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How to do Startup Valuation for Startup Companies in India

Posted on by Sushil Choudhary

In this articles we will share the Startup Valuation Method that is mostly used by Venture Capitalist and Angel Investors for valuing Startups.  Startups are valued with different methods and approaches, this all depends on products, users, technology and revenue models. 

Here Investor invests to earn return of their equity and they risk high on startups because early stage startups have no business experience, no established brand of their products and services, No Human Resources, illiquid Investments etc. The Future of Startups are uncertain, so valuing a startup can be little bit tricky.

Here we will discuss startup valuation at pre-revenue stage or revenue generation just commenced and gradually being scaled up.

Minimum Requirements for Startup Valuation and Stake Diversion – Procedure 

Expected Investment by Venture Capitalist or Angel Investor :

For Example are you an startup Founder and have recently get connected with Venture Capitalist or Angel Investor, He wants to I invest Rs. 100 lakhs in your startup, so How much Company Stake are you willing to divert to get Rs. 100 lakh into your business. We will find this out at later stage. 

Expected Profits by Startup Company will earn 

It is Important to know that what products or services startup entity have , how much it will earn in next year. We need to do some maths and got that company will earn profits of Rs. 300 Lakhs on fifth year. 

Expected Return on Equity Investor expects from Startup entity 

There is certain percentage return that Investor expects to earn from its Investment  , say Investor wants to earn 20% return on Investment per year, 25% return on Investment per year. 

The required Future Value of Investment = 100*(1.20) for 5th Year 

if you calculate the Future Value this Comes out at = 248.83 at 20% and 305.18 at 25% 

Valuation of Company at this time

5th Year Net Profit * PE Multiple 

300*8 = 2400 Lakhs 

How much Company Stake to be diverted 

248.83/2400*100 = 10.36% stake

Fastlegal Provides Valuation Services for Startup Entities though IBBI  registered Valuers, Email us your Requirements at [email protected]

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How to Apply for FCRA registration of NGO in India

Posted on by Sushil Choudhary

Any NGO receiving Foreign Contribution is required to take FCRA registration with Ministry of Home Affairs online. 

Eligibility criteria for grant of registration

For applying for registration under FCRA NGO should:

  •  be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 (Now Section 8 of Companies Act, 2013) etc;
  • Normally be in existence for at least three years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilised.
  • For this purpose, the association should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to be submitted to substantiate that it meets the financial parameter

Permission to accept Foreign Contribution

There are two modes of obtaining permission to accept foreign contribution according to FCRA, 2010:

  • Registration ( Minimum Requirements Discussed Above) 
  • Prior Permission

An organization in formative stage is not eligible for registration. Such organization may apply for grant of prior permission under FCRA, 2010.

Prior permission is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. For this purpose, the association should meet following criteria:

  • be registered under  Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 etc;
  • submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given; and
  • For Indian recipient organizations and foreign donor organizations having common members, FCRA Prior Permission shall be granted to the Indian recipient organizations subject to its satisfying the following:
  •  The Chief Functionary of the recipient Indian organization should not be a part of the donor organization.
  •  At least 51% of the office-bearers/ members of the Governing body of the Indian recipient organization should not be members/employees of the foreign donor organization.
  • In case of foreign donor organization being a single person/individual that person should not be the Chief Functionary of the recipient Indian organization.
  •  In case of a single foreign donor, at least 51% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor

Conditions to be met for the grant of registration and prior permission

In terms of Sec.12 (4) of FCRA, 2010, the following shall be the conditions for the grant of registration and prior permission:

(a) The ‘person’ making an application for registration or grant of prior permission-

  • is not fictitious or benami;
  • has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another;
  • has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country;
  • has not been found guilty of diversion or mis-utilisation of its funds;
  • is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends;
  • is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
  • has not contravened any of the provisions of this Act;
  • has not been prohibited from accepting foreign contribution;
  • the person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him.
  •  the person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him.

