#indian subsidiary of foreign company

[ebizfilingindia-blog]

Shareholding Rights of a Subsidiary in its Parent Company

Introduction

In this corporate world, a subsidiary company is known as an entity that is owned and controlled by its parent company. The parent companies own more than 50% of the stock and also control the operations of the subsidiary. However, when 100 percent of the shares of an Indian subsidiary are owned by another company, such a company is known as a wholly owned subsidiary. As per the Companies Act, 2013 a subsidiary company has no right to hold or own the shares of its holding company. In this blog, we will discuss the shareholding rights of a subsidiary company in its holding company under Section 19.

What is a subsidiary?

A subsidiary company is a company that is controlled and operated by another company, and the controlling company can be either a parent company or a holding company. It is a separate legal entity governed under the Companies Act, 2013. However, he may acquire, alienate and purchase property in his name and the existence of the company shall not be affected by the death or removal of any of the members.

What is a parent company?

A parent company is a company that owns more than half of the stock of an Indian subsidiary and can therefore control its operations. A parent company is a holding company that owns a significant number of voting shares of another company.

Shareholding Rights of a Subsidiary in its Parent Company

As per the provisions of Section 19 of the Companies Act, 2013, a subsidiary company is prohibited from holding any shares in its parent company, by itself or its nominee. In other words, the Indian subsidiary has no shareholding rights in its holding company. A provision of the Act also prohibits a holding company from allotting any shares in its Indian subsidiary.

However, there are certain cases where a subsidiary company holds shares in its parent company. The cases are as follow

●A subsidiary company holds shares in its parent company as the legal representative of a deceased member of the holding company. 

●An Indian subsidiary may own shares of the parent company as a trustee. 

●When an Indian subsidiary is functioning as a shareholder in its holding company prior to the establishment of that holding company. 

●An Indian subsidiary has the right to vote in a meeting of the holding company only as a legal 

representative or in respect of shares as a trustee, as referred to in (a) and (b). 

 What would be the effect if a subsidiary company could hold shares in its parent company?

●There will be overlapping interests of the members of the holding company as well as the subsidiary company. 

●The holding company's control over its Indian subsidiary will be affected. 

●For the parent company, the objective of solving critical issues and  risk diversification will no longer exist. 

●A holding company may not enjoy various tax benefits. 

●Dividend distribution will be a matter of conflict between parent and subsidiary companies. 

A holding company in India is an authority that exists independently and manages other companies via ownership of their shares.

Summary

A subsidiary company has no shareholding rights in its parent company as per the provisions of section 19. Such allotment or transfer of shares is prohibited under the Companies Act. However, there are certain legal conditions under which a subsidiary company can own the shares of the holding company. In case the holding company is limited by guarantee or the unlimited company has no share capital, the shares shall be converted in the interest of the members and then it shall determine that such company is a holding company of Indian subsidiary.

[masllp]

Subsidiary Company Registration in India: A Comprehensive Guide by Masllp

Setting up a subsidiary company in India has become an increasingly attractive option for foreign businesses seeking to expand into one of the world's fastest-growing economies. Whether you're a multinational corporation or a small business looking to tap into the Indian market, registering a subsidiary company in India offers numerous benefits. In this guide, we'll explore the process, benefits, and key considerations for subsidiary company registration in India, with expert insights from Masllp. Why Register a Subsidiary Company in India? India's booming economy, large consumer base, and favorable business environment make it an ideal location for foreign businesses to establish a subsidiary. Here are some compelling reasons to consider subsidiary company registration in India:

Access to a Growing Market: India is one of the largest markets in the world, with a population exceeding 1.4 billion. This vast consumer base offers tremendous opportunities for growth and expansion.

Favorable Investment Policies: The Indian government has implemented several reforms to attract foreign direct investment (FDI). These policies provide various incentives, including tax benefits and easier regulatory procedures.

Limited Liability Protection: A subsidiary company in India operates as a separate legal entity, offering limited liability protection to the parent company. This means that the parent company's assets are protected in the event of any liabilities incurred by the subsidiary.

Operational Flexibility: A subsidiary in India can operate independently, allowing the parent company to maintain control while benefiting from local expertise and resources.

The Process of Subsidiary Company Registration in India The process of registering a subsidiary company in India involves several steps. While it may seem complex, partnering with experts like Masllp can streamline the process and ensure compliance with all legal requirements.

Choosing the Right Business Structure: The first step is to decide on the type of subsidiary company you wish to establish. The most common types are:

Private Limited Company: The most preferred structure for foreign businesses, offering limited liability and ease of management.

Public Limited Company: Suitable for larger businesses planning to raise capital through public offerings.

Branch Office: An extension of the parent company, suitable for companies looking to explore the market without establishing a separate legal entity.

Obtaining Digital Signatures (DSC) and Director Identification Numbers (DIN): The directors of the subsidiary must obtain DSC and DIN, which are essential for filing online documents with the Registrar of Companies (ROC).

Name Approval: The next step is to reserve a unique name for the subsidiary company. This is done by submitting an application to the Ministry of Corporate Affairs (MCA).

Drafting Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the objectives, rules, and regulations of the subsidiary company. They must be drafted and submitted along with the registration application.

Filing the Registration Application: The final step involves submitting the registration application to the ROC, along with the necessary documents and fees. Once approved, the ROC issues a Certificate of Incorporation, officially recognizing the subsidiary company.

Key Considerations for Subsidiary Company Registration in India Before proceeding with subsidiary company registration, there are a few critical factors to keep in mind:

Compliance Requirements: Subsidiary companies in India must adhere to various compliance requirements, including annual filings, tax obligations, and audits. Partnering with experts like Masllp ensures that your subsidiary remains compliant with all legal requirements.

Taxation: Understanding the tax implications of operating a subsidiary in India is crucial. Subsidiaries are subject to corporate tax, GST, and other local taxes. Masllp can provide guidance on tax planning and optimization strategies.

Local Partnerships: Establishing partnerships with local businesses or consultants can provide valuable insights into the Indian market and help navigate regulatory challenges.

Cultural and Language Differences: Understanding the cultural and linguistic nuances of the Indian market is essential for successful business operations. Investing in local talent and resources can bridge these gaps.

