREIGN INVESTMENT IN IND
Page 76 and 77: 2.3 Prohibition on investments 2.3.
Page 78 and 79: ii. Subject to compliance with the
Page 80 and 81: ii. iii. iv. The NRI investor has t
Page 82 and 83: ii. On repatriation basis An NRI ca
Page 84 and 85: Indian company can issue ESOPs to e
Page 86 and 87: ii. iii. iv. The foreign equity aft
Page 88 and 89: vi. Branch Offices have to submit A
Page 90 and 91: ii. ECB up to US$ 20 million or equ
Page 92 and 93:
3.2 Approval Route 3.2.1 Eligible B
Page 94 and 95:
3.2.6 End Use not permitted i. Util
Page 96 and 97:
issued by Reserve Bank from time to
Page 98 and 99:
Sr. No. Sector/Activity FDI Cap / E
Page 100 and 101:
Sr. No. II C POWER Sector/Activity
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Sr. No. 29. Sector/Activity Telecom
Page 108 and 109:
Chapter 6 Taxation System India Gat
Page 110 and 111:
Entity Domestic Company Financial y
Page 112 and 113:
**** Mutual funds, other than equit
Page 114 and 115:
interest deductible is restricted t
Page 116 and 117:
2.4 Tax Relief In order to encourag
Page 118 and 119:
Section Details of Exemption / Dedu
Page 120 and 121:
Section 35 DDA 54G 54GA 54EC 10(34)
Page 122 and 123:
Sr. No. Nature of activity and loca
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Sr. No. xviii Nature of activity an
Page 130 and 131:
No deduction under 80IA, 80IB, 80IA
Page 132 and 133:
Tax is payable in advance on income
Page 134 and 135:
3.1.2 Other Non-corporate Entities
Page 136 and 137:
the Finance Act 2010, 'bullion' is
Page 138 and 139:
Rs. 40,00,000. The scheme is applic
Page 140 and 141:
4.5 Income of Offshore Funds Income
Page 142 and 143:
7.3 Advance Rulings The Indian gove
Page 144 and 145:
9.0 INDIRECT TAXES 9.1 Goods and Se
Page 146 and 147:
on goods manufactured and vice vers
Page 148 and 149:
Annexure I Double Taxation Avoidanc
Page 150 and 151:
Sr. No. Country Dividend [Note 1] T
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
ANNEXURE II: TAX DEDUCTION AT SOURC
Page 158 and 159:
NOTES 142 DOING BUSINESS IN INDIA
Page 160 and 161:
Page 162 and 163:
Page 164:
RSM International Executive Office,
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