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Question No. 35
In which of the following business set-ups in India, foreign ownership/stake is permitted?
O None of the above
O Sole Proprietorship
Partnership Firm registered under the Indian Partnership Act, 1932
O A Company
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Answer:
o solo pisudj
Explanation:
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In India, Foreign ownership/stake is permitted in a company
- In India, a company formed in accordance with the Companies Act of 2013 may have foreign ownership or a share in it.
- This implies that a foreign national or a foreign business can own stock in and participate in the ownership of an Indian corporation.
- A foreign business or individual looking to invest in an Indian firm must adhere to a number of rules and laws.
- Companies with overseas investments must also submit reporting obligations. Direct foreign investment or foreign portfolio investment are both options for foreign ownership of an Indian firm.
- Further, the foreign firm may own equity shares in the Indian company in the event of direct investment.
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