(b) the acceptance of foreign contribution by the association/ person is not likely to affect prejudicially –

  • the sovereignty and integrity of India;
  • the security, strategic, scientific or economic interest of the State;
  • the public interest;
  • freedom or fairness of election to any Legislature;
  • friendly relation with any foreign State;
  • harmony between religious, racial, social, linguistic, regional groups, castes or communities.

(c) the acceptance of foreign contribution-

  •  shall not lead to incitement of an offence;
  •  shall not endanger the life or physical safety of any person.

Documents Required for Making FCRA registration Application 

(A) Registration

  • jpg file of signature of the chief functionary (size:__________)
  • self-certified copy of registration certificate/Trust deed etc., of the association (size:_____________)
  • self-certified copy of relevant pages of Memorandum of Association/ Article of Association showing aim and objects of the association.
  • Activity Report indicating details of activities during the last three years; (size:_____________)
  • Copies of relevant audited statement of accounts for the past three years (Assets and Liabilities, Receipt and Payment, Income and Expenditure) clearly reflecting expenditure incurred on aims and objects of the association and on administrative expenditure; (size:______________)

(B) Prior Permission

  • jpg file of signature of the chief functionary (size:__________)
  • self-certified copy of registration certificate/Trust deed etc., of the association (size:_____________)
  • duly signed Commitment Letter from Donor.
  • If functioning as editor, owner, printer or publisher of a publication registered under the Press and Registration of Books Act, 1867, a certificate from the Registrar of Newspapers for India that the publication is not a newspaper in terms of section 1(1) of the said Act.

Fastlegal Provides FCRA Registration Services , for more information Please Call at 9782280098 or email us at [email protected]

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PWD Contractor Licence in Rajasthan

Posted on by Sushil Choudhary

PWD Contractor Licence is mandatory required to obtained before applying for any Tender in Rajasthan for PWD Contractor work. 

Every person who is planning to apply for tendor for government works must obtain the contractor licence with PWD.

Minimum Requirements for applying Contractor Licence with PWD :

Contractor must have Firm Registered , a Firm can be proprietorship firm, company, Partnership or LLP ( you can choose any type of business entity) ( For Firm Registration with Fastlegal call 9782280098 or email : [email protected] )  

Obtain GST Registration : Your Firm must have GST Registration ( for GST Registration call 9782280098 or email : [email protected]) 

Categories of contractors:

  • Civil Contractors (entitled for construction of buildings,bndges, canals, reservoirs, filter plants and other watersewerage schemes as well as other construction works)
  • Furniture & Joinery Works Contractors
  • Electrical Works Contractors
  • Sanitary, Pipe Fitting and Plumbering Works Contractors
  • Painting Works Contractors

Application form for Registration :  Application Form for Contractor Enlistment is required to be obtained from Department with payment of Rs. 50 

Class of Contractor and Amount of work that can be done :


S. No. 
Class of contractors		Extent upto which qualified to tender for any, work
1AA classAny amount
2A ClassUpto Rs. 3.00 crores
3.B ClassUpto Rs. 1.50 crores
4.C ClassUpto Rs. 50 Lacs
5.D ClassUpto Rs. 15 Lacs

Registration fee Contractor Registration : 


Class of contractors		Amount of Registration Fee in Cash/Treasury Challan/Bank Demand Draft (Non-refundable)Amount of Security Depositin form of Interest bearingDeposit/FDR of Bank 
ClassAA
Rs. 10,000.00		4 Lakh
Class ARs. 7500.002 Lakh
Class BRs. 5000.001 Lakh
Class CRs. 2000.0050 Thousand
Class DRs. 1000.0025 Thousand 

Fastlegal provides Contractor Registration Services in Jaipur, Rajasthan , for any Queries Please call 9782280098 or email at [email protected]

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How to file Form INC 22A (Active Company Tagging Identities and Verification)

Posted on by Sushil Choudhary

Active Company Tagging Identities and Verification (ACTIVE) form INC 22A is required to filed by every Company incorporated on or before 31st December, 2017 to MCA.

