By purchasing or taking over an Shelf/Inactive company, the purchaser and or the Investor can immediately open Bank account of his own choice and start the operations. Shelf Company may or may not be a Dormant Company under the Companies Act, 2013which provides for the Dormant status for the first time in Companies Act, 2013.
Advantageous of Purchasing a Shelf Company:
- Should have the PAN Card to start with.
- Open the Bank Account immediately on purchase.
- Start operations without any time loss.
- Should have the address of Registered office address till new offices are taken
- Should have Indian resident Director till the investor appoint his own resident Director.
On purchase or taking over of the Shelf company, the investors need to appoint his own Directors on the Board of Directors of the Company and also required to change the Registered office of the Company. As per the provisions of the Companies Act, 2013 at least one Director of a company Registered in India needs to be a resident in India. We at Hushai Consultants LLP will provide you the time to comply with this requirements on charging nominal charges in these respect. However once the investor had started operations he needs to find out his own resident Directors and the Directors of the Hushai Consultants LLP will resign immediately.
The purchaser or Investor of Shelf Company required to carry on the following changes if he deems fit to suit his requirements of Business operations.
- Change of Name of the Company.
- Change of Object of the Company
- Change in capital structure of the Company
- Increase in Paid-up capital of the Company.
- Obtaining VAT Registration/ServiceTax Registration.
- Obtaining Shop and Establishment License.
- Obtaining Professional Tax Registrations.
All these can be done during the time your operations, that means it can be done after starting your business operations in India.
Further the Purchaser or Investor of the Shelf Company need to follow Foreign Direct Investment (FDI) guidelines in respect of his inward remittances.
Almost all the Sectors, except few is covered under the Automatic Route of Reserve Bank of India, subject to such Sectoral Cap and the Purchaser or Investor need to file or comply with RBI guidelines by filing form FC-TRS for the transfer purpose and for further investments for FC-GPR.
Shelf companies having the objects or area of businesses in the following sectors are available for takeover.
- Software/Information Technology
- Infrastructure Development
- General Trading
- Engineering Consultancy
Bank Account Opening:
Generally Bank Account opening can be completed in two days time. Bank account may be opened with the signatory nominated by Hushai Consultants LLP within the time frame and later it will be replaced with the signatories of the Purchaser or Investor.
For the purpose of opening Bank Account, if the Investors personal presence is not available physically in India, it can be completed based the documents attested from Investors home country.
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