Applicability of Companies Act, 2013 on Indian Subsidiary of Companies Incorporated Outside India
The much awaited Companies Act, 2013 ('New Act') and Rules thereunder have finally been notified by the Ministry of Corporate Affairs, Government of India, to replace major parts of the Companies Act, 1956 ('Old Act'). With the enactment of the New Act, the corporate legal environment in India has acquired a more stringent face. It demands few cumbersome compliances and creates ambiguity in certain areas but its virtues outweigh the problems it brings. As for foreign investors, the New Act has brought immense relief. Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com If a company incorporated outside India intends to carry on its business in India by incorporating a subsidiary company in the country, then naturally its subsidiary company will have to comply with the Indian company law in addition to other local laws. As per the Old as well as New Act, a private subsidiary of a public company is deemed as a public company and is therefore re...