Overseas CorporateBody(OCB)

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Dear Professionals,

Facts of query;

There is an Indian company registered under the Indian Companies Act 1956  named XYZ P. Ltd in which 65 percent shares is hold by an NRI. 

However, such NRI shareholder is not the director of the said XYZ P. LTD. 

Further, XYZ P. Ltd. owns two Wholly Owned Subsidiaries Companies (registered under the Indian Companies Act 1956).

Required your kind professional assistance wrt the following.

1. Whether XYZ P. Ltd. would tantamount to become an Overseas CorporateBody(OCB) ? And if yes, under which provision of which Act (say FEMA or other applicable law in India)?

2. If yes than what kind of compliance to be filed by company and to whom ?

3. In case this is not a ocb then whether there are any other compliance which must be followed by the company?

AI Summary

Does XYZ P. Ltd Qualify as an Overseas Corporate Body Under FEMA? Exploring Compliance Obligations for NRI-Owned Firms. An Indian company, XYZ P. Ltd, is majority-owned (65%) by a Non-Resident Indian (NRI) but the NRI is not a director. XYZ P. Ltd also has two wholly-owned subsidiaries. The query seeks professional advice on whether XYZ P. Ltd qualifies as an Overseas Corporate Body (OCB) under Indian law, specifically under the Foreign Exchange Management Act (FEMA) or any other applicable legislation. It also inquires about the necessary compliance requirements if XYZ P. Ltd is considered an OCB or if other compliance obligations exist if it is not classified as such. The response asks if the issue has been clarified.