Formation of subsidiary company

[Gopalarathnam Muralidharan]

Dear Sir

a) My client is Indian Private limited co., dealing in Trading of plastic granules imported from abroad as well as in India

b) Its shares to the extent of 99% are held by foreign national.

c) The foreign national is a director in a Dubai based company which also deals in trading of plastic granules.

d) The foreign national got necessary approval from RBI for infusion of capital

e) Now he wants to transfer his shares in favour of Dubai based company so as to make Indian Private Limited co., as wholly owned subsidiary of Dubai co.

Now my question is whether the foreign national can transfer his shares in favour of Dubai co., if so what are the procedures to be complied with

Regards

G Muralidharan

AI Summary

Foreign National Plans Share Transfer to Make Indian Firm a Wholly-Owned Dubai Subsidiary; Seeks Compliance Guidance An Indian private limited company, primarily trading in plastic granules, is majority-owned by a foreign national who also directs a Dubai-based company in the same industry. The foreign national, having received approval from the Reserve Bank of India for capital infusion, intends to transfer his shares to the Dubai company, making the Indian company a wholly-owned subsidiary. The query seeks guidance on the procedures for this share transfer. The response advises consulting a Practising Company Secretary or Chartered Accountant for detailed procedural compliance.