#Selling FDI shares in India

[samarthcapital]

How Can NRIs Invest in India With NRI Services?

Non-resident Indians (NRIs) hold a unique position in the Indian economy. They are not only a valuable source of foreign exchange, but also a potential force driving the country's growth story. Navigating investments in India can be a bit confusing for NRIs. Understanding where and how to invest amidst regulations, tax implications, and diverse options can feel tricky, which is why, NRIs willing to invest in India can rely on NRI services, which make investing easier as per the rules set by RBI and SEBI under the Foreign Exchange Management Act (FEMA).

Where Can NRIs Invest in India?

NRI services encompass a range of financial solutions tailored specifically for non-resident Indians seeking to invest, manage their wealth, and connect with their homeland. It is vital to understand where NRIs can invest in India.

Equities

NRIs can invest directly in Indian stocks through the Portfolio Investment Scheme (PIS) by the Reserve Bank of India (RBI).

Mutual Funds

Investing in Mutual Funds offers various choices like Equity, Balanced, Bond, and Liquid Funds. Unlike direct equities, NRIs investing in Mutual Funds do not require PIS permissions from RBI. However, some restrictions may apply to NRIs from the US and Canada due to reporting regulations.

Government Securities

NRIs can invest in government securities on NRE and NRO basis, each with different tax implications based on the type of investment.

Fixed Deposits

Investment opportunities in fixed deposits are available for NRIs through Banks or Non-Banking Financial Companies (NBFCs), each with its tax implications based on the NRE (Non-Resident External) or NRO (Non-Resident Ordinary) basis. NRIs can also invest in Foreign Currency Non-Resident (FCNR) fixed deposits.

Real Estate

NRIs can invest in real estate except for certain property types like agricultural land, farmland, or plantations.

National Pension Scheme (NPS)

NPS, a retirement savings plan, offers tax benefits. Contributions can be made from NRE or NRO accounts, but the pension must be received in India.

Portfolio Investment Scheme (PIS)

PIS allows NRIs to trade in shares and debentures through a designated bank account. It helps regulate NRI holdings in Indian companies, preventing breaches of set limits.

How Experts Simplify NRI Services?

Experts like Samarth Capital simplify the investment process by providing guidance, ensuring NRIs make informed decisions aligned with their goals. Here’s how they make investing easy for NRIs.

Helping open NRE / NRO savings and PIS bank accounts.

Setting up brokerage and demat accounts for trade.

Monitoring your portfolio regularly.

Engaging tax consultants for compliance.

Understanding Taxes and Rules

For NRIs, it's crucial to understand tax implications in India and their country of residence. Compliance with the Double Tax Avoidance Agreement (DTAA) and filing taxes in India if taxable income exceeds the exemption limit is important.

Wrapping Up

Investing in India as an NRI offers diverse opportunities. With guidance and a grasp of regulations, NRIs can navigate this landscape effectively and make the most of available avenues. Samarth Capital, not only facilitates NRI investments but also helps foreigners invest in India with FPI services. So, whether you're an NRI or a foreigner, investment in India isn't a far-fetched dream anymore.

[alishajoy059]

Understanding Form FC-TRS: Reporting Requirements for Foreign Investments in India

Form FC-TRS (Foreign Currency-Transfer of Shares) is a mandatory reporting form for recording the transfer of shares between residents and non-residents in India. The Reserve Bank of India (RBI) mandates this form to monitor and regulate foreign investments in Indian companies. This article delves into the reporting requirements for Form FC-TRS, its importance, and the steps involved in the submission process.

What is Form FC-TRS?

Form FC-TRS is used to report the transfer of shares or convertible debentures of an Indian company from:

A resident to a non-resident, and

A non-resident to a resident.

This form helps the RBI track and regulate foreign direct investments (FDI) and ensures compliance with the Foreign Exchange Management Act (FEMA), 1999.

Importance of Form FC-TRS

The submission of Form FC-TRS is crucial for several reasons:

Regulatory Compliance: Ensures adherence to FEMA regulations.

Transparency and Monitoring: Allows RBI to monitor foreign investments and capital inflows/outflows.

Legal Validation: Provides legal recognition to the transfer of shares between residents and non-residents.

When to File Form FC-TRS?

Form FC-TRS must be filed in the following scenarios:

Transfer of Shares from Resident to Non-Resident: When an Indian resident sells shares or convertible debentures to a non-resident.

Transfer of Shares from Non-Resident to Resident: When a non-resident sells shares or convertible debentures to an Indian resident.

Timeline for Submission

The form must be submitted within 60 days of receiving the consideration for the transfer of shares.

Steps to File Form FC-TRS

Preparation of Documents: Gather necessary documents, including share purchase agreement, share transfer form, KYC documents of the buyer and seller, FIRC (Foreign Inward Remittance Certificate) or debit certificate, and valuation certificate.

Filling the Form: Access the Form FC-TRS through the RBI's Single Master Form (SMF) available on the Foreign Investment Reporting and Management System (FIRMS) portal.

Submission of Form: Log in to the FIRMS portal, fill in the required details, and upload the necessary documents.

Verification and Approval: The AD Bank (Authorized Dealer Bank) verifies the form and documents. Upon satisfactory verification, the AD Bank forwards the form to the RBI for approval.

Documents Required for Filing Form FC-TRS

Share purchase agreement.

Share transfer form (Form SH-4).

KYC documents of both buyer and seller.

FIRC or debit certificate as proof of payment.

Valuation certificate from a Chartered Accountant.

Common Issues and Tips for Filing Form FC-TRS

Accurate Information: Ensure all details provided in the form are accurate and match the supporting documents.

Timely Submission: Adhere to the 60-day submission timeline to avoid penalties.

Complete Documentation: Make sure all required documents are complete and correctly uploaded.

Professional Assistance: Consider seeking help from professionals or consultants to ensure compliance and avoid errors.

Conclusion

Filing Form FC-TRS is a critical requirement for documenting the transfer of shares between residents and non-residents in India. By understanding the reporting requirements, necessary documentation, and submission process, companies can ensure compliance with FEMA regulations and facilitate smooth foreign investment transactions. Timely and accurate submission of Form FC-TRS not only ensures regulatory adherence but also fosters transparency and trust in cross-border investment activities.

FAQs

What is the penalty for late submission of Form FC-TRS? The RBI may impose penalties for late submission, which can vary based on the delay duration and transaction value.

Can Form FC-TRS be filed manually? No, Form FC-TRS must be filed online through the FIRMS portal.

Who is responsible for filing Form FC-TRS? The responsibility for filing typically lies with the resident transferor or transferee, depending on the nature of the transaction.

[mylawyeradvise]

Top 10 FAQs on Exit Route for Foreign Investors for their Struck Investments in Indian Companies: Best Corporate Lawyer Advice in Delhi NCR

1. What are the common exit routes available to foreign investors in struck investments in India companies? Answer: Common exit routes include initial public offerings (IPOs), strategic sales, secondary market transactions, buybacks, mergers and acquisitions (M&A), and open market sales.

2. Can foreign investors exit their struck investments through an IPO? Answer: Yes, foreign investors can participate in IPOs, allowing them to sell their shares to the public and exit their investments.

3. Is it possible for foreign investors to sell their struck investments to another company through a strategic sale? Answer: Yes, foreign investors can explore strategic sale opportunities where they sell their stake to another company or investor who sees value in the business.

