TAKEOVER OF AN INDIAN COMPANY BY A FOREIGN COMPANY

[AJIT Tiwary]

Dear Expert,

One of my client is registered in Hongkong/China and a new company incorporated in india. in both of company a person (citizen of india) is a director and shareholder who was NRI last few year but during the financial year 2019-20 is became the resident as per per income tax act,

my question is that during the process of takeover there must be a foreign director and one indian director, now i am confused what will be the procedure, how i proceed because i need to take DPIIT registration.

Thanking you

AI Summary

Foreign takeover requirements: check resident status of directors and DPIIT registration obligations before proceeding with share transfer.
Query concerns whether a change in a common shareholder/director's residential status affects director-composition requirements for a foreign company takeover of an Indian company and what steps are needed for DPIIT registration; respondent sought further factual clarification before advising on compliance, director rules, share transfer mechanics, or DPIIT application.