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Companies Incorporated Outside India Video Lecture | Corporate & Other Laws for CA Intermediate

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FAQs on Companies Incorporated Outside India Video Lecture - Corporate & Other Laws for CA Intermediate

1. What are the key requirements for a company incorporated outside India to open a branch office in India?
Ans. A company incorporated outside India must meet certain criteria, such as having a good financial track record, obtaining approval from the Reserve Bank of India (RBI), and appointing a resident authorized representative in India to open a branch office in the country.
2. Is it mandatory for a company incorporated outside India to register with the Registrar of Companies (ROC) in India?
Ans. Yes, it is mandatory for a company incorporated outside India to register with the ROC in India within 30 days of establishing a place of business in the country. Failure to do so can result in penalties and legal repercussions.
3. What are the tax implications for a company incorporated outside India operating in India through a branch office?
Ans. A branch office of a company incorporated outside India is treated as a foreign entity in India, and it is subject to taxation under the Income Tax Act, 1961. The branch office is required to pay taxes on its income earned in India at the applicable rates.
4. Can a company incorporated outside India convert its branch office in India into a subsidiary company?
Ans. Yes, a company incorporated outside India can convert its branch office in India into a subsidiary company by complying with the provisions of the Companies Act, 2013. This process involves obtaining approval from the RBI and fulfilling other legal formalities.
5. What are the restrictions imposed on a company incorporated outside India operating a branch office in India?
Ans. A company incorporated outside India operating a branch office in India is subject to certain restrictions, such as limitations on the activities it can undertake, repatriation of profits, and compliance with foreign exchange regulations. It must adhere to the rules and regulations set by the RBI and other regulatory authorities.
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