Closing of Foreign Subsidiary company In India

[anu malve]

We want to close foreign subsidiary company in India. What is the procedure and related forms that need to be filed with MCA?

[DR.MARIAPPAN GOVINDARAJAN]

You have to comply with the provisions relating to voluntary closure under the Companies Act, 1956.

[Ganeshan Kalyani]

In my view Companies Act 1956 is superceded by Companies Act 2013.

[DR.MARIAPPAN GOVINDARAJAN]

The provisions relating to closure/winding up of the company in Companies Act, 2013 have not yet come into force. As such the Companies Act, 1956 is to be followed.

[Ganeshan Kalyani]

Thanks Sir. Noted.

[Mahir S]

Sir,

To the best of my knowledge, there are 3 avenues for closure of foreign subsidiary in India. They are as follows :

1. Fast track exit scheme (FTE),
2. transfer of shares of company and
3. voluntary winding up of company.

The procedure under the first one above is more easier compared to the second and third avenues.

[DR.MARIAPPAN GOVINDARAJAN]

I agree with the views of Shri S. Mahir

AI Summary

Fast Track Exit offers the simplest route to close a foreign subsidiary in India, alongside share transfer and winding up. Closing a foreign subsidiary in India may proceed by three principal routes: Fast Track Exit, transfer of shares, or voluntary winding up. Fast Track Exit is the simplest of the three. For voluntary closure, comply with the procedural provisions of the Companies Act currently in force and complete the requisite filings with the Ministry of Corporate Affairs as applicable.