Introduction
As Per section 6(3) of the Income Tax Act, any company which is incorporated in India is always considered as resident company or during the year control and management of its affairs situated wholly in India.
Indian company:
An Indian company always resident in India.
Foreign Company:
When a foreign company is “resident”:
• Control and management of affairs of a company wholly In India.
When a foreign company is “non-resident”:
• Control and management of affairs of a company wholly outside India and partly in India and partly outside India.
An Indian company is always resident in India. A foreign company is resident in India only if the control and management of its affairs are wholly in India. The term
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2(23A)]
It means a company which is not a domestic company, i.e. a company registered outside India in any other foreign country.
The Foreign Company may be treated as Domestic Company if such company makes prescribed arrangement in India as per Rule 27.
Sec.6 (3), Residential Status of foreign Company
Foreign Company is treated as Resident in India if it’s Control and Management is located wholly in India. Foreign Company is treated as Non-Resident in India if its Control and Management located wholly / partially Outside India. Sections applicable to Foreign Company are 44BBB, 44D, 115A, 195 etc.
Domestic Company
A Domestic Company means an Indian Company or any other company with respect to its income, liable to tax under the Income-Tax Act, has made the prescribed arrangements for the declaration and payment within India, of the dividends (including dividends on preference shares) payable out of such income. Thus, all Indian Company are treated as Domestic Company but all Domestic Company are not Indian Company. If a Foreign Company makes prescribed arrangements for payment of dividends in India it shall be treated as Domestic Company.
Residential Status of A
With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies
Joint Venture is “a partnership, individual, or corporation that pools labor and capital for a limited period of time” (Kubasek, Brennan, Browne, 2015, p. 431). This method can increase liability and limit outside opportunities where the business can not expand their product line and have to utilize the products provided by the company they have a joint in a agreement. The mission of the coffeehouse is to be unique and special. This type of model would not allow originality and for that reason, its not recommend that Shania get involved with a joint venture.
However, if the company have an office in the UK but carrying on any other activity of a preparatory or auxiliary character such as storage, maintenance of stock of goods and collecting information then it will not be considered as PE and therefore will not be taxed.
First is purchase own shares or holding company shares means that, the director is prohibited from purchase their own shares or holding company shares. If the director do that, the company does not liable to that offence but only the director liable to that offence. This action are stated in section 67(3) in company act 1965 that said, “if there is any contravention of this section, the company is not guilty of an offence but each officer who is in default shall be guilty of an offence against this Act”. There are penalty to that director if they are doing such action. The penalty are imprisonment for five years o...
Globalization is a double-edged sword, smart local companies have used the benefits of globalization to close gaps in technology, capital, and talent with their rivals from the developed world. Local firms act strategically in order to keep the multinational out of the competition, this attempts the local companies to capitalize the local presence & the command over the cultural & economical environment in their home country. In this paper we will try to highlight on the fact that local firms can compete successfully to MNC with close to Kingfisher & Haier as examples.
In the year 2007, China and India ranked first and second respectively in the list of ideal foreign direct investment (FDI) destinations, according to A T Kearney, a global strategic management consulting firm (The Press Trust of India Limited, 2007a). The two nations, because of their similarities in geopolitical, economic and demographic aspects, are often compared with each other. To determine which one is more attractive for businesses to expand to, this essay will examine the business environment of both countries from the following perspectives: political/legal, economic, socio-cultural and technological.
2.Strong Company in defense space and prospective to benefit from offset provision in Indian defense imports.
Refers to the processes or organizations which takes place across or beyond national boundaries. Example: European commissions (MacDonald’s “Be active campaign” ).
a company which is incorporated in Mauritius or has its Central Management and control in Mauritius
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.
Government interference is still relatively high and government contacts are essential to do business in India. Since its openness to the global market and trade liberalization in 1991, India’s labor laws have been pushed to be less restrictive on companies and private capitalists. The nation’s tariffs continue to be high with still restrictive investment norms (The World Bank Group).
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
Before the easing period of the Indian economy there have been only a few corporations as an example Kelvinator, Godrej and Voltas that were thought-about because the leading market share holders, accounting for roughly ninetieth of the market. however when the easing period several MNC’s like LG, Sony, Samsung, Whirlpool, etc entered into the Asian countryn markets and these days these corporations have management
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.