Pursuing the mission of cracking down on shell companies and curbing money laundering, on September 20, 2017, the Government of India – Ministry of Corporate Affairs policy division – has notified the ‘Companies (Restriction on number of layers) Rules, 2017’ which restricts the number of subsidiaries for holding companies. The move will bring in major ramifications in Indian corporate structures. No company is permitted to have more than two layers of subsidiaries in India, with an exception of one layer of wholly-owned subsidiary/ies.
This new restriction applies to all companies – listed or unlisted, operating or non-operating – except specified companies such as banking companies, non-banking financial services, insurance companies …
Read the full article at: http://www.businesstoday.in/magazine/columns/shell-companies-crack-down-money-laundering-companies-rules-2017-subsidiaries-hold-companies-corporate-structures-wholly-owned-subsidiaries/story/262267.html