Wednesday, 5 November 2014

When can a company called ‘associated enterprises?’

When can a company called ‘associated enterprises?’

According to sections 92, 92A, 92B, 92C, 92D, 92E and 92F, a company can be termed as an associated enterprise with respect to the other enterprise, under the following conditions:

·        If the particular company is involved directly or indirectly or with the help of one or more intermediaries in the management, control, or the capital of the other company.

If any person/persons of the respective company who is/are involved directly or indirectly or with the help of one or more intermediaries in the management, control, or the capital of one company is/are involved directly or indirectly or with the help of one or more intermediaries in the management, control, or the capital of the other company.

A minimum of 26% share holding in any of the enterprises is required. One enterprise shall be resident and another entity shall be non-resident normally.


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