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In my view Companies Act 1956 is superceded by Companies Act 2013.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

Debate on Closing Foreign Subsidiary in India: Companies Act 1956 vs. 2013; Fast Track Exit Preferred Method A discussion on closing a foreign subsidiary in India focused on the applicable legal framework and procedures. Participants debated whether the Companies Act, 1956 or the Companies Act, 2013 should be followed, with some noting that the closure provisions of the 2013 Act were not yet in force. Options for closure included the Fast Track Exit scheme, share transfer, and voluntary winding up, with the Fast Track Exit being the simplest method. Participants agreed on the importance of adhering to the correct legal procedures for a smooth closure process.