Mandatory Requirements for Filing Form INC 22A: 

  1. Address of Registered Office of the company, Photo of Office Address is required to be uploading along with Director of the company who is signing the Form INC22A
  2. Company should file all its overdue returns before filing form INC22A
  3. Every Director of the company must be KYC complied ( Must have filed form DIR3KYC) 
  4. Email Id of the company ( to be verified through OTP) 
  5. List of Directors as on date of filing of Form INC 22A
  6. Details of Auditor of the company including Name of Firm, PAN, Membership Number , Period from which Appointed  
  7. Details of cost Auditors, if applicable  
  8. Details of Managing Director , CEO, Manager of the company 
  9. Details of company Secretary of the company , if applicable 
  10. Details of CFO of the company , if applicable 
  11. SRN of E form Filed for Financial Year 2017-18

Due Date for Filing Form INC 22A (ACTIVE) 

The E form INC22A is required to Filed on or Before 25th April, 2019 

Late Fee

Late Fee for Filing E form INC 22A after 25th April 2019 will be Rs. 10000/- 

Effect of Non filing 

Company Status will be Changed to “ACTlVE-non-compliant” and Company will not required to file other forms 

(i) SH-07 (Changc in Authorizr:d Capital);

(ii) PAS-03 (Changc in Paid-up Capital);

(iii)DIR- 12 (Changes in Director except cessation);

(iv) INC-22 (Changc in Registered Ofhce);

(v) INC-28 (Amalgamation, de-merger)

File ACTIVE (INC22A ) with Fastlegal – Call – 9782280098 or Email : [email protected] 

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Reporting of Outstanding Loans and Advances to MCA in E-form DPT-3

Posted on by Sushil Choudhary

In the Recent Notification dated 22nd Jan, 2019 Ministry of Corporate Affairs has mandated every Company to Report outstanding and Advances to MCA in E Form DPT-3 within 90 days of this notification. 

The MCA has amended the existing deposit rules in which MCA has clarified that  that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.


Who is Required to File Form DPT-3 

Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits,

in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified

in Form DPT-3

within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014

Every Company : Means Every company whether Private Company, Public Company, Small Company, OPC, Nidhi Company etc 

What Information to be provided in Form DPT-3 for Amounts which are not considered as Deposits:-

 Any amount received from or as Loan or Financial Assistance  –

  • the Central Government; or
  • a State Government; or any amount received from any other source whose repayment is guaranteed by the Central Government or State Government; or
  • any amount received from a local authority; or
  • any amount received from statutory authority constituted under an Act of Parliament or a State Legislature.
  • Foreign Governments
  • Foreign or international banks
  • Multilateral financial institutions
  • Foreign Governments owned development financial institutions;
  • Foreign export credit agencies
  • Foreign collaborators
  • Foreign body corporate
  • Foreign citizens
  • Foreign authorities 
  • Persons residents outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999)
  • A loan or facility from any banking company
  • From the state Bank of India or any of its subsidiary banks
  • From a banking institution notified by the Central Government under section 51 of the Banking Regulation Act
  •  A corresponding new bank as defined in clause( d )of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or
  •  From a cooperative bank as defined in clause (b-ii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)
  • Public Financial Institutions notified by the Central Government;or
  • Any regional financial institutions
  • Insurance companies; or
  • Scheduled Banks as defined in the Reserve Bank of India Act,1934(2 of 1934).
  • Any amount received against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the Reserve Bank of India
  • Any amount received by the company from any other company
  • Any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment of securities applied for
  • Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or the relative of the director of a private company
  • Any amount raised by the issue of bonds or debentures secured by a first charge or a charge ranking pari passu with the first charge on any assets referred to in Schedule III of the Act excluding intangible assets of the company
  • Any amount raised by the issue of non-convertible debentures not constituting a charge on the assets of the company and listed on recognized stock exchange as per applicable regulations made by Securities and Exchange Board of India
  • Any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit
  • Any non-interest bearing amount received and held in trust