How Masllp Can Help with Subsidiary Company Registration in India Navigating the complex process of subsidiary company registration in India requires expertise and local knowledge. Masllp offers comprehensive services to guide foreign businesses through every step of the process, ensuring a smooth and hassle-free experience. Our services include:

Legal Consultation: Expert advice on choosing the right business structure and complying with Indian regulations.

Documentation and Filing: Assistance with drafting and submitting all necessary documents, including MOA, AOA, and registration applications.

Tax Planning: Guidance on optimizing your tax strategy to minimize liabilities and maximize profits.

Ongoing Compliance Support: Ensuring your subsidiary remains compliant with all legal requirements, including annual filings and audits.

Conclusion Registering a subsidiary company in India is a strategic move that can open doors to one of the most dynamic markets in the world. With the right guidance and support from Masllp, you can navigate the registration process with ease and set your business up for success in India. For more information or to start the process of subsidiary company registration in India, contact Masllp today. Our team of experts is here to help you every step of the way.

[everything-is-crab]

Oh my god

Now I understand why there's sm plastic waste in beaches here (except for Goan beaches but that's because they're foreign tourist attraction spots).

Even then people are blaming no one but the Indian government.

Literally the government gave permission to import plastic waste from soft drinks company. And we all know they're mostly MNCs, the biggest one being Coca-Cola.

So basically foreign corporations establish their subsidiaries here, and decide to import all trash here so now the waste management is no longer the responsibility of whatever countries they're from. But sure, the issue is solely administration and not capitalism and imperialism.

This is what happens when you consume propaganda spread by capitalists in the name of environmentalism.

[hudsonmckenzie]

How legal firms in London can help a business expand in the Indian market?

Indian economy is in great shape. It’s got a very stable government at center. And it’s very positive towards foreign investment.  And thus, any business that wants to step in Indian market should get into the game without losing any more time. There are multiple ways a company can start its business in India. And setting up a subsidiary is one of the smart ways. But before you allocate resources into this initiative, it is essential to do a bit of brainstorming and figuring out how you’d handle the legal aspect of setting up and running a business in India. Legal firms can help a great deal Legal firms in London come in all shapes and kinds. And your job is to link up with a law firm that understands both the UK laws and the Indian laws, and also have link ups with the legal firms and accountancy firms of India. Such a legal firm will ensure that your business expansion process in India goes smoothly and your business get up and running within the preset timelines.

We advise you to spend a lot of time in speaking with a few of the legal firms in London, so you can end up with a firm that cares about your business plans as much as you do. Google for the best law firms in London and study their sites. Speak with them over phone. And visit their offices if you feel you need to. They can come over to your office to further understand how you plan to take your business to India, and how exactly you want to do there.

Steps to take after you find an ideal legal partner Once you settle down on your legal partner, you can think about other critical things that may affect your business plans. It could be about thinking ways to hire the talent to fuel your business growth in India, and finding land for your office, and all those minor-major things.

Back to the value that legal firms in London can create for your business Apart from helping you set up a business subsidiary in India, a legal or law firm in London can very well help with lots of other challenges that you may face while diverting your attention to India. Here’s a range of legal services that a law firm offers.

Project Finance

International private wealth and capital

Joint ventures, mergers, and acquisitions, and entry//exit strategies

Commercial issues including contracts, IP and IT

Data Protection and Privacy

Company Secretarial services

Mergers, joint ventures, acquisitions and entry/exit strategies

Mediation, Arbitration and Litigation

Establishment of subsidiaries

Immigration including visas, work permits and employment

[ventureasy01]

Expert Guidance on Indian Subsidiary Company Registration with Ventureasy

Foreign investors entering India’s vast market need expert guidance to navigate its complex subsidiary registration process. Ventureasy specializes in Indian subsidiary company registration, helping businesses meet government regulations, corporate governance norms, and tax laws. With Ventureasy, expanding into India is smooth, efficient, and legally compliant.

Contant Us - 9990952003 Email - hello@ventureasy.com More info - https://ventureasy.com/blog/subsidiary-registration-in-india/

[asj-ventures]

Market Morning Brief - 12th August

Asian markets trade flat and GIFT Nifty after turmoil on Hindenburg-Adani/Buch allegations.

Gift Nifty trading 9 points down at 8:06 am.

Israeli Defense Minister Yoav Gallant spoke on Sunday with U.S. Defense Secretary Lloyd Austin and told him Iran's military preparations suggest Iran is getting ready for a large-scale attack on Israel.

Key for the Federal Reserve will be U.S. consumer prices on Wednesday where economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2% hoping upto 0.5% rate cut.

Quarterly results today :

Vodafone Idea, Voltas, Bajaj Hindusthan Sugar, Balrampur Chini Mills, Campus Activewear, Dhanlaxmi Bank, DOMS Industries, Happiest Minds Technologies, Hindustan Copper, Housing & Urban Development Corporation, Indian Railway Finance Corporation, Natco Pharma, National Aluminium Company, NMDC, Olectra Greentech, Senco Gold, SJVN, Sunteck Realty, and Voltas.

Stocks in news today,

🎯Larsen & Toubro

Subsidiary L&T Semiconductor Technologies has completed the acquisition of a 100% stake in SiliConch Systems.

🎯Kotak Mahindra Bank

The bank has acquired 30 lakh equity shares of Open Network for Digital Commerce (ONDC) for Rs 30 crore. With this, the bank’s current shareholding in ONDC is 5.10%.

🎯Oil and Natural Gas Corporation

The company has received approval from the Government of India for the infusion of additional equity capital of up to Rs 10,501 crore in ONGC Petro Additions (OPaL), conversion of backstopped Compulsorily Convertible Debentures (CCDs) amounting to Rs 7,778 crore, and balance payment of Rs 86 crore with respect to share warrants, totaling Rs 18,365 crore. This will change the status of OPaL into a subsidiary of ONGC with a 95.69% equity stake.

🎯Bank of Baroda

The public sector lender has raised lending rates by 5 basis points (bps) on its three-month, six-month, and one-year tenures, effective August 12.

🎯Canara Bank

The bank has raised its lending rate by 5 bps across tenures, effective August 12.

🎯Atul

Subsidiary Atul Bioscience has received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (FDA) for its manufacturing facility at Ambernath, Maharashtra. The EIR was issued post the last inspection of the facility conducted from May 6 to May 10, which concluded with zero FDA 483 observations.

