Overseas CorporateBody(OCB)

[Guest]

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?

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Overseas Corporate Body classification queried for a majority non resident shareholding, seeking applicable legal basis and compliance. Whether an Indian company becomes an Overseas Corporate Body is queried where a non resident Indian holds 65% of equity but is not a director, and where that company owns two wholly owned domestic subsidiaries; the questions seek the legal provision(s) governing such classification and the specific compliance and filing obligations if the company is treated as an Overseas Corporate Body or, alternatively, what compliance applies if it is not.