Any amount received in course of , or for the purposes of the business of the company-

  • As an advance for supply of goods or provision of services accounted for in any manner whatsoever provided that such advance is appropriated against supply of goods or provision of services within a period of three hundred and sixty five days from the date of acceptance of such advance.
  •  As advance accounted for in any manner whatsoever, received in connection with consideration for immovable property under an agreement or arrangement, provided that such advance is adjusted against such property in accordance with the terms of agreement or arrangement.
  • As security deposit for performance of the contract of supply of goods or provision of services
  • As advance received under long term projects for supply of capital goods except those covered under item (b) of subclause (xii) clause (c) of sub- rule (1) of rule (2) of the Companies (Acceptance of Deposits) Rules, 2014.
  • As an advance towards consideration for providing future services in the form of a warranty or maintenance contract as per written agreement, if the period for providing such services does not exceed the period prevalent as per common business practice or five years, from the date of acceptance of such service whichever is less.
  • As advance received and allowed by any sectoral regulator or in accordance with directions of Central or State Government.
  • As an advance for subscription towards publication, whether in print or electronic to be adjusted against receipt of such publications.
  • Any amount brought in by promoters of the company by way of unsecured loans in pursuance of the stipulation of any lending financial institution.
  • Any amount received by a Nidhi company in accordance with the rules made under section 406 of the Act.
  • Any amount received by way of subscription in respect of chit under the Chit Funds Act, 1982(4 of 1982)
  • Any amount received by company under any collective Investment scheme in compliance with regulations framed by the Securities and Exchange Board of India
  • Any amount of twenty five lakh rupees or more received by a start up company, by way of convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche, from a person

Any amount received by a company from –

  •  Alternate Investment Funds
  • Domestic venture Capital Funds
  • Infrastructure Investments Trusts
  • Real Estate Investment Trusts
  • Mutual Funds registered with the Securities and Exchange Board of India.

In all the above cases which are not considered as Deposit , Specific Amount with each case is required to Reported  in the E form.

What if company does not have any amount that is required to be reported ?

In this case company is not required to file Form DPT-3 

Is DPT-3 is One Time Return or to be Filed Every Year : 

Non Deposit Amounts are to be Reported One Time Only

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MSME Return to MCA/ROC

Posted on by Sushil Choudhary

In the recent amendment the Ministry of Micro small and Medium enterprises prescribed Half Yearly Reporting to MCA by Companies 
which receives services or goods from micro or small enterprises and whose payments to micro and small enterprises suppliers exceed 45 days

Every company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification – Means the Due date for First Return is 21st Feb, 2019

Everycompany shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.

Form Required to be Filed to MCA/ROC:-

MSME Form I

Information required to be Filed in MSME Form I:-

Initial return of outstanding dues to Micro or Small Enterprises Suppliers

Total outstanding amount due as on date of notification of this order

Particulars of the name of suppliers and amount of payments due :-

  • Financial Years/Particulars
  • Name of Suppliers
  • PAN of Suppliers
  • Amount Due
  • Specify the date from which amount is due

REGULAR RETURN OF OUTSTANDING DUES TO MICRO AND SMALL ENTERPIRSES

Total outstanding amount during April to September

Particulars of the name of suppliers and amount of payments due :-

  • Financial Years/Particulars
  • Name of Suppliers
  • PAN of Suppliers
  • Amount Due
  • Specify the date from which amount is due

Total outstanding amount during October to March

  • Financial Years/Particulars
  • Name of Suppliers
  • PAN of Suppliers
  • Amount Due
  • Specify the date from which amount is due

Reasons for Delay in amount of payments due

The Form is required to be Digitally Signed by Director/CEO/Manager/Company Secretary of the Company

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Procedure for Setting up Branch Office(BO), Project Office (PO) and Liaison Office (LO) in India

Posted on by Sushil Choudhary

Foreign Companies Setting up Branch Office(BO), Project Office (PO) and Liaison Office (LO) in India is required to make application to AD category Banks through which it wishes to peruse Banking Operations  

Eligibility Criteria for Setting up Branch Office / Project Office or Liaison Office in India 

  • The Applicant Company Should be Body Corporate Incorporated Outside India 
  • For Branch Office — a profit making track record during the immediately preceding five financial years in the home country and net worth of not less than USD 100,000 or its equivalent.
  • For Liaison Office — a profit making track record during the immediately preceding three financial years in the home country and net worth of not less than USD 50,000 or its equivalent.