🎯Mastek

Hiral Chandrana has resigned as Group CEO of the company. The board has recommended Umang Nahata as the Interim Group CEO of Mastek Group, effective August 10. Umang Nahata is currently one of the non-Executive Directors of the company.

🎯Coffee Day Enterprises

The IDBI Trusteeship Services has admitted Coffee Day Enterprises into the National Company Law Tribunal (NCLT) for the initiation of Corporate Insolvency Resolution Process (CIRP) for Rs 228.45 crore. The company is planning to take the required legal action in this regard.

🎯Amara Raja Energy & Mobility

Subsidiary Amara Raja Advanced Cell Technologies has signed a Memorandum of Understanding (MoU) with Piaggio Vehicles, a 100% Indian subsidiary of the Italian auto giant Piaggio Group. Amara Raja will collaborate with Piaggio India to develop and supply LFP (lithium iron phosphate) Lithium-Ion (Li-ion) cells and chargers for its electric vehicles, along with developing cells and battery packs for their upcoming offerings.

🎯Caplin Point Laboratories

The United States Food and Drug Administration (US FDA) conducted an unannounced inspection of Caplin Steriles’ injectable and ophthalmic manufacturing facility at Gummidipoondi. The inspection was conducted between August 5 and August 9 and concluded with zero observations.

Positive 👍🏻

Bulk Deals

🎯Hatsun Agro Product

VVV and Sons Edible Oils sold a 0.6% stake in the company at an average price of Rs 1,227.27 per share.

🎯Paramount Communications

Foreign investor Nexpact sold a 0.76% stake in the company at an average price of Rs 80.5 per share.

🎯Updater Services

Foreign company India Business Excellence Fund IIA sold a 0.64% stake in the company at an average price of Rs 326.57 per share.

🎯ACE Software Exports

Ace investor Shankar Sharma has bought a 1.25% equity stake in the company at an average price of Rs 359.5 per share. However, Jamkuben Harilal Dhamsaniya sold a 2.03% stake in the company at the same price.

🎯Nexus Select Trust

Morgan Stanley Asia Singapore Pte ODI, HDFC Trustee Company - HDFC Flexi-Cap Fund, Morgan Stanley Asia Singapore Pte, ICICI Prudential Mutual Fund, Carmignac Gestion A/C Carmignac Emergents, and Wells Fargo Emerging Markets Equity Fund purchased a 7.76% stake in the trust at an average price of Rs 138 per unit. However, BREP Asia SG Red Fort Holding NQ Pte and BREP Asia II Indian Holding Co IX (NQ) Pte sold 20.82% units at the same price.

For More Detailed Analysis Connect with us at ASJ Ventures

ASJ Ventures

[taxdunia]

Unlocking Success: TaxDunia Proven Strategies for Foreign Company

Foreign Company Registration is the process of legally establishing a business entity in a country different from where it was originally incorporated. For businesses looking to expand internationally, this process allows them to operate and conduct business in a new market while complying with local laws and regulations.

The registration involves several steps, including choosing the right business structure (such as a subsidiary, branch office, or representative office), submitting necessary documents, and meeting legal requirements specific to the host country. This may include obtaining a local business license, registering with tax authorities, and adhering to local labor and corporate laws.

Successful foreign company registration can open up new opportunities, facilitate market entry, and help businesses gain a competitive edge. It’s essential to seek local legal and financial advice to navigate the complexities of the registration process and ensure compliance with all regulations in the new market.

India’s diverse business landscape and evolving regulatory environment can present unique challenges for international enterprises looking to establish a foothold in this dynamic market. However, with the right guidance and strategic approach, foreign companies can navigate these waters and unlock tremendous growth opportunities. Whether you’re a multinational corporation or a small-to-medium-sized enterprise, our goal is to empower you with the knowledge and tools necessary to make informed decisions and achieve your business objectives in the Indian market.

Why Register a Foreign Company in India?

India’s rapidly growing economy, large consumer base, and pro-business policies have made it an increasingly attractive destination for foreign direct investment (FDI). By establishing a registered presence in India, foreign companies can:

1.Access a Vast and Diverse Market: With a population of over 1.3 billion and a rapidly expanding middle class, India offers unparalleled opportunities for businesses to reach a vast and diverse customer base.

2.Leverage Cost Advantages: India’s competitive labor costs, skilled workforce, and favorable manufacturing and service sector environments can provide significant cost advantages for foreign companies.

3.Capitalize on India’s Strategic Location: India’s strategic geographic location, well-developed transportation infrastructure, and proximity to other emerging markets make it an ideal hub for regional and global operations.

4.Benefit from Favorable Policies and Incentives: The Indian government has implemented various policies and incentives to attract foreign investment, including tax benefits, special economic zones, and streamlined regulatory processes.

5.Enhance Credibility and Visibility: Registering a foreign company in India can enhance the company’s credibility and visibility, making it more attractive to potential partners, customers, and investors.

Key Considerations for Foreign Company Registration in India

Before embarking on the foreign company registration in India, it’s crucial to consider the following key factors:

1.Legal Structure: Determine the appropriate legal structure for your foreign company in India, such as a wholly-owned subsidiary, joint venture, or liaison office.

2.Sector-Specific Regulations: Understand the specific regulations and requirements for your industry or sector, as some sectors may have additional compliance obligations.

3.Taxation and Accounting: Familiarize yourself with India’s complex tax system, including income tax, goods and services tax (GST), and other relevant regulations.

4.Repatriation of Profits: Understand the rules and procedures for repatriating profits from India to your home country.

5.Regulatory Approvals: Identify the necessary regulatory approvals and licenses required for your business operations in India.

6.Compliance and Reporting: Ensure that you have a robust system in place to maintain compliance with all applicable laws and regulations, including timely filing of returns and reports.

Step-by-Step Process for Foreign Company Registration in India

Navigating the foreign company registration process in India can be a complex and time-consuming endeavor. At TaxDunia, we have developed a structured approach to guide our clients through each step of the process:

1.Name Approval: Obtain approval for the proposed name of your foreign company from the Registrar of Companies (ROC).

2.Incorporation: Incorporate your foreign company in India as a private limited company or a wholly-owned subsidiary.

3.Regulatory Approvals: Obtain necessary approvals and licenses from relevant authorities, such as the Reserve Bank of India (RBI), the Ministry of Corporate Affairs (MCA), and industry-specific regulators.

