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A Fine Balance: A Perspective on recent RoC Orders

Introduction

India is in its “vocal for local” and “ease of doing business” (“EoDB”) era. Yet the slew of show cause notices and penalty orders the jurisdictional registrar of companies (“RoC”) has issued against Indian companies and its directors in the recent past[1] for alleged non-compliance of significant beneficial ownership (“SBO”) disclosures,[2] corporate social responsibility (“CSR”) contributions,[3] etc. under the Companies Act, 2013 (“Companies Act”), reflect the need for a well-balanced system.Continue Reading A Fine Balance: A Perspective on recent RoC Orders

Competing to be the global ‘destination of choice’ for GCCs: Karnataka attempts to set the global standard with a first-of-its-kind GCC-centric policy

Background

Global capability Centres (“GCCs”) have taken centre stage today because of their contribution towards the growth and expansion of multi-national corporations (“MNCs”) and towards boosting the economic growth of many developing countries in which they are located.[1] These centres are set up to primarily take on a service role for the global group of the MNCs. Evolving from back offices and cost-arbitrage centres, GCCS have transformed into potential alternative technological and strategic development headquarters. Today, many regions in developing economies, including in India, have started competing to establish themselves as a GCC hub and emerge as a “destination of choice”. Given the transformative role GCCs play in job creation, technology advancement, and skill enhancement, and positioning India at the forefront of innovation and service delivery, many GCCs in India are vying for that spot. With an estimated 1,700 GCCs engaging 1.66 million employees to generate an annual revenue of USD 64.6 billion, India qualifies as a “tried-and-tested” GCC-friendly ecosystem. In the backdrop of India’s “techade”, the market size of the country’s GCC ecosystem is projected to surpass USD 100 billion, which could propel India to achieve its ambition of becoming a USD 1-trillion economy.Continue Reading Competing to be the global ‘destination of choice’ for GCCs: Karnataka attempts to set the global standard with a first-of-its-kind GCC-centric policy

GCC Series: Setting-up Global In-house Centres (GICs) in India: Key regulatory considerations

In part VI of our series on key legal considerations for establishing global capability centres (“GCCs”) in India,[1] we discuss global in-house centres or GICs that precede and are a variant of current GCCs.Continue Reading GCC Series: Setting-up Global In-house Centres (GICs) in India: Key regulatory considerations

Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?

Background

The genesis of the concept of ‘significant beneficial ownership’ under Indian law can be traced to the Financial Action Task Force (“FATF”) recommendations on issues pertaining to ‘transparency and beneficial ownership of legal persons and arrangements’. Set up in 1989, the FATF is a global inter-governmental body, now serving as a watchdog for global money laundering and terrorist financing. Continue Reading Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?