cs vinay mehta

GIST OF FOREIGN EXCHANGE MANAGEMENT (OVERSEAS INVESTMENT) REGULATIONS, 2022 Important Definition ·          “Control” means the right to appoint majority of the directors or to control management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders’ agreements or voting agreements that entitle them to ten per cent. or more of voting rights or in any other manner in the entity.   ·          “ Equity Capital ” means equity shares or perpetual capital or instruments that are irredeemable or contribution to non-debt capital of a foreign entity in the nature of fully and compulsorily convertible instruments.   ·          “ Foreign Entity ” means an entity formed or registered or incorporated outside India, includi...

 Following conditions are to be met for an entity to be considered as a start-up:   Turnover of the entity shall not exceed one hundred crore rupees for any of the financial  years. The entity must be a private limited company or a partnership firm or an LLP. Ten years have not been completed since the date of incorporation or registration. The entity should be working towards innovation, development or improvement of its  business with a high potential of employment generation and wealth creation.         Relaxations under Companies Act, 2013: As Start-up is initially a private company it can get all the exemptions available to Private Company under Companies Act, 2013. Besides above relaxations there are few other relaxations to specifically given to Start-ups under the Companies Act, 2013 which are as follows:   ·    In case a start-up receives an amount o...