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Q. > Please Help: Foreign Subsidiary
Before the incorporation of a subsidiary of a foreign company in india, the pre-operative/pre-incorporation expenses were met by foreign collaboration and were paid directly to the third parties without normal bankig channels, which was not allowed by RBI and FEMA. After this equity shares were issued against pre-operative expenses borne by the foreign collaborator without any prior approval.
What steps can be taken to get Post facto approval for issuance of equity shares against pre-operative expenses borne by the foreign collaborator. The company is engaged in the business of manufacturing locomotives and their parts.
Please Help..!!
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Rambabu Senkarasetti
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CA. SURESH Kr. AGARWAL
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