Note: 
An applicant that is not financially sound and is a subsidiary of another company may submit a Letter of Comfort (LOC) (Annex A) from its parent/ group company, subject to the condition that the parent/ group company satisfies the prescribed criteria for net worth and profit.

Net worth : 

Net Worth [total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name called].

Cases in Which RBI Approval is required for Setting up Branch Office(BO), Project Office (PO) and Liaison Office (LO) in India

  • The applicant is a citizen of or is registered/incorporated in Pakistan;
  • The applicant is a citizen of or is registered/incorporated in Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau and the application is for opening a BO/LO/PO in Jammu and Kashmir, North East region and Andaman and Nicobar Islands;
  • The principal business of the applicant falls in the four sectors namely Defence, Telecom, Private Security and Information and Broadcasting.
  • The applicant is a Non-Government Organisation (NGO), Non-Profit Organisation, Body/ Agency/ Department of a foreign government.

Procedure for making Application to AD-Category Bank for Setting up Branch Office(BO), Project Office (PO) and Liaison Office (LO) in India

If the Applicant Company fulfills the above mentioned eligibility Criteria , the Application can be made to AD category Bank through which applicant company wishes to peruse Banking Relations 

  1. The Application shall be made in Form Form FNC  to a designated AD Category – I bank along with Following Documents : 
  • Copy of the Certificate of Incorporation / Registration; Memorandum of Association and Articles of Association attested by the Notary Public in the country of registration.

    [If the original Certificate is in a language other than in English, the same may be translated into English and notarized as above and cross verified/attested by the Indian Embassy/ Consulate in the home country].
  • Audited Balance sheet of the applicant company for the last three/ five years in case of branch office/liaison office respectively.

    [If the applicants’ home country laws/regulations do not insist on auditing of accounts, an Account Statement certified by a Certified Public Accountant (CPA) or any Registered Accounts Practitioner by any name, clearly showing the net worth may be submitted]
  • Bankers’ Report from the applicant’s banker in the host country / country of registration showing the number of years the applicant has had banking relations with that bank.
  • Power of Attorney in favor of signatory of Form FNC in case the Head of the overseas entity is not signing the Form FNC.

The AD Category-I bank shall after exercising due diligence in respect of the applicant’s background, and satisfying itself as regards adherence to the eligibility criteria for establishing BO/LO/PO, antecedents of the promoter, nature and location of activity of the applicant, sources of funds, etc., and compliance with the extant KYC norms grant approval to the foreign entity for establishing BO/LO/PO in India. The AD Category-I banks may frame appropriate policy for dealing with these applications in conformity with the FEMA Regulations and Directions, However RBI will issue LIN to every BO/LO.

The validity period of an LO is generally for three years, except in the case of Non-Banking Finance Companies (NBFCs) and those entities engaged in construction and development sectors, for whom the validity period is two years only. The validity period of the project office is for the tenure of the project.

Once  applicant that has received a permission for setting up of a BO/LO/PO shall inform the designated AD Category I bank as to the date on which the BO/LO/PO has been set up. The AD Category I bank in turn shall inform Reserve Bank accordingly. In case an approval granted by the AD bank has either been surrendered by the applicant or has expired without any BO/LO/PO being set up, the AD Category I bank shall inform RBI accordingly.

Fastllegal provides Business setup Services for foreign Entities in India , companies may contact at [email protected] or Place a request at https://fastlegal.in/place-your-request.html

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FDI in Cash & Carry Wholesale Trading/Wholesale Trading in India

Posted on by Sushil Choudhary

FDI in Wholesale Trading is allowed 100% under Automatic Route Subject to some Conditions. 

