by Audit Analyst | Dec 3, 2025 | Subsidiary
Eligibility of Subsidiaries Yes, an Indian subsidiary—whether wholly-owned or partially foreign-owned—is eligible to apply for government incentives, provided it meets the conditions of the specific scheme. Incentives are not restricted by ownership status but by...
by Audit Analyst | Dec 3, 2025 | Subsidiary
Definition and Status Recognition A dormant subsidiary is a company that has no significant accounting transactions and is not actively carrying on business. Under Section 455 of the Companies Act, 2013, such a company can apply for dormant status to reduce compliance...
by Audit Analyst | Dec 3, 2025 | Subsidiary
Permissibility Under Law Yes, a subsidiary can be acquired by another Indian company as per the provisions of the Companies Act, 2013, and relevant SEBI, FEMA, and Income Tax laws. The acquisition may be of 100% or partial shareholding, depending on the commercial...
by Audit Analyst | Dec 3, 2025 | Subsidiary
Governing Provisions The resignation of a foreign director is governed by the Companies Act, 2013, specifically Section 168, along with the company’s Articles of Association (AOA). The same rules apply to both resident and non-resident directors, subject to additional...
by Audit Analyst | Dec 3, 2025 | Subsidiary
Governing Laws and Applicability Transfer of shares in subsidiaries is regulated under the Companies Act, 2013, Articles of Association (AOA) of the company, and where applicable, Foreign Exchange Management Act (FEMA) for foreign shareholders. The nature of the...
