Impact of Companies Act, 2013 on the Foreign Companies having a Place of Business in India

The much awaited Companies Act, 2013 (“New Act”) has finally been notified to replace most of the provisions of the Companies Act, 1956 (“Old Act”). The economic scenario globally has undergone major transformation and structural changes and promulgation of the New Act is a step towards globalization and is a successful attempt to meet the changing environment and liberalization. The New Act is progressive and futuristic as it duly envisages the technological and legal developments. The New Act aims to:
Mr. Pankaj Singla
Sr. Associate
+919971508320
pankaj@indiacp.com
  • revise and modify the Companies Act, 1956 in consonance with the changes in the national and international economy.
  • bring about compactness by deleting the provisions that had become redundant over time and by regrouping the scattered provisions relating to specific subjects; 
  • re-write various provisions of the Old Act to enable easy interpretation; 
  • delink the procedural aspects from the substantive law and provide greater flexibility in rule making to enable adaptation to the changing economic and technical environment; and, 
  • inculcate the culture of corporate governance in the Indian corporate world. 
With these objectives the New Act seeks to bring various changes for the businesses, promoters, stakeholders, creditors, directors, the law enforcers and the society at large. Different sections of the corporate world will be affected in their own way with the New Act. This Note highlights the impact of the New Act on foreign companies having a place of business in India.

This article is originally posted on our monthly newsletter “Indo Japan Trade and Investment Bulletin-March 2014” and the following points have been discussed thoroughly:

  • Entry strategy for Foreign Investors in India
  • Set up as an Indian Company
  • Set up as a Foreign Company
  • Definition of Foreign Company
  • Compliances for Foreign Company
  • Accounts of Foreign Companies
  • Display of Name of Foreign Companies
  • Service on Foreign Company
  • Punishment for Contravention
  • Impact of change in definition of Foreign Companies

    Comments

    Post a Comment

    Popular posts from this blog

    Leaves & Holidays under Indian Labour & Employment Laws

    Image
    Holidays and Leaves of workers in India are governed principally by the Factory Act, 1948 and state shops and establishment acts. Weekend Holidays Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com In India, the law prescribes maximum number of hours a week a worker may not be employed beyond. An adult worker shall not be employed for more than 48 (forty eight) hours in a week and not more than 9 (nine) hours in a day. Weekly holiday is compulsory as per the Factories Act. First day of the week i.e. Sunday shall be a weekly holiday. The employer has to make sure that no worker works more than 10 days without a rest day of 24 hours. Therefore, if the worker is asked to work on weekly
    Click to read more »

    Work Hours and Overtime under the Factory Act, 1948 and Shops & Establishment Act

    Image
    India has two major laws concerning working hours of workers i.e. the Factory Act, 1948 and Shops & Establishment Act. The regulations related to the working hours can be separated into four broad categories that help demarcate the dimensions of the discussion. Working Hours for Factory Workers; I. Employment of Adults: Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com An adult worker shall not be employed for more than 48 (forty eight) hours in a week and not more than 9 (nine) hours in a day. A compulsory rest of at least half an hour (30 minutes) between each period of work  and such period of work shall not exceed five hours. Total period of work inclusive of rest interval cannot be more than 10.5 hours. The Chief Inspector may by giving a reason in writing  increase the workday time up to twelve hours. According to Minimum Wages Act, 1948 the working day of a worker shall be so arranged that inclusive of the interval of rest it shall not exceed
    Click to read more »

    SEBI's Circulars About Enhancing Liquidity And Curbing Manipulation Regarding Illiquid Scrips

    Image
    SEBI recently has come out with two different circulars in respect to illiquid scrips wherein one circular talks about enhancing liquidity in the illiquid scrips by promoting incentives by stock exchanges on trading in such scrips, another circular aims at curbing manipulations in the illiquid scrips by introducing Periodic Call Auction in illiquid scrips. Ms. Deepika Vijay Sawhney Partner +919818316936 deepika@indiacp.com The definition of illiquid scrips is kept different in both the circulars with the definition being much wider in case of scrips qualifying for Periodic Call Auctions. The provisions of both the circulars are discussed in detail hereunder: 1. Introduction of Liquidity Enhancement Scheme for illiquid scrips in Equity Cash Market by Circular dated February 08, 2013:
    Click to read more »