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[novelpacking-blog]

Packaging Quality And Improvements Summit 2019

With the increase in the analysis and improvement of the sphere, it has also contributed towards the safe consumption of the food product. Packaging has the power to cease the product deterioration, prolong its shelf life as well as enhance the quality and security packaging films manufacturers & supplier. Any assessment of the meals packaging’s impression on the surroundings should consider the constructive advantages of decreased waste throughout the provision chain. Packaging reduces waste by extending the shelf lifetime of the product and thereby prolonging its usability.

There are many eco-labels and government regulations to reduce the impression of harmful merchandise on the surroundings. The emergence of bio-based and biodegradable movies is the first factor that can gasoline the expansion of the worldwide flexible packaging market. Metalized Films results in be oxygen and water transmission resistant, thereby resulting in market growth. Moreover, the demand for small packs has given an impetus to the versatile pouch section, which can be used in small material packaging.

Technological innovation, sustainability and attractive economics are the reasons for the outstanding progress of versatile packaging. Designers and artists who can innovate and design enticing eye-catching packaging that stands out on the shelf are always in demand. It is used for several purposes like innovative and sustainable designing and carrying info that makes engaging display and facilitating transportation and storing of products. It should shield the products from all kinds of contamination, different sorts of hazards and damages i.e., mechanical, physical and environmental, stress throughout transportation, and storage. When we discuss Packaging design each as practical design and graphical is a crucial a half of the packaging system which incorporates printing as an integral a part of the system.

However, fluctuations in crude oil costs, which have an result on polymers and resins' production, are prone to hamper the flexographic segment growth. Rotogravure printing is extensively used to print packaging products similar to polythene packs, soap wrappers, bread wrappers, milk pouches, and other supplies. Flexible bags and sacks are observing application in healthcare, private care, and pet meals. Although pouches' demand is growing as diverse industries adopt them, plastic baggage' volume is extra substantial. In 2020, several companies started producing bioplastic luggage as a outcome of demand for sustainable packaging.

The press that prints with solvent-based inks also comes affixed with the distinctive function of Electrical Heating. Suitable for slim internet software, ROTOFLEX STANMAS 20 is a mechanical line shaft that may stretch upto 8 colours configuration. UFlex developed this machine with technical inputs from MRG Grafomac of Italy and its inhouse design staff.

Based on analysis and literature evaluate could be concluded that biodegradable packaging has a brilliant future in the meals business. There is little doubt that the production of and demand for this packaging more to increase partly because of improved properties of bio- degradable packaging and partly as a outcome of decrease of its value, which is now unacceptable in relation to the worth of other packaging supplies. Additionally, revolutionary sensor expertise can contribute to minimizing materials consumption within the manufacture of flexible packaging. BST eltromat will soon be presenting potentialities for a way net guiding can save much more materials than earlier than, even at high machine speeds.

Exploring greatest practices, methods, technologies and processes in packaging improvements to meet the growing high quality requirements. Get an in-depth profile of Huangshan Novel Co Ltd, including a basic overview of the company's business and key administration, as well as worker information and site and get in touch with info. Various poly- metric supplies scale back the service life of sure fruits, in all probability due to migration of water from the encompassing area. White extruded ginseng extract has good potential to take care of the focus of antioxidants if used along with biodegradable stretch movie. The bodily properties of PHA copolymer depend of the composition and molecular construction of the copolymer.

After implementation of FDI in retail chain there shall be tremendous job opportunity in packaging sector. It has additionally been predicted that the Indian packaging market in the world, shall turn into the fourth largest market on the earth. After all, the nation is the world's second largest producer of food , the second largest producer of vegetables and the third largest producer of fruits on the earth. In case of spices, India accounts for 44% of worldwide trade in phrases of quantity and 36% in phrases of worth.

The global flexible packaging market research report features a detailed segmentation by materials, software, shopper versatile packaging end-users, product type, printing type, geography. The food industry, which accounted for over 70% of the versatile packaging market share in 2020, has majorly contributed to the versatile plastic segment. Premium products and most meals objects are packaged in flexible plastic pouches fitted with closures. The food, prescription drugs, and beverage industries are the key application end-users of versatile plastic pouches. Pouches have observed the highest demand in flexible plastic packaging; stand-up pouches are growing at an annual price of around 5%, as they use 60% much less plastic and are convenient to use.

If you utilize their plates, and place it in the floor, then a plant will actually develop out of it. They even include essential minerals in the plate to supply your new seedling with the nutrients it needs to grow. EcoWare, a New Zealand firm, is a carbon neutral firm, offsetting all of its power output by investing in clean expertise. Aside from their biodegradable dishware, in addition they sell bioplastic packaging that has an eighty % lower carbon footprint than regular plastic. Tipa produces a line of biodegradable flexible plastics like Ziplock baggage, rubbish baggage, and so forth.

[ajnaragroupnoida]

REAL ESTATE INVESTMENT VS. SHARE MARKET IN 2021-22. WHICH IS A SAFER OPTION?

The real estate market is one of the frontrunners of the economy of India. In addition to agriculture, it is also the country's primary job-creating industry and contributes 7% of its GDP. It has also been estimated that, if the announced policy measures are adequately enforced, the sector will donate 13% to the economy by 2025. This indicates that the industry still offers a plethora of investment opportunities. (Source- CNBCTV18)

However, the real estate market has gone through a range of ups and downs in recent years. As soon as the industry started to conquer the initial shock caused by systemic changes such as GST and RERA, the Covid-19 pandemic reached our shores. The nationwide lockdowns have led to fragmented supply chains and have caused issues with overseas procurement. The industry was also troubled with liquidity challenges and labour shortages.

Yet as we now have the vaccine, things are starting to look up positively. Investors are planning & plotting if it is a smart investment to invest in real estate in 2021.

Let us run through quickly the crucial factors which will help understand the current markets & how investing in real estate is a safer option:

Changed customer behavior post Covid-

The pandemic has triggered a sudden shift in consumer behavior and people's views of the real estate industry have shifted. Buyers investing in residential properties today want larger configurations with improved protection controls, emphasizing sanitation and captive facilities. With WFH being a standard, we might also see a growth in demand for residential properties with dedicated office spaces. If we include commercial real estate properties, satellite offices outside the central business areas will receive further interest.

The Road of Recovery- The Prime Minister's call for self-reliance in the Atmanirbhar Bharat campaign was a positive sign for the real estate industry. The growth in foreign direct investment (FDI) is also a measure of fast recovery. At the time, the devastation created by the pandemic may appear incomprehensible, but we do not forget that any catastrophe seems tiny in hindsight. The Covid-19 is just a blip on the global screen, and the Indian commercial real estate market continues to draw buyers who have their sights set on the long-term range. With the 2021-22 budgets have shown significant situation with regards to the affordable housing segment, the government will develop several flexibilities that will further fuel demand and attract even more exposure to investors. (Source- CNBCTV18)

As we advance into 2021, we can expect to see a consistent investment flow as easy liquidity by global central banks keeps a tight leash on interest rates and real estate investments promise high yields.

According to Savills India's report, private equity investment in the Indian realty sector may recover tremendously. It may bring an influx of $6 billion in 2021, registering a 30% Y-O-Y growth.

As the government undertakes economic recovery and development measures, metropolitan areas' real estate prices will stabilize. They may register an upwards in certain areas as the demand in those areas improves.

Increase in safe harbor limit w.r.t. sale of residential units- To incentivize home buyers and real estate developers, it is proposed to extend the safe harbor limit from 10% to 20% for the specified primary sale of residential units in this union budget. This means that homebuyers, who buy properties with values below the circle rate by up to 20%, will not have to pay additional tax. Similarly, developers selling units below the circle rate by up to 20% will not have to pay extra tax. This benefit will be applicable from the assessment year 2021-22.