4.Taxation and Compliance: Register your foreign company for various tax and compliance requirements, including income tax, GST, and labor laws.

5.Bank Account Establishment: Open a corporate bank account in India to facilitate business operations and financial transactions.

6.Ongoing Compliance: Maintain ongoing compliance with all applicable laws and regulations, including timely filing of returns, reports, and other required documents.

Throughout this process, our team of experts at TaxDunia will work closely with you to ensure a seamless and efficient registration experience.

Choosing the Right Income Tax Consultant in India

Navigating India’s complex tax landscape is a critical aspect of foreign company registration and operations. Engaging the services of a reliable and experienced income tax consultant can make all the difference in ensuring compliance, minimizing tax liabilities, and optimizing your company’s financial performance.

When selecting an income tax consultant in India, consider the following key factors:

1.Expertise and Experience: Look for a consultant with a proven track record of handling tax-related matters for foreign companies operating in India.

2.Regulatory Knowledge: Ensure that the consultant is well-versed in the latest tax laws, regulations, and compliance requirements.

3.Responsiveness and Communication: Choose a consultant who is responsive, communicative, and able to provide timely and accurate advice.

4.Service Offerings: Evaluate the consultant’s range of services, including tax planning, return filing, audit representation, and advisory support.

5.Reputation and Credentials: Check the consultant’s reputation, professional affiliations, and client testimonials to gauge their credibility.

Benefits of Working with the Best Income Tax Consultant in India

Engaging the services of the best income tax consultant in India, such as TaxDunia, can provide a multitude of benefits for foreign companies operating in the country:

1.Comprehensive Tax Expertise: Our team of seasoned tax professionals possesses in-depth knowledge of Indian tax laws, regulations, and best practices, ensuring that your company remains fully compliant.

2.Proactive Tax Planning: We work closely with you to develop customized tax planning strategies that minimize your tax liabilities and maximize your financial returns.

3.Streamlined Compliance: We handle all your tax-related compliance requirements, including timely filing of returns, managing audits, and representing you before tax authorities.

4.Cost Optimization: By leveraging our expertise and economies of scale, we can help you achieve significant cost savings on your tax-related expenses.

5.Reduced Risk: Our thorough understanding of the Indian tax landscape and our commitment to staying up-to-date with the latest changes in regulations help you avoid potential penalties and legal issues.

6.Improved Decision-Making: Our tax advisory services provide you with valuable insights and recommendations to support your strategic business decisions in India.

7.Enhanced Credibility: Working with a reputable and trusted income tax consultant like TaxDunia can enhance your company’s credibility and reputation in the Indian market.

At TaxDunia, we are committed to helping foreign companies navigate the complexities of registering and operating in India. Contact us today to learn more about our proven strategies and how we can support your success in the Indian market. Visit us at taxdunia.com to get started.

Conclusion: TaxDunia’s Expertise in Foreign Company Registration in India

At TaxDunia, we are committed to empowering foreign companies to unlock their full potential in the Indian market. Our deep understanding of the country’s regulatory environment, tax landscape, and best practices, coupled with our client-centric approach, make us the trusted partner of choice for businesses seeking to establish a successful presence in India.

Whether you’re a multinational corporation or a small-to-medium-sized enterprise, our team of experts is ready to guide you through every step of the foreign company registration process and beyond. From incorporating your business to optimizing your tax strategy and ensuring ongoing compliance, we will work with you every step of the way to tackle challenges, reduce risks, and make the most of the great opportunities available in the Indian market.

Take the first step towards your success in India. Contact https://www.taxdunia.com today to learn more about our proven strategies and how we can help you navigate the complex world of foreign company registration in India.

Other Link

Private Limited Company Registration

One Person Company Registration Service

Public Limited Company Registration Service

GST Return Filing Services

Trademark Registration service

[ultimate-media-insights]

Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever. Having Kareena Kapoor as the ambassador, it ranked at number 1 among the cosmetics brands in India. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco). It was named after the French opera Lakmé, which itself is the French form of Lakshmi (the goddess of wealth) who is renowned for her beauty. It was started in 1952 famously because then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India. Simone Tata joined the company as director and went on to become the chairperson. In 1996, Tata sold off their stakes in Lakmé Lever to HUL, for Rs 200 Crore(45 million US$). Read more

[pmohantyblog]

Naming guidelines: undesirable names - Rule 8A | Legal Terminus

The draft rules under the Companies Act, 2013 provide clear guidelines for naming different types of companies, like Private Limited Companies, One Person Companies, and Limited Companies. For a company's name to be approved for incorporation, it must meet two main criteria: it must be unique and desirable. Accordingly, the Companies Act, 2013 outlines these guidelines in three rules, one of which is described below where it is listed out about the names which are considered as undesirable names:

Naming guidelines as per Rule 8A under the Companies Act, 2013;

The name shall be considered undesirable, if- 

it attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950); 

subject to section 35 of the Trade Marks Act, 1999 (47 of 1999), if the name includes a trade mark registered under the Trade Marks Act, 1999 (47 of 1999) and the rules framed thereunder in the same class of goods or services in which the activity of the company is being carried out or is proposed to be carried out, unless the consent of the owner or applicant for registration, of the trade mark, as the case may be, has been obtained and produced by the promoters; 

it includes any word or words which are offensive to any section of the people; 

the proposed name is identical with or too nearly resembles the name of a limited liability partnership: Provided that the provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling the name of a limited liability partnership; 

the proposed name is identical with or too nearly resembles with a name which is for the time being reserved in accordance with rule 9: Provided that the provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling with a reserved name; 

the company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, but the proposed name is not indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.; 

the company’s name is indicative of activities financing, leasing, chit fund, investments, securities or combination thereof, but the company’s main business is not related to such activities; 

it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;

the proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar: Provided that if a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available; Provided further that provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling the name of a company or limited liability partnership incorporated outside India; 

any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. cooperative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.; Explanation.- For the purposes of this sub-clause, it is hereby clarified that the name including phrase ‘Electoral Trust’ may be allowed for Registration of companies to be formed under section 8 of the Act, in accordance with the Electoral Trusts Scheme, 2013 notified by the Central Board of Direct Taxes (CBDT): Provided that name application is accompanied with an affidavit to the effect that the name to be obtained shall be only for the purpose of registration of companies under Electoral Trust Scheme as notified by the Central Board of Direct Taxes; 

the proposed name contains the words ‘British India’; 

the proposed name implies association or connection with an embassy or consulate or a foreign government; 

the proposed name includes or implies association or connection with or patronage of a national hero or any person held in high esteem or important personages who occupied or are occupying important positions in Government; 

the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding and a period of two years have not elapsed from the date of such dissolution: Provided that if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 248 of the Act or under section 560 of the Companies Act, 1956(1 of 1956) then the same shall not be allowed before the expiry of twenty years from the publication in the Official Gazette being so struck off; 

it is identical with or too nearly resembles the name of a limited liability partnership in liquidation or the name of a limited liability partnership which is struck off up to a period of five years; 

the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant;

the proposed name includes the word "State", in case the company is not a government company; 

the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited; 

