clarification subsidiaries incorporated to be/ incorporated by companies incorporated outside India cos act 2013

Ministry of Corporate Affairs
A’Wing, Sth Floor, Shastri Bhawan
Dr. R.P. Road, New Delhi110001
Regional Directors,
Registrars of Companies,
Subject: Clarification relating to incorporation of a company i.e.
company Incorporated outside India,

Government has received references seeking clarity about the status
of subsidiaries incorporated/to be incorporated by companies incorporated
outside India. Attention has, in particular, been drawn to the absence of the
deeming provision of sub-section (7) of section 4 of the Companies Act, 1956
in the Companies Act, 2013 (New Act).
The matter has been examined in the Ministry in the light of sections
2(68), 2(7I) and 2@7’l of the New Act and it is clarified that there is no bar in
the new Act for a company incorporated outside India to incorporate a
subsidiary either as a public company or a private company. An existing
company, being a subsidiary of a company incorporated outside India,
registered under the Companies Act, 1956, either as private company or a
public company by virtue of section 4(7) of that Act, will continue as a
private company or public companyr as the case may be, without any
change in the incorporation status of such company.
3. This issues with approval of Competent Authority.
Yours faithfully,
t.! ti
(KM$ N
Asstt. Director
Copy to:
PPS to Secretary
PPS to Addl. Secretary
PS to JS(M)/ PS to JS(B)/ PPS to JS(SP)
Dir(AK) / Dir(AB) / Dir(Nc)/ Dir(PS)


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