The Tax Publishers

Companies Act--MOA

Subscription to MoA by Foreign National/NRI

Pragya Lalwani

Not only can an individual residing in India but also a person resident outside India become a subscriber to Memorandum. Learned Author in this write up pens down the procedure to incorporate a company with a foreign subscriber.

1. Introduction

The Memorandum of Association and Articles of Association are the two vital documents of any company that describe the constitution and govern the internal management of such company. The memorandum confirms that the subscribers signing such document wish to form a company and agree to become the first members of the company. Subject to the sectoral cap applicable on foreign investments by persons resident outside India and non-resident holding limits applicable to an Indian company, the entire share capital of a company may be held by non-residents. There is no restriction on a non-resident being a subscriber to the Memorandum of Association, in case of a company having share capital. Here we will discuss about the procedural aspects in that regard, in case of a private company having share capital.

2. SPICe+ for incorporation of new company

One can apply for reservation of name of company by filling requisite details in Part A of Form SPICe+. Part B represents the section wherein all remaining details required for incorporation of a company has to be entered.

Part B requires following particulars to be filled:

(i) Structure of the Company : It includes details of authorised and subscribed share capital and their break up, details of number of members.