New Registration by Foreign Company

[Varun Arora]

Dear Experts,

Please resolve my query !!

A foreign co. wants to set up a new factory and all directors are foreigners and i want to know that whether they can set up a premises or there will be requirement of Indian director or some surety or something else.

Thanks in advance.

[KASTURI SETHI]

Sh.Varun Arora Ji,

In my view there is no such restriction or conditions mentioned by you.

[Ganeshan Kalyani]

Sir, I agree with the views of Sri Kasturi Sir. Thanks.

[KASTURI SETHI]

Sh. Varun Arora Ji,

Sh.Sanjay Malhotra, CS an expert in this forum is experts in All Acts. You may seek guidance from him also.

[Rajagopalan Ranganathan]

Sir,

Rule 9 of Central Excise Rules, 2002 which governs the procedure for registration does not contain any condition regarding composition of Board of Directors of a company which seeks registration. Therefore there is no requirement of presence of Indian director in the Board to obtain registration under Central Excise Act, 1944 and the rules made thereunder.

[KASTURI SETHI]

It is not a question of Central Excise Act only. What is the requirement of the Company Act , Income Tax Act, VAT, Factory Act , Estate Office etc. ?These are also relevant in this regard.

AI Summary

Board composition: central excise registration does not require an Indian director; other statutes may impose separate requirements. Rule 9 of the Central Excise Rules, 2002 contains no condition on board composition; therefore central excise registration can be obtained without an Indian director. Other statutory regimes-including company law, tax statutes, VAT, factory licensing and estate/property approvals-may separately impose requirements or approvals that should be examined.