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Showing posts from April, 2019

Everything About Demat of Shares of Public Company - Series 446

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Impact of “Demetralization of Securities” of Public Limited Company The Ministry of Corporate Affairs in its drive to enhance transparency, investor protection and corporate governance, has notified Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018 on 10 September 2018 effective from 02 nd October, 2018.:- In accordance with the said rules, unlisted public companies need to dematerialize its existing securities and ensure that further issue of securities and transfers are only in dematerialized form.      A.     Dematerialization: Dematerialization is  the process of converting Physical Securities into electronic format.  It should be related to Listing of securities. A Shareholder intending to dematerialize its securities needs to open a Demat account with Depository Participant. Investor Deface and surrenders his Physical Securities and in turn gets Electronic Shares in his Demat Account:      B.     Benefit of Demat

PROCESS INCORPORATION OF FOREIGN SUBSIDIARY / WOS - 451

Process Incorporation of Foreign Subsidiary / WOS Whenever we incorporate a Company in India as ‘Subsidiary” or “Wholly owned Subsidiary (WOS)” of a Company incorporated outside India. Many questions came into notice like: (i)                  what information/ Documents required from foreign Company? (ii)                Whether presence of authorized representative of foreign Company mandatory in India at the time of signing of documents. (iii)                What are the provisions in respect of Notary / Apostil etc. (iv)              Which ID Proofs / Identity proof of foreign subscribers required by the Company etc. etc. Many more questions came into thoughts while incorporation of subsidiary of foreign subsidiary. In this editorial author shall try to clarify all such doubts   / queries in practical approach. Process of incorporation STEP – I: Apply for Name Approval: Before application for name approval, foreign Company has to choose the name