Real estate vs. stocks-

Investing in real estate means you obtain a physical piece of property unlike the shares which are intangible. Notwithstanding the type of real estate investment you make, most investors make returns on monthly rental income or when they sell the property for an acknowledged value. On the other hand, when you buy shares of stock, you purchase a piece of a company. As the company's value grows, your stock value also increases. You can also receive income in the form of dividends on your shares if you hold on to your stocks over time. Well, certainly one has to make a note that the choice to invest in real estate or stocks is a personal preference that depends on your financial situation, risk tolerance, goals, and investment style. Also,

Real estate and stocks have several risks and possibilities.

Real estate is not as liquid as stocks and leads to require more money and time. But it does present a passive income stream and the potential for substantial appreciation.

Stocks are subject to market, economic, and inflationary risks but don't need a significant cash injection and they frequently can be quickly bought and sold.

An option to purchasing physical property is investing in real-estate investment trusts or REITs. REITs are particular companies that own income-producing assets in the commercial real estate space, such as office complexes, retail spaces, hotels and apartment buildings.

Many REITs are publicly traded like stocks and tend to pay more enormous dividends than their equity counterparts. REITs, like stocks, enable you to reinvest these dividends and strengthen your investment value. For this reason, they are quite a popular option for retirement investment accounts.

Real estate investment advantages-

A hedge against market buoyancy- Owning property can serve as a hedge against stock market volatility and inflation, as home values and rent prices tend to appreciate with inflation.

Tax benefits- There are surplus tax advantages for homeowners and commercial real estate owners. For instance, adequate homeowners can deduct the mortgage interest paid on the first $750,000 in mortgage debt. Commercial real estate owners can also avoid capital-gains taxes through a 1031 exchange if they reinvest in a comparable property with the funds or use MACRS (Modified Accelerated Cost Recovery System) depreciation to lower their taxable income. (Source- MarketWatch)

Constant Cash flow- Real-estate investments can offer owners a reliable, passive monthly income through the form of rent payments.(Source- MarketWatch)

In conclusion, we can say with a degree of certainty that the real estate sector is set to bounce back in 2021 and will, therefore, provide excellent investment opportunities – especially for players who are looking at long-term gains. As the buyer sentiment improves, the fence-sitters will also be encouraged to invest, further injecting liquidity in the sector.

Source- Flats in Raj Nagar Extension

[princeworld]

The future of retail

A new era has begun and digitization is at the verge of reaching its peak. Today there are 4.57 billion active internet users across the world which includes the 560 million users from India alone. India has become the hub of being the second largest online market in the world, ranked only behind China.

The government has imposed the initiatives like Start-Up India and Digital India causing a lot of e-commerce platforms to develop over a short span of time. Also the favorable FDI (Foreign Direct Investment) policies in India have caused the e-commerce sector to boost. This sector is set to grow at a Compound Annual Growth Rate (CAGR) of 19.6% between 2019 to 2023. The spike in B2C e-commerce has stocked up in essentials, given the Covid-19 outbreak and the lock-down imposed by the government.

Perks of E-commerce over traditional commerce:

From customer's view point:

Potential buyers can be provided with a lot of information that can make their shopping experience easier.

Improved customer service.

Opportunity to purchase products 24x7 comfortably and conveniently.

Opportunity to compare prices.

Opportunity to review purchases.

Convenient return policies.

From seller's view point:

24x7 potential income.

Low investment.

Sell unsold stock easily.

Able to process a high number of orders.

Grow organic traffic and sales with e-commerce blogging.

Creates a wide customer base both nationally and internationally.

There are various e-commerce platforms like Samanonspot, Dunzo, Big Basket, etc. that have gained a huge market share over the recent times and making huge profits. Retailers are going online by registering themselves with these e-commerce platforms and selling their products online at a stupendous rate and making large sums of money even during this pandemic situation. This is because consumers opt to shop their daily essentials by sitting at home and getting a delivery at their doorstep rather than going outside and risking their health.

So, if you are a seller then make sure to take the smart step and get your shop online by registering with any of these e-commerce platforms.

Samanonspot would be the best option for you if you are a beginner at selling your products and want to increase your customer base. They have a zero investment policy and you can register yourself with Samanonspot for free and  get your shop online. They would only charge you on the deliveries that they make from your shop to your potential customers. This e-commerce platform is favorable for you as a customer as well since they deliver all your products within a span of 60 minutes. You could also make a list of your products which you prefer to order on their consumer portal itself, which is very user friendly.  

So readers, here I end my blog and I hope you find this small piece of content insightful, pushing you towards making smart choices in the future. So, goodbye for now and happy reading.

[toppersexam]

