The Companies Rules 2017 could further hasten the flight of more entrepreneurs towards friendlier business jurisdictions like Singapore. A filing in Form CRL-1 is required within a period of 150 days, disclosing details of the subsidiaries in the holding structure beyond two layers. The Rules do not apply to banking companies, systemically important non-banking financial companies, insurance companies and government companies. Further, the Rules do not impose any restriction on Indian companies looking to acquire holding structures abroad beyond two layers, provided such structures are permissible under local law. The requirement under the Rules to file detailed data regarding holding structures from all companies along a holding chain is duplicative and will inundate the government with data, which requires time and effort to sift through and make sense of.

Source: Mint October 23, 2017 18:22 UTC