tag:blogger.com,1999:blog-3202774368551476669.post1750750403923921172..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: Foreign Investment in the Small Scale SectorUmakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3202774368551476669.post-45090845856660758002009-07-01T13:30:30.650+05:302009-07-01T13:30:30.650+05:30Rahul, there is a list of industries that are rese...Rahul, there is a list of industries that are reserved for the small scale sector. Please see para. 2.3 of the FDI Manual (http://dipp.nic.in/manual/FDI_Manual_text_Latest.pdf). Foreign investment in small-scale units is available only up to 24%. Hence, in your example of the wholly-owned subsidiary, the company may cease to be entitled to small-scale status as the foreign investment exceeds 24%. See para. 1.25 of the FDI Manual.Umakanth Varottilhttps://www.blogger.com/profile/12438677982004444359noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-73814852833434204822009-06-25T15:18:43.516+05:302009-06-25T15:18:43.516+05:30The MSMED Act has classified enterprises as micro,...The MSMED Act has classified enterprises as micro, small or medium based on their investment in plant and machinery. There doesn't seem any other criteria for classification, nor do there seem to be any exeptions.<br /><br />Can a 100% Wholly Owned Subsidiary (WOS) of a foreign company be categorised as Small or Medium Scale based on the investment of the WOS in plant and machinery? Put differently, is there any provision of the law, or any other law, that prevents a WOS of a foreign company from being recognised as small or medium?Rahul Moghenoreply@blogger.com