UGC NET Commerce Books, Question Paper, Free Study Material, MCQ

UGC NET Commerce Books, Question Paper, Free Study Material, MCQ The National Eligibility Test, also known as UGC NET or NTA-UGC-NET, is the test for determining the eligibility for the post of Assistant Professor and/or Junior Research Fellowship award in Indian universities and colleges. UGC NET is considered as one of the toughest exams in India, with success ratio of merely 6%. UGC NET Commerce Question Paper and MCQs Buy the question bank or online quiz of UGC NET Commerce Exam Going through the UGC NET Commerce Exam Question Bank is a must for aspirants to both understand the exam structure as well as be well prepared to attempt the exam. The first step towards both preparation as well as revision is to practice from UGC NET Commerce Exam with the help of Question Bank or Online quiz. We will provide you the questions with detailed answer. UGC NET Commerce Question Paper and MCQs : Available Now UGC NET Commerce Free Study Material : Click Here UGC NET Commerce Books : Click Here UGC NET Commerce Syllabus Unit 1 – Business Environment and International Business Concepts and elements of business environment: Economic environment- Economic systems, Economic policies(Monetary and fiscal policies); Political environment Role of government in business; Legal environment- Consumer Protection Act, FEMA; Socio-cultural factors and their influence on business; Corporate Social Responsibility (CSR), Scope and importance of international business; Globalization and its drivers; Modes of entry into international business, Theories of international trade; Government intervention in international trade; Tariff and non-tariff barriers; India’s foreign trade policy, Foreign direct investment (FDI) and Foreign portfolio investment (FPI); Types of FDI, Costs and benefits of FDI to home and host countries; Trends in FDI; India’s FDI policy, Balance of payments (BOP): Importance and components of BOP, Regional Economic Integration: Levels of Regional Economic Integration; Trade creation and diversion effects; Regional Trade Agreements: European Union (EU), ASEAN, SAARC, NAFTA International Economic institutions: IMF, World Bank, UNCTAD, World Trade Organisation (WTO): Functions and objectives of WTO; Agriculture Agreement; GATS; TRIPS; TRIMS Unit 2 – Accounting and Auditing Basic accounting principles; concepts and postulates, Partnership Accounts: Admission, Retirement, Death, Dissolution and Insolvency of partnership firms, Corporate Accounting: Issue, forfeiture and reissue of shares; Liquidation of companies; Acquisition, merger, amalgamation and reconstruction of companies, Holding company accounts, Cost and Management Accounting: Marginal costing and Break-even analysis; Standard costing; Budgetary control; Process costing; Activity Based Costing (ABC); Costing for decision-making; Life cycle costing, Target costing, Kaizen costing and JIT, Financial Statements Analysis: Ratio analysis; Funds flow Analysis; Cash flow analysis, Human Resources Accounting; Inflation Accounting; Environmental Accounting, Indian Accounting Standards and IFRS, Auditing: Independent financial audit; Vouching; Verification ad valuation of assets and liabilities; Audit of financial statements and audit report; Cost audit, Recent Trends in Auditing: Management audit; Energy audit; Environment audit; Systems audit; Safety audit Unit 3 – Business Economics Meaning and scope of business economics, Objectives of business firms, Demand analysis: Law of demand; Elasticity of demand and its measurement; Relationship between AR and MR, Consumer behavior: Utility analysis; Indifference curve analysis, Law of Variable Proportions: Law of Returns to Scale, Theory of cost: Short-run and long-run cost curves, Price determination under different market forms: Perfect competition; Monopolistic competition; Oligopoly- Price leadership model; Monopoly; Price discrimination, Pricing strategies: Price skimming; Price penetration; Peak load pricing Unit 4 – Business Finance Scope and sources of finance; Lease financing, Cost of capital and time value of money, Capital structure, Capital budgeting decisions: Conventional and scientific techniques of capital budgeting analysis, Working capital management; Dividend decision: Theories and policies, Risk and return analysis; Asset securitization, International monetary system, Foreign exchange market; Exchange rate risk and hedging techniques, International financial markets and instruments: Euro currency; GDRs; ADRs, International arbitrage; Multinational capital budgeting Unit 5 – Business Statistics and Research Methods Measures of central tendency, Measures of dispersion, Measures of skewness, Correlation and regression of two variables, Probability: Approaches to probability; Bayes’ theorem, Probability distributions: Binomial, poisson and normal distributions, Research: Concept and types; Research designs, Data: Collection and classification of data, Sampling and estimation: Concepts; Methods of sampling – probability and nonprobability methods; Sampling distribution; Central limit theorem; Standard error; Statistical estimation, Hypothesis testing: z-test; t-test; ANOVA; Chi–square test; Mann-Whitney test (Utest); Kruskal Wallis test (H-test); Rank correlation test, Report writing Unit 6 – Business Management and Human Resource Management Principles and functions of management, Organization structure: Formal and informal organizations; Span of control, Responsibility and authority: Delegation of authority and decentralization Motivation and leadership: Concept and theories, Corporate governance and business ethics, Human resource management: Concept, role and functions of HRM; Human resource planning; Recruitment and selection; Training and development; Succession planning, Compensation management: Job evaluation; Incentives and fringe benefits, Performance appraisal including 360 degree performance appraisal, Collective bargaining and workers’ participation in management, Personality: Perception; Attitudes; Emotions; Group dynamics; Power and politics; Conflict and negotiation; Stress management, Organizational Culture: Organizational development and organizational change Unit 7 – Banking and Financial Institutions Overview of Indian financial system, Types of banks: Commercial banks; Regional Rural Banks (RRBs); Foreign banks; Cooperative banks, Reserve Bank of India: Functions; Role and monetary policy management, Banking sector reforms in India: Basel norms; Risk management; NPA management, Financial markets: Money market; Capital market; Government securities market, Financial Institutions: Development Finance Institutions (DFIs); Non-Banking Financial Companies (NBFCs); Mutual Funds; Pension Funds, Financial Regulators in India, Financial sector reforms including financial inclusion, Digitisation of banking and other financial services: Internet banking; mobile banking; Digital payments systems, Insurance: Types of insurance- Life and Non-life insurance; Risk classification and management; Factors limiting the insurability of risk; Re-insurance; Regulatory framework of insurance- IRDA and its role. Unit 8 – Marketing Management Marketing: Concept and approaches; Marketing channels; Marketing mix; Strategic marketing planning; Market segmentation, targeting and positioning, Product decisions: Concept; Product line; Product mix decisions; Product life cycle; New product development, Pricing decisions: Factors affecting price determination; Pricing policies and strategies, Promotion decisions: Role of promotion in marketing; Promotion methods – Advertising; Personal selling; Publicity; Sales promotion tools and techniques; Promotion mix, Distribution decisions: Channels of distribution; Channel management, Consumer Behaviour; Consumer buying process; factors influencing consumer buying decisions, Service marketing, Trends in marketing: Social marketing; Online marketing; Green marketing; Direct marketing; Rural marketing; CRM, Logistics management. Unit 9: Legal Aspects of Business Indian Contract Act, 1872: Elements of a valid contract; Capacity of parties; Free consent; Discharge of a contract; Breach of contract and remedies against breach; Quasi contracts, Special contracts: Contracts of indemnity and guarantee; contracts of bailment and pledge; Contracts of agency, Sale of Goods Act, 1930: Sale and agreement to sell; Doctrine of Caveat Emptor; Rights of unpaid seller and rights of buyer, Negotiable Instruments Act, 1881: Types of negotiable instruments; Negotiation and assignment; Dishonour and discharge of negotiable instruments, The Companies Act, 2013: Nature and kinds of companies; Company formation; Management, meetings and winding up of a joint stock company, Limited Liability Partnership: Structure and procedure of formation of LLP in India, The Competition Act, 2002: Objectives and main provisions, The Information Technology Act, 2000: Objectives and main provisions; Cyber crimes and penalties, The RTI Act, 2005: Objectives and main provisions, Intellectual Property Rights (IPRs) : Patents, trademarks and copyrights; Emerging issues in intellectual property, Goods and Services Tax (GST): Objectives and main provisions; Benefits of GST; Implementation mechanism; Working of dual GST. Unit 10: Income-tax and Corporate Tax Planning Income-tax: Basic concepts; Residential status and tax incidence; Exempted incomes; Agricultural income; Computation of taxable income under various heads; Deductions from Gross total income; Assessment of Individuals; Clubbing of incomes, International Taxation: Double taxation and its avoidance mechanism; Transfer pricing, Corporate Tax Planning: Concepts and significance of corporate tax planning; Tax avoidance versus tax evasion; Techniques of corporate tax planning; Tax considerations in specific business situations: Make or buy decisions; Own or lease an asset; Retain; Renewal or replacement of asset; Shut down or continue operations, Deduction and collection of tax at source; Advance payment of tax; E-filing of income-tax returns. NTA UGC NET Commerce Exam Pattern 2020 1. Paper I : It consists of 50 questions from UGC NET teaching & research aptitude exam (general paper), which you have to attempt in 1 hour. 2. Paper II : The UGC Commerce exam (paper 2) will have 100 questions and the total duration will be two hours. Each question carries 2 marks, so the exam will be worth 200 marks. Read below to know the pattern of NET Commerce examination (part II). Exam HighlightsDetails Test Duration120 minutes Total Questions100 Marks per question2 Total Marks200 Negative MarkingN/A Free Mock Test UGC NET Commerce : Click Here Online Test Series UGC NET Commerce : Click Here #UGCNETCommerce #UGCNETCommerce2020 #UGCNETCommerceExam #FreeTestSeries #QuestionsBank #UGCNETCommerceSyllabus #OnlineTestSeries #OnlineMockTest #ImportantQuestionPaper #ImportantQuestion

[rajkot-patrika]

Ride-hailing service Shopicab is commencing its operations in Pune

Namaste India! We are glad to announce the launch of our operations in your city. Whether you need to make a business trip, a factory visit or run errands within the city, you can now count on Shopicab to get you there!

 Shopicab the online cab booking has already commenced driver on-boarding in Pune and Kolkata.

 Introducing Shopicab, a superior cab service with a motto of “Customers First” coupled with on-time services and low fares, ride after ride. 