Use of descriptive names, where the name merely consists of commonly used words to describe an activity. 

Explanation 1: The term “commonly used words” refers to use of generic expressions which may be used by any other company to describe its trade.

Explanation 2: While determining whether a name is descriptive or not, the objects of the proposed company or the order of words appearing in a name shall not be relevant. 

Illustrations 

(i) The names Silk Manufacturers Private Limited and Manufacturers Silk Ltd. are descriptive names as they merely describe an activity which may also be carried out by any other company and the order of the words is not relevant while determining a descriptive name. 

(ii) The names Technical Vista Ltd or Vista Technical are not descriptive as the names do not merely consist of commonly used words and the order of the words is not relevant while determining whether a name is descriptive. 

(iii) The name Drinking Water Plant Ltd. is a descriptive name, even if the object of the company is not related to making drinking water plant as it consists of commonly used words and objects of the proposed company is not relevant while determining whether a name is descriptive.

the proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed if the applicant produces any proof of significance of business relations with such foreign country like Memorandum Of Understanding with a company of such country: Provided that the name combining the name of a foreign country with the use of India like India Japan or Japan India shall be allowed if, there is a government to government participation or patronage and no company shall be incorporated using the name of an enemy country. Explanation.- For the purposes of this clause, enemy country means so declared by the Central Government from time to time. 

the proposed name of a section 8 company under the Act does not include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.

the proposed name of a Nidhi company under the Act does not have the last words “Nidhi Limited” as a part of its name.

the proposed name has been released from the register of companies upon change of name of a company and three years have not elapsed since the date of change unless a specific direction has been received from the competent authority in the course of compromise, arrangement and amalgamation. 

The applicant shall declare in affirmative or negative (to affirm or deny) whether they are using or have been using in the last five years , the name applied for incorporation of company or LLP in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity and if, yes details thereof and No Objection Certificate from other partners and associates for use of such name by the proposed Company or LLP, as the case may be, and also a declaration as to whether such other business shall be taken over by the proposed company or LLP or not.

Conclusion: The naming guidelines in the Companies Act, 2013 ensure that new company names are unique and desirable. These rules help avoid market confusion, protect trademarks, and maintain a professional image. By following these guidelines, businesses can create a strong and legal brand identity that reflects their values. Choosing the right name is an important first step in starting a company and sets the stage for future success.

Would you like to register a company? Hurry up! LegalTerminus can provide valuable assistance in smoothly and efficiently handling the registration process. Our experts ensure a hassle-free and timely transition, helping you fulfill your legal and regulatory obligations effectively. Reach out to us now to take advantage of our expert services and free consultation.

[trueenewshub]

Trump welcomed Indian ‘bahu’

IMC WEB DESK NEW DELHI: ‘As I began to think deeply about my identity, I fell hard for a classmate of mine named Usha’ JD Vance, Ohio Senator and Trump’s pick for Vice President reminisced about his Indian-origin wife.

INSIDE PAGE CONTENT

The intercultural marriage of US Senator

Born on August 2, 1984 James David Vance was the surprise pick as the running mate for by Donald Trump. The American politician, lawyer, author, and Marine veteran has served since 2023 as thejunior United states senator from Ohio. Republican candidate for vice president in the 2024 United States president election.

It is not that Trump and Vance has always been in paradise but at the end of the day the comfort level between the two won the day.

Trump’s running mate has an Indian-Origin mate in real life! James David Vance met his wife Usha Chilukuri at Yale Law School in the year of 2010 while discussing over a group project named social decline in white America.

In 2014, they finally got married in Kentucky after dating for four years by both Hindu and Catholic customs and rituals in the presence of their families.

Who is Usha Chilukuri?

Daughter of Indian immigrants, Usha Chilukuri Vance hails from a distinguished family of academicians in Vishakhapatnam.

The San Francisco Litigator’s parents Chilikuri Radhakrishna and Lakshmi moved to USA in 1980. Usha was raised in Sandiago suburbs. Usha’s grandfather and father have studied from the prestigious IIT.

Her father currently teaching engineering and her mother takes classes on molecular biology.

Her younger sister is a mechanical engineer with a semiconductor company in San Diego and an aunt a medical professional in the southern Indian city of Chennai.

Ms. Chilikuri has a great-aunt in southern India, aged 96, celebrated in local media as the country's oldest active professor.

The Indian-origin wife of Trump’s pick for Vice President had graduated in BA in History from Yale University 2008 and went on to pursue MPhil from University of Cambridge as Gates Cambridge Scholar in 2009.

According to The New York Times, during their wedding in Kentucky in 2014, the pair was blessed by a Hindu Pundit in a separate ceremony.

The Chilikuri family is known to uphold the Hindu ideology despite residing in USA for the longest time.

Foreign is not foreign to Indians

USA has always been inviting to Indians. It is noteworthy that Indian Americans hold over 60 notable positions in the federal government in 2013 and increasing to more than 150 by 2023.

The political radar is surely topped by Kamala Harris, the Indian Vice President of USA. She was the nation’s first Indian American senator and California’s first female and South Asian attorney general. Harris is the first woman to become vice president, as well as the first Black or Asian American person to hold the office.

The corporate world has always been open to super intelligent brains from India. Sundar Pichai is currently the CEO of Alphabet Inc. and its subsidiary company Google. He studied material engineering. Pichai joined Google in 2004, where he led the product management and innovation efforts for a suite of Google's client software products, including Google crome and ChromeOs, as well as being largely responsible for Google Drive.

