1. Governing Framework under FEMA and RBI Foreign Direct Investment (FDI) in Public Limited Companies is regulated under the Foreign Exchange Management Act (FEMA), 1999, and administered by the Reserve Bank of India (RBI). FDI is also guided by the FDI Policy issued...
1. Yes, Repatriation of Funds Is Permitted under FEMA A Public Limited Company incorporated in India can repatriate funds abroad, subject to compliance with the Foreign Exchange Management Act (FEMA), 1999, and guidelines issued by the Reserve Bank of India (RBI)....
1. Yes, Public Limited Companies Can Operate Across India A Public Limited Company registered under the Companies Act, 201,3 has the legal right to operate in multiple states within India. It is considered a separate legal entity and can carry on business across...
1. Yes, Public Limited Companies Can Establish Foreign Offices A Public Limited Company incorporated in India is permitted to set up offices abroad for business expansion, marketing, sales, research, or representative purposes. Such foreign establishments may include...
1. Definition and Legal Framework Private Placement refers to the issue of shares or securities by a Public Limited Company to a selected group of investors (not more than 200 in a financial year, excluding QIBs and ESOP allottees), rather than through a public offer....
1. Definition under the Companies Act, 2013 A Special Resolution is a resolution passed by the shareholders of a Public Limited Company that requires a higher threshold of approval. As per Section 114(2) of the Companies Act, 2013, a resolution is considered “special”...
1. Voting Rights Equity Shares: Carry voting rights on all company matters and allow shareholders to participate in key decisions at general meetings. Preference Shares: Usually do not carry voting rights, except in limited situations like when dividend payments are...
1. Definition of ESOP (Employee Stock Option Plan) ESOP (Employee Stock Option Plan) is a scheme under which a company grants its employees the right to purchase a specified number of shares at a pre-determined price, after a certain period (called the vesting...
1. Unified Indirect Tax Structure GST (Goods and Services Tax) replaced multiple indirect taxes like excise duty, VAT, service tax, and CST, creating a single unified tax system across India. This simplified tax compliance for Public Limited Companies operating in...
1. Domestic Public Limited Companies (Without Exemptions) Under Section 115BAA of the Income Tax Act, domestic Public Limited Companies can opt for a concessional tax rate of 22%. Applicable only if the company does not claim any exemptions or incentives. Effective...