 Shopicab will offer you reliable and affordable transportation options for everyone, everywhere at the tap of a button.

 Over the years, commuters have not been offered stress-free alternatives nor has the industry been able to unlock the potential of ridesharing in India. Get ready; we are coming, now you no longer have to worry about booking a car in advance and coordinating multiple times with the driver. Just open your Shopicab app and get a car at the tap of a button.

 Shopizio E-Commerce Ltd., the group company of Shopicab, has successfully established itself over the course of 25 years in Kolkata and is now here in Pune to set new standards as “cab booking aggregator” catering timely pick and drop, pocket-friendly as loaded with discounts, unique business model and innovative tech app.

 Shopizio E-Commerce Limited incorporated its operations on 6th March 1995 in Kolkata and is registered with Ministry of Corporate Affairs and is the group company with subsidiaries in cab aggregator services, Agro Commodity trading, tele-shopping, Food Supplement Products, IT services & ITES, BPO, International Staffing & E- Commerce Marketplace.

 Shopizio takes pride in mentioning that it is a “Debt Free Company” from its inception in 1995 till current day and is in the process of listing it equity shares on the BSE - SME exchange in the coming months.

 Mr. Chittaranjan Roy – Managing Director & Promoter of Shopicab said, “The Company is launched with the sole purpose of bringing customers and drivers on a latest user-friendly mobile technology platform, ensuring convenient, safe, affordable, and comfortable personal transport for commuters. Shopicab is concentrating on leveraging the best technology and building innovative mobility solutions from scratch, which are going to be instrumental in revolutionizing the market by taking the commuting experience to an unprecedented level.

 He appended, “In line with achieving set “GOALS”, within timelines, we invite investors to partner our success by funding our growth i.e. Venture capitalists, Angel Investors, Car Manufacturers, Law firms, Investment bankers and other strategic collaborators, are most welcome to join the journey.”

 Shopicab app is for Android as well as iOS devices and uses Geo-location services to show the location of the cabs in real-time, enabling  users to actually see their position and call for them immediately.

 What make Shopicab stand out? 

 Team Shopicab has evolved strategies enabling us to stand- out with an industrial edge in our business segment, some unique highlights are :

 ●        No surge pricing 

●        Customer-first approach

●        24X7 Helpline

●        Innovative app

●        Fares as low as Rs. 7.00 per Kilometer

●        Safety ensured rides 

●        Latest GPS technology installed in every vehicle.

●        Dedicated pick up and drop facilities for school students 

●        Ambulance services

●        CCTV in each vehicle

●        Eco-friendly operations

●        Electric Mobility

●        Pink Car’s - Women empowerment

●        Specialized training for drivers

●        Clean Cabs

●        On- Time Cabs

●        Multiple Payment Options

●        ShopiCab Wallet

●        Automated Instant Invoice

●        Best Rated & Trained Drivers

●        Skill Development of the drivers in association with  various Government initiatives

●        Corporate responsibility towards Cab drivers and their associates by providing them with accommodation, food mess, training, Insurance and medical insurance, car washing & Maintenance, Educational Facilities for their Children & many other initiatives to make their lives meaningful.

 For Pune, Shopicab will have an interesting fleet of cars that include Hyundai i20, Renault Kwid, Datsun Go, Toyota Innova, Nissan Sunny etc.

 The Market Size

 Smartphone Penetration - In 2013 - 6% and May 2019 – 28% in metro cities, the penetration reached 60%-65% by Q1-2015.That is when and where the revolution of on-demand taxis began in India.

Penetration of app-based taxi services is only about 2 % (expected to hit 2.9 percent by 2023)

Indian Taxi Market -The Indian taxi market size was estimated at 1.9 million taxis estimated to generate $10 -$ 11 Billion revenue in 2019.

Unorganized Market -The unorganized small fleet operators account for ~91% market share in terms of registered taxi fleet. The arrival of on-demand taxi players has helped organize this market to a great extent.

Unique selling Proposition of Shopicab

No Surge pricing, Installation of CCTV, Introduction of a few ‘Pink Cab’s’ with women drivers ensuring safety of women passengers, Introduction of  ‘Green Cab’ and Electric Mobility, robust lost-and found centre and many other innovative features in the offer to delight the commuter’s mobility.

On the financial front we are  projecting a cumulative first 5 year’s  gross billings to commuter’s  of Rs. 18442 Cr with our “Net Effective Take”  pegged at Rs 2766 Cr and a negative PAT of 180 Cr.

Early stage Funding – To Kick start the projects we are seeking funding of Rs. 25 crores either from angel, VC, QIB, Investment funds and other collaborator’s with vested business interests.

In further funding rounds we will be seeking Rs 175 crores to expand our operation to a total of 75 cities.

The exit options proposed to reward our investors would be either listing of shares, private placement, buy back option, Merger or acquisition.

To join forces for being a part of ShopiCab’s success, the company is inviting PE/VC, Angel Investors, HNIs, Car Manufacturers/ Dealers, Law/CA/CS/CMA Firms, Investment Bankers, FIIs, FDI, QS, QIBs, Brokers, Portfolio Managers and other Strategic Collaborators

[samarthcapital]

What are the Advantages if you invest in FDI (foreign direct investment)?

A Tale of Two Entrepreneurs

Consider the story of Raj and Sarah, two ambitious business owners. Raj, a seasoned Indian entrepreneur, has been successfully running a textile manufacturing company for years.

Sarah, a visionary from the United States, has been eyeing India's vast market potential for her innovative textile technology.

Raj and Sarah's paths cross when Sarah decides to invest in Raj's company through FDI.

This strategic partnership not only brings Sarah's cutting-edge technology to India but also provides Raj with the capital and expertise to expand his operations.

Together, they create a synergy that propels their businesses to new heights.

The Benefits of foreign investment in India

Access to Global Markets and Technologies: FDI brings advanced technologies, innovative business practices, and global expertise to Indian companies, enabling them to compete on a global scale.

Job Creation: It contributes to India's employment growth by creating new job opportunities and upskilling the local workforce.

Increased Foreign Exchange Reserves: FDI inflows contribute to India's foreign exchange reserves, strengthening the country's economic stability.

Technology Transfer: It facilitates the transfer of advanced technologies, helping India to bridge the gap between its domestic and global technological capabilities.

Infrastructure Development: including transportation, communication, and energy sectors.

Knowledge Transfer: It fosters knowledge transfer between Indian and foreign companies, enhancing the skills and capabilities of the local workforce.

Increased Competition: Foreign investments promote healthy competition in the Indian market, driving innovation and efficiency among domestic companies.

Improved Corporate Governance: FDI encourages Indian companies to adopt international best practices in corporate governance, enhancing their overall performance and credibility.

Selling FDI Shares in India

Investors looking to sell their FDI shares in India can do so through a well-established process. Samarth Capital, a leading financial services provider in Mumbai, offers comprehensive FDI services, including share sale and purchase assistance.

Conclusion

There is a great opportunity for both Indian and foreign companies to leverage their strengths and create a mutually beneficial partnership if they invest in FDI. By embracing FDI, India can unlock its full potential, fostering economic growth, job creation, and technological advancement. As you navigate the world of FDI, remember that Samarth Capital is here to guide you through the process, ensuring a smooth and successful investment experience.

[flash--news]

Ride-hailing service Shopicab is commencing its operations in Pune

Namaste India! We are glad to announce the launch of our operations in your city. Whether you need to make a business trip, a factory visit or run errands within the city, you can now count on Shopicab to get you there!

Shopicab the online cab booking has already commenced driver on-boarding in Pune and Kolkata.

