Legal Permissibility Yes, a subsidiary incorporated in India can be listed on a foreign stock exchange, but only through specific routes permitted by Indian law. Direct listing of Indian companies on foreign exchanges is not yet fully operational but is expected to be...
Establishing Governance Structure The subsidiary must constitute a Board of Directors with clearly defined roles, including independent, executive, and non-executive directors if applicable. Governance roles and duties should be guided by the Companies Act, 2013, and...
Applicability Under Law Subsidiaries in India are required to establish and maintain adequate internal financial controls as mandated under Section 134(5)(e) and Section 177 of the Companies Act, 2013. These controls ensure the reliability of financial reporting,...
Board Composition and Appointment The parent company typically exercises control by appointing the Board of Directors of the subsidiary. It may nominate majority of directors, including the Managing Director or Whole-time Director, to ensure alignment with its...
Permissibility Under Law Yes, a subsidiary in India can repatriate royalty payments to its foreign parent company for licensed use of intellectual property (IP) such as trademarks, patents, know-how, and technical services. Such payments are allowed under the Foreign...