Another Indian-American Corporate Stalwart, Satya Narayana Nadella was born 19 August 1967. He is the executive chairman and CEO of Microsoft, succeeding Steve Balmer in 2014 as CEO and Jihn W Thompson in 2021 as chairman. Before becoming CEO, he was the executive vice president of Microsoft's cloud and enterprise group, responsible for building and running the company's computing platforms.

One of the top CEOs of the world is an Indian-American, Indra Nooyi Krishnamurthy who was was the chairman and chief executive officer (CEO) of PepsiCo from 2006 to 2018. Born on October 28, 1955, Nooyi has been consistently ranked among the world’s 100 most powerful woman. In 2014, she was ranked at number 13 on the Forbest list, and the second most powerful woman on the Fortune list in 2015 and 2017. She sits on the board of Amazon and the International Cricket Council , among other organizations.

[marwahstudios]

Indian and Azerbaijani Filmmakers to Collaborate on Future Projects

Baku, Azerbaijan, July 3, 2024 – In a landmark move set to bolster the film industries of both nations, Sandeep Marwah, a distinguished figure in Indian film, television, and media, and President of Marwah Studios, has engaged in discussions with Nariman Mammadov of Nariman Film Production Company, Azerbaijan. The collaboration aims to explore a variety of film and business assignments, marking the beginning of a promising partnership.

“We are a Global Film Line production and services company headquartered in Baku, Azerbaijan, with several subsidiaries worldwide. Our mission is to provide the Azerbaijani and foreign business and filmmaking communities with quality brand-name professional line production, video and photo services, reliable and professional rent equipment, technical support, administration support, and unparalleled customer services,” said Nariman Mammadov.

During the meeting, Sandeep Marwah highlighted his extensive involvement in films, television productions, and related facilities. He also mentioned AAFT University, renowned for its film education and training programs.

Both parties are enthusiastic about identifying common interests and creating opportunities to bring the film industries of India and Azerbaijan closer. This collaboration promises to enhance cultural exchange and drive innovation in film production techniques and storytelling.

The partnership is expected to result in co-productions, shared resources, and mutual support in film projects, benefiting filmmakers and audiences in both countries.

[forblogmostly]

Vikas Lifecare Limited Announces Major Acquisition Plan of Ebix Inc.

In a significant strategic move, Vikas Lifecare Limited (VLL) has announced its intent to acquire 100% of the equity of Ebix Inc. This announcement was made on June 19, 2024, and marks a pivotal moment in VLL's expansion into the international market. The Plan Support Agreement for this acquisition has been approved by the Independent Directors of Ebix Inc., signaling a major step forward for VLL.

Details of the Acquisition

The Plan Support Agreement submitted by "The Consortium," which includes Vikas Lifecare Limited as the Stalking Horse Bidder, has been approved by Ebix Inc.'s Independent Directors. This agreement includes a 5% cash deposit remitted by the Consortium to further the acquisition process. The Consortium is led by Eraaya Lifespaces Limited (BSE Symbol: ERAAYA | 531035 ISIN: INE432F01024).

This acquisition will be executed through a Plan of Reorganization under the Chapter 11 provisions of the United States Bankruptcy Code. This plan has the backing of Ebix Inc.'s senior management, including the CEO, and will see the Consortium working closely with Ebix Inc. representatives to navigate the Chapter 11 process successfully.

Ebix Inc.: A Brief Overview

Ebix Inc. is a leading international supplier of on-demand software and e-commerce services, particularly to the insurance, financial, and healthcare industries. Listed on NASDAQ under the symbol EBIX, the company offers end-to-end solutions, including infrastructure exchanges, carrier systems, agency systems, and risk compliance solutions. Ebix's "Phygital" strategy integrates 320,000 physical distribution outlets in Southeast Asia with a robust online digital platform.

EbixCash, a major division of Ebix, operates in various financial sectors, including domestic and international money remittance, foreign exchange, travel services, pre-paid and gift cards, utility payments, lending, and wealth management. Notably, EbixCash's Forex operations dominate India's airport foreign exchange business, and its inward remittance business handles approximately $5 billion annually, establishing it as a leader in the Indian market.

Strategic Implications for Vikas Lifecare Limited

This acquisition aligns with Vikas Lifecare Limited's long-term strategy to diversify and expand its business interests beyond raw materials and into various high-growth sectors. VLL, an ISO 9001:2015 certified company, traditionally engages in manufacturing and trading of polymer and rubber compounds and specialty additives. The company also has a significant presence in smart gas metering through its subsidiary, Genesis Gas Solutions Pvt. Ltd., which supplies smart gas meters to major gas distribution companies in India.

In recent years, VLL has ventured into the B2C segment, introducing consumer products in FMCG, agro, and infrastructure sectors. The company's foray into the entertainment industry with the film production project "Lioness" in collaboration with Teamo Productions HQ Limited, exemplifies its commitment to exploring new business opportunities.

Regulatory and Financial Details

The acquisition of Ebix Inc. by VLL will be subject to the approval of the Bankruptcy Court in the United States, as per the provisions of the Chapter 11 process. The Consortium aims to complete this acquisition within an estimated timeframe of 2-3 months. The specific details regarding the nature of the consideration and the cost of acquisition will be disclosed upon the successful acceptance of the bid.

Conclusion

The acquisition of Ebix Inc. by Vikas Lifecare Limited represents a bold and strategic expansion into the global software and e-commerce market. This move is expected to open new avenues for VLL, enabling it to leverage Ebix's extensive expertise and market presence. Stakeholders and market analysts will be keenly watching the developments of this acquisition, which promises to significantly enhance VLL's business portfolio and global footprint.

[professionalutilities1]

What are the types of subsidiary companies in India?

The following are the sorts of subsidiaries that a foreign firm can establish in India. A wholly-owned subsidiary. A wholly-owned subsidiary is a subsidiary firm that a foreign company establishes in India. It is a separate legal entity from its parent company. It functions and administers autonomously, with its own board of directors, corporate constitution, and management staff. Joint venture In a joint venture, a foreign corporation works with an Indian partner to form a new entity that shares ownership, control, and earnings. Joint ventures are frequently formed for strategic alliances and to exploit local expertise. The Liaison Office A liaison office is a sort of subsidiary company established to facilitate the relationship between the parent firm, which is registered abroad, and the liaison company. Liaison offices are not permitted to engage in any business activities in India; they may only serve as a representative of the parent corporation in India. They are not permitted to make profits or enter into contracts. Branch Office: A branch office operates similarly to a parent corporation. A branch office can be created in various locations throughout India to conduct the same business operations as the parent company. Such organizations can perform all operations, including trading, consulting, and providing professional services. They can do research linked to the parent company's business activities.