Introducing Shopicab, a superior cab service with a motto of “Customers First” coupled with on-time services and low fares, ride after ride.

Shopicab will offer you reliable and affordable transportation options for everyone, everywhere at the tap of a button.

Over the years, commuters have not been offered stress-free alternatives nor has the industry been able to unlock the potential of ridesharing in India. Get ready; we are coming, now you no longer have to worry about booking a car in advance and coordinating multiple times with the driver. Just open your Shopicab app and get a car at the tap of a button.

Shopizio E-Commerce Ltd., the group company of Shopicab, has successfully established itself over the course of 25 years in Kolkata and is now here in Pune to set new standards as “cab booking aggregator” catering timely pick and drop, pocket-friendly as loaded with discounts, unique business model and innovative tech app.

Shopizio E-Commerce Limited incorporated its operations on 6th March 1995 in Kolkata and is registered with Ministry of Corporate Affairs and is the group company with subsidiaries in cab aggregator services, Agro Commodity trading, tele-shopping, Food Supplement Products, IT services & ITES, BPO, International Staffing & E- Commerce Marketplace.

Shopizio takes pride in mentioning that it is a “Debt Free Company” from its inception in 1995 till current day and is in the process of listing it equity shares on the BSE - SME exchange in the coming months.

Mr. Chittaranjan Roy – Managing Director & Promoter of Shopicab said, “The Company is launched with the sole purpose of bringing customers and drivers on a latest user-friendly mobile technology platform, ensuring convenient, safe, affordable, and comfortable personal transport for commuters. Shopicab is concentrating on leveraging the best technology and building innovative mobility solutions from scratch, which are going to be instrumental in revolutionizing the market by taking the commuting experience to an unprecedented level.

He appended, “In line with achieving set “GOALS”, within timelines, we invite investors to partner our success by funding our growth i.e. Venture capitalists, Angel Investors, Car Manufacturers, Law firms, Investment bankers and other strategic collaborators, are most welcome to join the journey.”

Shopicab app is for Android as well as iOS devices and uses Geo-location services to show the location of the cabs in real-time, enabling  users to actually see their position and call for them immediately.

What make Shopicab stand out? 

Team Shopicab has evolved strategies enabling us to stand- out with an industrial edge in our business segment, some unique highlights are :

●        No surge pricing 

●        Customer-first approach

●        24X7 Helpline

●        Innovative app

●        Fares as low as Rs. 7.00 per Kilometer

●        Safety ensured rides 

●        Latest GPS technology installed in every vehicle.

●        Dedicated pick up and drop facilities for school students 

●        Ambulance services

●        CCTV in each vehicle

●        Eco-friendly operations

●        Electric Mobility

●        Pink Car’s - Women empowerment

●        Specialized training for drivers

●        Clean Cabs

●        On- Time Cabs

●        Multiple Payment Options

●        ShopiCab Wallet

●        Automated Instant Invoice

●        Best Rated & Trained Drivers

●        Skill Development of the drivers in association with  various Government initiatives

●        Corporate responsibility towards Cab drivers and their associates by providing them with accommodation, food mess, training, Insurance and medical insurance, car washing & Maintenance, Educational Facilities for their Children & many other initiatives to make their lives meaningful.

For Pune, Shopicab will have an interesting fleet of cars that include Hyundai i20, Renault Kwid, Datsun Go, Toyota Innova, Nissan Sunny etc.

The Market Size

Smartphone Penetration - In 2013 - 6% and May 2019 – 28% in metro cities, the penetration reached 60%-65% by Q1-2015.That is when and where the revolution of on-demand taxis began in India.

Penetration of app-based taxi services is only about 2 % (expected to hit 2.9 percent by 2023)

Indian Taxi Market -The Indian taxi market size was estimated at 1.9 million taxis estimated to generate $10 -$ 11 Billion revenue in 2019.

Unorganized Market -The unorganized small fleet operators account for ~91% market share in terms of registered taxi fleet. The arrival of on-demand taxi players has helped organize this market to a great extent.

Unique selling Proposition of Shopicab

No Surge pricing, Installation of CCTV, Introduction of a few ‘Pink Cab’s’ with women drivers ensuring safety of women passengers, Introduction of  ‘Green Cab’ and Electric Mobility, robust lost-and found centre and many other innovative features in the offer to delight the commuter’s mobility.

On the financial front we are  projecting a cumulative first 5 year’s  gross billings to commuter’s  of Rs. 18442 Cr with our “Net Effective Take”  pegged at Rs 2766 Cr and a negative PAT of 180 Cr.

Early stage Funding – To Kick start the projects we are seeking funding of Rs. 25 crores either from angel, VC, QIB, Investment funds and other collaborator’s with vested business interests.

In further funding rounds we will be seeking Rs 175 crores to expand our operation to a total of 75 cities.

The exit options proposed to reward our investors would be either listing of shares, private placement, buy back option, Merger or acquisition.

To join forces for being a part of ShopiCab’s success, the company is inviting PE/VC, Angel Investors, HNIs, Car Manufacturers/ Dealers, Law/CA/CS/CMA Firms, Investment Bankers, FIIs, FDI, QS, QIBs, Brokers, Portfolio Managers and other Strategic Collaborators

[anxiousnext]

The Ace of retaining customers through digital method

A Brief Introduction

Post liberalization of the Indian economy, India has witnessed a new economic phase where it slowly became an important part for the world economy. Together with this computers and internet’s entrants in the country has played an important role in our daily work, where the latest computer operating system supports the accounting software and does the work of balancing out the regular transactions whereas the Internet does the work of connecting people from one part of the world to other.

When the Mobile phones was invented 4 decades ago, it has seen an evolution in it’s features and services such that the name of mobile phone has been renamed to what we call it as “Smartphone”, which can partially do the work of what our computers and laptops can do.

Henceforth, now that we see that there has been a change in the buying behavior of the consumers, such change has also been seen in terms of consumers availing for financial services for wealth backup. However there is one of the few financial services that helps people the most in terms of proper wealth return is “Mutual Fund”.

So will it be a good time for financial company to invest their capital in Indian Financial Sector through digital marketing?

The answer is a big old “YES”.

India’s population consists of the young aged people who are in the workforce or would be joining the work force in the coming years. With this healthy age pool, it shows a promising look from the Indian economy side that the GDP would grow well and that people would also find other means to increase their wealth at regular times.

Although there are many other ways of investing money to generate good returns such as investment in share markets, equity bonds, but Mutual Funds has certain features that gives them an advantage over the other.

Why will financial companies starting their business in India will be beneficial?

Advantages:-

·         Growing demand – one thing is to be seen that the incomes of individuals in India are rising slowly and steadily yearly. Due to this need for financial services also have been seen across different income levels.

·         Government support – Government has approved new banking license and has increased the FDI Limit in the insurance sectors.

·         Growing Penetration – We now also see that insurance sectors have penetrated into the rural sectors and are rising. Because of this it can be seen that there has been a rise in the wealth management.  

·         Jan Dhan Yojna account – Announced on 15th August 2016 and launched on 28th August 2016, this has been one of the best ways for people to open a bank account without the need of any norms or any KYC complaint. Due to this there has been a total of 307 million people opening a Jan Dhan Yojna account.  

Why should it be marketed through digital platform?

Years back even before a decade when Non-Banking sectors who were basically used to partner with the banks to sell their financial services required a lot of human resources and consumed a lot of time. A change in the marketing services from utilizing third party solutions to digital methods would cover up these problems of human resources and avoiding time being wasted.