Meaning of Wholesale Trading/ Cash and Carry Wholesale Trading 

Cash & Carry Wholesale trading/Wholesale trading, would mean sale of goods/merchandise to retailers, industrial, commercial, institutional or other professional business users or to other wholesalers and related subordinated service providers. Wholesale trading would, accordingly, imply sales for the purpose of trade, business and profession, as opposed to sales for the purpose of personal consumption. The yardstick to determine whether the sale is wholesale or not would be the type of customers to whom the sale is made and not the size and volume of sales. Wholesale trading would include resale, processing and thereafter sale, bulk imports with ex-port/ex-bonded warehouse business sales and B2B e-Commerce

2. Guidelines for Cash & Carry Wholesale Trading/Wholesale Trading (WT)

(a) For undertaking WT, requisite licenses/registration/ permits, as specified under the relevant Acts/Regulations/Rules/Orders of the State Government/Government Body/Government Authority/Local Self-Government Body under that State Government should be obtained.

(b) Except in case of sales to Government, sales made by the wholesaler would be considered as ‘cash & carry wholesale trading/wholesale trading’ with valid business customers, only when WT are made to the following entities:

(I) Entities holding sales tax/ VAT registration/service tax/excise duty registration; or

(II) Entities holding trade licenses i.e. a license/registration certificate/membership certificate/registration under Shops and Establishment Act, issued by a Government Authority/Government Body/Local Self-Government Authority, reflecting that the entity/person holding the license/ registration certificate/ membership certificate, as the case may be, is itself/ himself/herself engaged in a business involving commercial activity; or

(III) Entities holding permits/license etc. for undertaking retail trade (like tehbazari and similar license for hawkers) from Government Authorities/Local Self Government Bodies; or

(IV) Institutions having certificate of incorporation or registration as a society or registration as public trust for their self consumption.

Note: An entity, to whom WT is made, may fulfill any one of the 4 conditions

(c) Full records indicating all the details of such sales like name of entity, kind of entity, registration/license/permit etc. number, amount of sale etc. should be maintained on a day to day basis.

(d) WT of goods would be permitted among companies of the same group. However, such WT to group companies taken together should not exceed 25% of the total turnover of the wholesale venture.

(e) WT can be undertaken as per normal business practice, including extending credit facilities subject to applicable regulations.

(f) A wholesale/cash & carry trader can undertake retail trading, subject to the conditions as applicable. An entity undertaking wholesale/cash and carry as well as retail business will be mandated to maintain separate books of accounts for these two arms of the business and duly audited by the statutory auditors. Conditions of the FDI policy for wholesale/cash and carry business and for retail business have to be separately complied with by the respective business arms.

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FDI in Limited Liability Partnership (LLP) in India

Posted on by Sushil Choudhary

FDI in LLPs is permitted subject to the following conditions:

(i) FDI is permitted under the automatic route in Limited Liability Partnership (LLPs) operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions.

(ii) An Indian company or an LLP, having foreign investment, is also permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions.

(iii) Conversion of an LLP having foreign investment and operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI linked performance conditions, into a company is permitted under automatic route.

Similarly, conversion of a company having foreign investment and operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions, into an LLP is permitted under automatic route.

(iv) FDI in LLP is subject to the compliance of the conditions of LLP Act, 2008.

Reference: https://dipp.gov.in/sites/default/files/CFPC_2017_FINAL_RELEASED_28.8.17.pdf 

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Meaning of Person of Indian Origin (PIO)

Posted on by Sushil Choudhary

(PIO) means a citizen of any country other than Bangladesh or Pakistan, if

(i) he at any time held Indian Passport; or

(ii) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or

(iii) the person is a spouse of an Indian citizen or a person referred to in subclause (i) or (ii).

Reference: https://dipp.gov.in/sites/default/files/CFPC_2017_FINAL_RELEASED_28.8.17.pdf