The project office: The RBI's clearance is required to open the project office. The project office can only take on operations relating to Indian projects. The primary rationale for establishing a project office is that the corporation may have received a project from an Indian firm.

[yourglobalexpansionpartner]

The Role of FDI in India's Economic Growth: A Comprehensive Analysis

Foreign Direct Investment (FDI) has emerged as a cornerstone in India's economic development, transforming it into one of the most attractive investment destinations in the world. By infusing capital, fostering technological advancements, and enhancing managerial expertise, FDI in India has driven substantial economic growth. In this comprehensive analysis, we explore the multifaceted impacts of FDI on India's economy and underscore the essential role played by Fox&Angel in facilitating these investments.

The Transformative Impact of FDI in India

1. Economic Development and Job Creation

FDI has been a catalyst for economic development in India, spurring job creation and enhancing livelihoods. The entry of multinational companies has not only increased employment opportunities but also elevated wages and improved working conditions. Sectors such as manufacturing, information technology, and telecommunications have particularly benefited, creating millions of jobs. This influx of foreign capital has been crucial in reducing poverty and fostering inclusive growth.

2. Technological Advancements and Skill Enhancement

Foreign investors bring cutting-edge technologies and innovative practices, which are vital for the modernization of Indian industries. The technology transfer facilitated by FDI has led to significant advancements in sectors like automotive, pharmaceuticals, and renewable energy. Additionally, the presence of foreign companies has spurred the adoption of best practices in management and operations, leading to skill enhancement among the Indian workforce. These improvements have not only increased productivity but also positioned India as a hub for innovation and excellence.

3. Infrastructure Development

FDI has played a pivotal role in upgrading India's infrastructure. Investments in sectors such as transportation, telecommunications, and power have led to the creation of world-class infrastructure, essential for sustained economic growth. Improved infrastructure has facilitated smoother business operations and logistics, attracting further investments. The development of smart cities, industrial corridors, and logistics hubs are prime examples of how FDI is reshaping India's physical landscape.

4. Enhancing Global Competitiveness

By integrating with global supply chains, Indian companies have significantly enhanced their global competitiveness. FDI has enabled local firms to access international markets, diversify their product offerings, and improve quality standards. As a result, Indian businesses are now able to compete on a global scale, contributing to the country's export growth and strengthening its position in the global economy.

Fox&Angel: Facilitating FDI in India

Fox&Angel has been instrumental in attracting and facilitating FDI in India. As a leading advisory firm, Fox&Angel provides comprehensive support to foreign investors, ensuring a smooth entry and successful establishment in the Indian market. Their expertise spans market entry strategies, regulatory compliance, and business advisory services.

Market Entry Strategies

Navigating the complexities of the Indian market requires in-depth knowledge and strategic planning. Fox&Angel assists investors in identifying the right entry strategies, be it joint ventures, wholly-owned subsidiaries, or strategic alliances. Their insights help investors make informed decisions, minimizing risks and maximizing returns.

Regulatory Compliance

The regulatory landscape in India can be intricate, with numerous laws and regulations governing foreign investments. Fox&Angel offers expert guidance on compliance, ensuring that investors adhere to all legal requirements. Their support extends from obtaining necessary approvals to facilitating smooth interactions with government agencies.

Business Advisory Services

Beyond market entry and compliance, Fox&Angel provides ongoing business advisory services. This includes market research, financial planning, and strategic consulting, helping investors adapt to market dynamics and achieve long-term success. Their deep understanding of the Indian market ensures that investors are well-prepared to navigate challenges and capitalize on opportunities.

Challenges and Future Prospects

While FDI has significantly contributed to India's growth, challenges remain. Regulatory hurdles, policy inconsistencies, and infrastructure bottlenecks can deter potential investors. However, the Indian government has been proactive in addressing these issues through reforms aimed at improving the ease of doing business. Initiatives such as the Make in India campaign, the introduction of the Goods and Services Tax (GST), and the liberalization of FDI policies are steps in the right direction.

The future of FDI in India looks promising, with continued government efforts to create a favorable investment climate. Sectors such as renewable energy, healthcare, and digital technology are expected to attract substantial FDI, driving further economic growth and development.

Conclusion

Foreign Direct Investment has been instrumental in shaping India's economic trajectory, driving growth, innovation, and global integration. As India continues to evolve as a premier investment destination, FDI will remain a vital component of its economic strategy.

For businesses and investors looking to capitalize on the opportunities presented by FDI in India, partnering with a trusted advisory firm like Fox&Angel can make all the difference. Their expertise and comprehensive support ensure a seamless investment experience, paving the way for success in the dynamic Indian market.

Unlock the potential of FDI in India with Fox&Angel. Contact us today to explore how we can help you navigate the complexities of the Indian market and achieve your investment goals.

[atomxmedia]

Hindalco Subsidiary Novelis Targets $12.6 Billion Valuation in US IPO

Novelis, an Indian aluminum major Hindalco Industries wholly-owned subsidiary, is preparing for an IPO in the United States. With a target valuation of $12.6 billion, the business plans to issue 45 million shares in order to generate up to $945 million. Both Novelis and Hindalco should take note of this action, which strengthens Novelis’ position in the US market and gives Hindalco new funding.

IPO Details and Share Price Range

Novelis submitted a draft registration statement detailing the specifics of the planned initial public offering (IPO) to the US Securities and Exchange Commission (SEC). 45 million shares will be made available by the corporation, with prices per share ranging from $18 to $21. Novelis might be valued at $12.6 billion based on this price range.

Hindalco’s Continued Ownership

Hindalco will hold a sizable ownership position in Novelis after the IPO. According to the filing, AV Minerals (Netherlands) NV, Hindalco’s wholly-owned subsidiary, will retain ownership of around 92.5% of Novelis’ outstanding shares. This corresponds to about 92.5% of Hindalco’s voting power, provided the underwriters do not exercise their option to acquire more shares. Novelis will therefore be categorized as a “controlled company” in accordance with the NYSE’s corporate governance guidelines, and it will list there under the ticker code “NVL.”