However Investments from financial companies for marketing through online portals is one of the least given important strategy done in the market economy one of the few reasons is because it is a lengthy process and that it requires more time to know about the various marketing strategy thoroughly.

Right Purpose.

Financial institution working to implement marketing strategies through digital platform should basically focus on customer acquisition, retention, and maintaining customer relationships. Ensure that a proper and healthy customer relationship is maintained this is one of the best method to generate more leads to convert them into sales.

Marketing through online portfolio will help companies to succeed in gaining customer retention by rigorous re-marketing strategies, regular customer follow up, etc.

Who should the target audience be?

Middle class section in the economy is in large numbers. Although The Economist tells that the product or service for the consumer market is very small and not enough growth. The reason is due to not being aware a lot and not being targeted through a proper method.

Companies should also focus on income sectors to release their plan. Like for instance a Mid-Size plan for middle income family should be released separately than for an upper middle class family. However, targeting the middle income family is one of the best ways to achieve their plan as they are the largest number of consumers being consisted in the economy.

Where the report according to the NCAER shows that the total number of middle class population was 267 million and that by 2025-26 the population would double to 546 million as individuals.  

In the above Image, we see that the range of the middle class people in total numbers for the year 2011-12(as population is counted on that year) is 594.3 million people, the middle class of the segment has been 108.5 Looking into the income of their daily wages, it is from $4 to $6 i.e Rs 220 to Rs 300. Now it is seen that the income on a daily wage would be approx. the double of it.

How to master the craft of marketing it through digital platform?

As the number of young people in India is increasing that the age pool in the workforce is high, we can propel them to take a small step in building their finance properly though Mutual funds.

1.       Engaging in Social Media – As the target consumers being the middle class section with the age group being consisted of young enthusiast. Social media platform is one of the best ways to market it. Targeting in professional platforms like LinkedIn and more common used social media app by every consumers being Instagram.

As there are two types of people living in our economy. One being:-

a.       Who are aware of mutual fund but isn’t sure as to which fund should they be investing in.

b.      Who are aware of mutual fund but is not sure at why should they invest in it for.

 So, one of the best way of promoting mutual fund in social media is by showing them ads of relevant content that would surprise them about the advantage of mutual fund.

By targeting these people who are aware and who aren’t by A/B testing, it will then show a proper direction as to what step should be taken in the next process.

 It can be done by doing two types of advertisement about how beneficial Mutual funds can be to an individual. When taking out the report from the ads played, you can then make a new concept of another advantage of having a mutual fund. Such marketing strategies regularly implemented will help the leads to grow slow and steady way.

 2.       Search Engine Optimization - Where an organization can make their mutual funds services reach to the audience at large without the need of spending money on marketing their particular mutual fund page. Explaining to their target audience what advantage one person gets if they avail their mutual fund services from their competitors.

 3.       Signing up for E-Mails - Sending regular e-mails about their mutual fund services is one of the best ways to ensure a proper mutual fund services. Through the data from e-mail marketing sending mails to your subscribers you can get to know as to how many of your subscribers have opened your emails, how many have unsubscribed and how many have turned into leads that then would be managed by the sales team. Through these data, one can even then make a prompt decision as to what, when and which parameters of the platforms should the steps be taken.

 4.       Display campaign and remarketing - Regular uploading of images, about the various mutual fund activities of your company allows your followers to know how well your mutual fund services portfolios being sold to the customers are performing. This in turn helps people to gain a positive image and trust amongst your followers, ensuring customer retention.

 With display campaign being done on the inorganic side, intense remarketing strategy will show a positive impact to your marketing process. It will drive a strong brand recall and will often get those people to come back to website. When a person starts engaging with the content regularly, it is a strong signal that you can drive desire and action.

 So, all in all these are few of the best ways to make your financial services reach to your audience at large. What’s your view on how can mutual funds can be reached out more to the people at large.

[ebizfiling11]

Advantages Of Setting Up A Subsidiary Company In India

Introduction

India's economy has risen because of the increasing number of investments made in India by foreign corporations. The main advantage of the Indian Subsidiary in India is that India has a young and efficient population, so creating a large labour pool for business will be effortless. Also, India has achieved a benchmark in its “Ease of Doing business” norms worldwide. More specific advantages for Indian Subsidiary are there in this blog.

What is a subsidiary company?

A company that is owned wholly or partly by another company is often referred to as a subsidiary company. A parent company or holding company is the term given to the parent company that owns the subsidiary. When a company takes control over the Board of Directors of a subsidiary company and possesses more than 50% of the total share capital, such company is referred to as the parent company. It is defined under section 2 (87) of the Companies Act, 2013.

Advantages of Subsidiary Company

No minimum capital: No minimum capital     required to form a Private Limited Company in India. For e.g. a PLC can be registered with a mere sum of Rs. 10,000 as total authorized share capital.

Separate legal entity: A Company is a separate legal identity in the court of law, meaning the assets and liabilities of the company are not the same as the assets and liabilities of the directors. Both are counted as different.

Limited liability: If the company undergoes financial distress for any reasons, the company handles paying all the debts and legal expenses incurred in the company and not the owner. For e.g. If a Private Limited company in India takes a loan and is unable to pay it off, the members are responsible for paying only the amount they own towards their own shareholding, i.e. the unpaid share value. That means, if you have no balance payable towards the amount of shares you hold, you are not liable to pay any debt of the company.

Easy transfer of shares: A company is limited by shares. This enables the company's promoters or shareholders to sell their shares to someone else who is eager to invest more money in the company and is interested in buying them. Compared to other types of debt, it is a simple solution to satisfy the financial demands of the company.

FDI allowed:   Subsidiary companies are frequently permitted to accept 100% Foreign Direct Investment, which is then used in majority of economic activity. However, prior notifications must be sent to the Reserve Bank of India.

Builds Credibility: The particulars of the company are available on a public database, which improves the credibility of the company as it makes it easy to authenticate the details.

Inflow of funds: The parent company can provide a continuous inflow of funds by subscribing to new shares of the subsidiary company and thus save it from the cost of debt.

Uninterrupted existence: A Private Limited company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.

Conclusion

One of the best investments is to establish a subsidiary company in India since the process is easy and it has many advantages. The Companies Act of 2013 governs the registration of Indian Subsidiaries.

[ezybizadviser]

Foreign company registration in India- Various Options

Foreign company registration in India

  Today, we will discuss about the various options of Foreign Company Registration in India.

 India is one of the fastest-growing economies in the world with a lot of opportunities not only for Indians but also for foreign citizens. Further, various governments’ schemes including make in India scheme promotes globalization and attracts investors to invest in India. Accordingly, lots of foreign enterprises and citizens are showing interest in business set up in India.

 Meaning of Foreign Company

 Sec 2 (42) of the Companies Act 2013 describes a foreign company as:

 “A foreign company is any company or body corporate incorporated outside India that—

 A)   Has a place of corporate in India whether by itself or through a mediator, actually or through electronic mode; and

B)   performs any business activity in India in any manner.

 There are many options for a foreign company to enter Indian market and do business as mentioned below:

 an Indian company

  In the form of Wholly Owned Subsidiary.

 In the form of Joint Venture

 a foreign company

   establishing a Liaison Office

 Representative Office or a Project Office 

 Branch Office of the foreign company

 Wholly Owned Subsidiary

 This is the most popular form of entity registration by foreign companies in India. Here, parent company holds almost 100% shares of the Indian company and Indian company becomes wholly owned subsidiary of the parent company. For getting approval of registration, relevant documents need to be filed with Registrar of Companies. Also, wrt share subscription money received from the parent shareholder, certain compliance needs to be done before RBI. Wholly owned subsidiary can do all the activities as prescribed in its MOA and AOA subject to FDI guidelines. This is opted by foreign companies when they want to do full-fledged business operations in India.

