Microsoft to set up indian sales subsidiary

Overseas Investment under RBI Approval Route Proposals not covered by the conditions under the automatic route require prior approval of the Reserve Bank for which a specific application in Form ODI with the documents prescribed therein is required to be made through the Authorized Dealer Category — I banks.

Reserve Bank shall take into account the following factors while considering such applications: a Prima facie viability of the WOS outside India; b Contribution to external trade and other benefits which will accrue to India through such investment; c Financial position and business track record of the Indian Party and the foreign entity; and d Expertise and experience of the Indian Party in the same or related line of activity as of the WOS outside India.

With a view to enabling recognized star exporters with a proven track record and a consistently high export performance to reap the benefits of globalization and liberalization, proprietorship concerns and unregistered partnership firms are allowed to set up WOS outside India with the prior approval of the Reserve Bank subject to satisfying certain eligibility criteria.

Post investment, ensure receipt of share certificates or any other document as evidence and submit within six months to AD bank. Skip to content. It should be noted that individuals are not allowed to invest under the Automatic Route. Activities permitted for overseas investment An Indian company can make overseas investment in any activity except those that are specifically prohibited in which it has experience and expertise. The parent company usually holds a controlling interest in the subsidiary company, from 51 to 99 percent.

In cases where the subsidiary is fully owned— percent—by another company, the subsidiary is referred to as a wholly owned subsidiary. Creating a smaller company subsidiary to take care of specific parts of your operations so the parent can focus on other strategies and operations. The amount of power a parent company has over a subsidiary depends on their relationship.

Brand recognition. As subsidiaries grow in size, they can establish their brand recognition and increase the overall share of the market. Risk reduction. Increased efficiencies and diversification. Tax benefits. Subsidiaries can receive tax advantages, especially if a subsidiary is organised in a different county or country. Easier mergers and acquisitions. Subsidiaries can merge or sell company subdivisions easier and cheaper than if it was a parent company.

Nonprofit benefits. One variation of the parent and subsidiary structure is to have either or both restructure as an LLC. Companies have a choice of being organised as a corporation or LLC but must first think of how those decisions affect several mitigating factors like taxes, location, legal requirements, cost of formation, and shareholders.

Setting up a subsidiary corporation can offer significant liability protection, as well as other financial benefits. You can also create an A corporation, in which you would need to own at least 50 percent of the shares of the subsidiary. Skip to main content. This browser is no longer supported. Download Microsoft Edge More info. Microsoft Bookings Learn how to set up Microsoft Bookings to provide services to customers on an appointment basis.