Underwriters and Co-Managers for the Offering

The IPO is being facilitated in large part by a number of well-known financial firms. Co-book-running managers will include Morgan Stanley, BofA Securities, and Citigroup Global Markets. BMO Capital Markets, Deutsche Bank Securities, and Wells Fargo Securities will also serve as additional book-running managers. As co-managers, the offering will include BNP Paribas, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC, and SMBC Nikko.

Reduced Reporting Requirements for Novelis

Novelis will enjoy less reporting obligations for public companies since it is considered a “foreign private issuer” in accordance with SEC rules. This means that the prospectus and any subsequent SEC filings will have an easier time being filed.

Novelis: A Leader in Aluminum Production and Recycling

Novelis, with its headquarters in Atlanta, Georgia, is a major player in the aluminum sector. The firm is the largest manufacturer of flat-rolled aluminum products in the world and the leading recycler of aluminum in the world. Remarkably, Novelis was taken from the US stock exchange in 2007 following Hindalco’s takeover of the company.

Positive Outlook for the US IPO Market

After two difficult years, the US IPO market appears to be turning the round in 2024. Expectations of interest rate reductions in the second half of the year and a possible soft landing for the US economy are what are driving this optimistic mood.

Strong Performance by Hindalco

The parent firm of Novelis, Hindalco, recently released strong financial figures for the quarter that ended in March 2024. Consolidated net profit for the firm increased significantly year over year by 32% to ₹3,174 crore. Strong profitability and remarkable volume growth in their copper and aluminum business areas are responsible for this successful outcome.

Looking Ahead: A Promising Future for Novelis and Hindalco

Hindalco and Novelis both have a lot to gain from the impending IPO. Novelis strengthens its position in the US market and obtains new funding for possible expansion plans. In the meantime, Hindalco continues to have a majority position in the business and gains from the extra funds acquired through the IPO. Given the robust need for aluminum in the market, especially in India, it seems likely that both firms would continue to prosper in the years to come.

Novelis IPO: A Deep Dive into the Aluminum Giant’s US Market Re-entry

Novelis’s impending US initial public offering (IPO) is significant for the firm and the aluminum industry as a whole. The significance of this incident will be further examined in this part, along with any possible ramifications for Novelis, Hindalco, and the aluminum market environment.

Read more: Marketing News, Advertising News, PR and Finance News, Digital News

[tsasocial]

India: Optimistic outlook for machinery and plant engineering

India is becoming increasingly attractive for German and European machinery and equipment manufacturers, and the companies already operating there are currently very optimistic about their business outlook. This is the conclusion of the latest business climate survey conducted in April by VDMA among its member companies operating in India. It shows a continuing stable economic picture, although the business situation has weakened slightly since the last survey in October.

Business in India largely positive despite slight decline

More than 100 machinery and equipment manufacturing companies in India participated in the VDMA survey. Of these, 35 percent rated the business situation as good and 60 percent as at least satisfactory. Only 5 percent gave a poor rating. The overall result for the business situation is therefore slightly worse than six months ago, when 48 percent of respondents rated the business situation as good, 49 percent as satisfactory and only 3 percent as poor. Nevertheless, the situation remains overwhelmingly positive. The current balance of positive and negative assessments stands at 31 percentage points, which is still above the long-term average (25 percentage points) since the start of the surveys in spring 2017.

The domestic market in particular is viewed favorably by VDMA members in India. Overall order books and expectations for future incoming orders are assessed much more positively than incoming orders from abroad. More than half (53 percent) expect incoming orders to increase in the coming months. However, according to the survey, only 38 percent of respondents expect new orders from abroad to increase.

Construction machinery sector in India benefits from public investment

A mixed picture emerges when analyzing the sub-sectors. In particular, the construction and mining equipment sectors are doing particularly well thanks to robust public investment by the Indian government. ‘It is very encouraging to see that a high proportion of public investment is going into improving India's previously inadequate infrastructure. This should reduce the logistics costs for manufacturing companies in India, which are high by international standards,' says VDMA Chief Economist Dr Ralph Wiechers.

The textile machinery industry in India, on the other hand, recorded a rather below-average business situation. This is primarily due to the global economic downturn in the textile industry. Financial, geopolitical, and other country-specific challenges weighed on the global consumer sentiment and led to a decline in exports in the Indian textile industry.

"It is very encouraging to see that a high proportion of public investment is going into improving India's previously inadequate infrastructure. This should reduce the logistics costs for manufacturing companies in India, which are high by international standards" says Dr. Ralph Wiechers, VDMA-Chefvolkswirt

Very few respondents report impediments to business activities

When asked about impediments to doing business, only 17 percent of firms reported that this was the case. The most cited obstacle was 'other factors', with fierce price competition, particularly from Asian manufacturers, often cited. The strength of the euro or dollar against the rupee is also a significant factor. ‘Foreign subsidiaries often source key components from the parent company in Europe. If the rupee is weak, these imports become more expensive for the subsidiary in India,' says Dr Wiechers.

This is followed by a lack of orders at 8 percent, which is very low by international standards. Bottlenecks on the supply side, such as a shortage of raw materials or preliminary products or longer delivery times, are hardly recognized by companies across the board. However, companies do occasionally face supply chain challenges as commercial vessels continue to ply the Red Sea and the Suez Canal.

Optimism and expansion plans shape outlook

Over the coming months, 62 percent of respondents expect the business situation to improve from an already fairly positive situation. Only 2 percent expect the situation to worsen, while the remaining 36 percent expect it to remain the same. Rajesh Nath, Managing Director of VDMA in India, explains: ‘The positive sentiment reflects confidence in India's economic development and the country's potential as an attractive market for machinery and equipment. Moreover, the expansion of Indian industry will not only better meet domestic demand, but also strengthen the country as an alternative and reliable partner in the global market.’ Local VDMA members are also convinced that demand will increase. More than half of the respondents (59 percent) already produce in India. Of these, 72 percent are looking to expand their production capacity. And of the 41 percent who do not yet have their own local production facilities, just under a third (32 percent) are considering doing so in the future.