 Joint Venture

 In case of Joint Venture, 2 companies form a joint venture either by way of holding shares or by way of contractual agreement. Normally, joint ventures are done for a particular purpose and once the purpose is fulfilled, it is terminated. It can be in the form of normal private limited company registration wherein necessary approvals are taken from ROC.

 Liaison Office or Representative Office 

 Liaison office acts as a communication channel between Indian customers and foreign company. It cannot do any business operations in India. Also, it cannot earn any profits in India. This is opted by foreign companies when they want to do water testing in India before going for full-fledged business operations in India. The approval for LO is given by RBI.

 Following conditions need to be fulfilled for registration of Liaison office in India:

 1)      Parent company must have a profit-making record immediately preceding 3 financial years in the household country, and the net worth must not be less than USD 50,000. 

 2)      If above criteria is not met, comfort letter from parent company would be required.

 Project office

 Normally, a project office is opened in India when a foreign company gets some projects from government or Indian company for execution in India. It is opened for a particular project and only for limited time period till the continuation of the project. The approval for project office is given by RBI and it cannot carry on any other activities other than activities related to particular project.

  Branch Office 

 Branch office may be opened in India to undertake any one of the below mentioned activities as permissible by RBI namely,

 ·         Providing professional or consultancy services.

·         Acting as buying / selling agent on behalf of foreign company  in India

·         Wholesale import and export of goods

·         Conducting some research work in areas similar to where parent company is engaged

·         Providing technical support to the products supplied by parent/group companies

·         Providing services related to IT and Development of software in India

·         Acting as representative of  a foreign shipping company and Airline

·          

BOs cannot do following activities in India:

 ·         Construction activities

·         Manufacturing activities

·         Activities of Retail Trading

 For setting up BO, following conditions are required:

 a)      Foreign company must have profit track record during immediately preceding 5 financial years in home country.

 b)      Net worth of foreign company should not be less than USD 100,000 or its equivalent.

Thus, in the above write-up, we have provided a brief overview of various options of foreign company registration in India.

[daily-media]

Govt may offload up to 25% of its share in LIC in next 5 years

The government on February 13 filed the draft red herring prospectus to sell 5% of its equity stake in LIC in March

NEW DELHI : Even as the finance ministry is keeping an eye on global market conditions and whether they warrant deferring the initial share sale of the state-run Life Insurance Corporation (LIC), it is firming up a long-term, five-year plan to divest up to 25% of its equity in the firm, two officials familiar with the matter said on condition of anonymity. That may mean the initial share sale of 5% being followed up with a so-called FPO or follow-on public offer of 5-10% more within a year, they added.

Wide participation of policyholders, employees, retail investors and financial institutions will enhance transparency and efficiency in managing affairs of LIC, in which the government will always hold the majority stake and exercise management control, the two people confirmed, speaking on condition of anonymity.

“After the IPO, which has been scheduled this month, government may gradually reduce its shareholding in LIC depending on its disinvestment targets and market appetite. The size and the timing of such offerings cannot be decided in advance,” one of the two said.

The FPO could come sometime in 2023-24, he added. The government on February 13 filed the draft red herring prospectus (DRHP) to sell 5% of its equity stake in LIC in March while allowing participation of all types of institutional and retail investors, including LIC policyholders and employees.

A second person said, “As on now, there is no change in the LIC IPO schedule because of Russia-Ukraine crisis, but the issue could be postponed if market so warrants and experts so advise. The objective is clear, we have to maximise value for both the government and its potential shareholders.”

Finance minister Nirmala Sitharaman said in an interview with Business Line on Wednesday that the government may take another look at the timing of LIC’s initial share sale. “Ideally, I’d like to go ahead with it, because it is something we’ve planned for some time purely based on Indian considerations. But now, if global considerations warrant that I need to look at it, I wouldn’t mind looking at it again,” she said.

Experts say that the IPO can be launched and closed within the March 31 deadline if target is only domestic investors. “We should wait for the Ukraine situation to stabilise before launching the IPO. The situation may take 2-3 weeks to stabilise post which the GOI [Government of India] can reach out to investors for valuation feelers. If we consider only domestic factors, then the LIC IPO can go through by March 31,” said Arun Malhotra, founding partner and portfolio manager at CapGrow Capital Advisors.

S Ravi, former chairman of BSE and founder & managing partner of Ravi Rajan & Co LLP said: “Today we live in a connected world and the possibility of this war having an impact on the IPO may be there. But I think that LIC and the Indian government will make sure that this goes through without glitches.”

“Challenging global market scenario creates concerns amongst the investors and they may adopt a cautious approach to this IPO,” he added.

Ravi does not, however, see the FPO happening in the near future as “this is a very important investment vehicle for the government and proper strategic plans need to be laid out, before its execution”.

The union cabinet, in a meeting chaired by Prime Minister Narendra Modi on Saturday allowed up to 20% foreign direct investment (FDI) in LIC under the automatic route, paving way for participation of overseas funds in one of the country’s biggest IPOs. According to analysts, the value of the IPO is estimated to be around ₹65,000 crore. The company’s embedded value is pegged at ₹5.4 lakh crore. While the DRHP does not disclose the market valuation of LIC, experts say that it could be about ₹16 lakh crore.

[newsliveupdates]

In compliance with Indian laws, will cooperate with Enforcement Directorate on notice: Flipkart

Walmart-owned Flipkart on Thursday said the company is in compliance with Indian laws, including FDI regulations, and will cooperate with the Enforcement Directorate on the notice sent to the e-commerce major.

The Enforcement Directorate (ED) has issued a show cause notice of Rs 10,600 crore to Flipkart and its promoters for alleged violation of the foreign exchange law, official sources said on Thursday.

When contacted, Flipkart said it is in compliance with Indian laws and regulations, including FDI regulations.

"We will cooperate with the authorities as they look at this issue pertaining to the period 2009-2015 as per their notice," Flipkart added.

Comments could not be immediately elicited from the founders.

According to sources, the notice under various sections of the Foreign Exchange Management Act (FEMA) was issued to a total of 10 noticees last month that includes Flipkart, its founders Sachin Bansal and Binny Bansal among others.

The notice was issued after completion of investigation and the charges include violation of foreign direct investment (FDI) rules and those that regulate multi-brand retail, they added.

The case of alleged FDI rules violation against Flipkart has been under the ED scanner since 2012, and the agency, as per official sources, has found alleged violations of FEMA under various counts including an instance of transfer and issue of security to a person/entity outside India.

Notably, the US-based retail giant Walmart Inc had picked 77 per cent stake in Flipkart for USD 16 billion in 2018. Its founders and many of its investors had taken a partial or complete exit at that time. Sachin Bansal had exited from Flipkart, selling his about 5.5 per cent stake.

Last month, Flipkart Group had announced raising USD 3.6 billion (about Rs 26,805.6 crore) in funding led by GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, valuing the e-commerce giant at USD 37.6 billion

With this deal, SoftBank re-entered Flipkart's cap table. SoftBank had sold its approximately 20 per cent share when Walmart bought a stake in Flipkart.

Flipkart, which competes with companies including Amazon and Reliance JioMart in the Indian e-commerce space, has seen significant growth over the past many years.