Objects Clause for a retail chain company like Reliance Fresh/Tanishq...

[CS. Dattatri H M]

Dear Friends,

 

Whether any one of us is having Objects Clause for a retail chain company like Reliance Fresh/Tanishq/Subhiksha etc? If can can it be shared please? 

 

Thanks & Regards,

 

Dattatri

[Vivek Hegde]

Dear Mr. Dattatri

 

Hope following clauses wil suffce ur requirement.

 

1.         To carry on business of rendering all kinds of support services required by the retail outlets/industry of all kind like management and assisting in the maintenance of inventory control, purchase orders, product sourcing, invoicing, maintenance of day to day accounts and the like to all kinds of retail entities whether companies, firms, proprietorship concerns, individuals and others in whatever form and retailing any kind of product.

 

2.         To carry on business as agents, distributors and dealers of all kinds of products for the retail industry and especially relating to garments, infant clothing, infant food, infant products and others.

 

3.         To undertake designing, establishing and developing on a turn key basis retail outlets for all kinds of products including franchisee outlets of all products especially infant related products, garments, books and the like for and on behalf of third parties and anywhere in India.

 

rgds

 

Koramangala, Bangalore-560034
Mob: 9019756940

[Shruti Agarwal]

sir is their any specific procedure to be followed for such type of companies??

--
Regards

Shruti Agarwal
Practicing Company Secretary
Kanpur
09305837711

[CS. Dattatri H M]

Dear Mr Vivek,

 

That was quite fast - at lightning speed! 

 

Thank you so much, 

 

Best Regards,
Dattatri

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From: csmy...@googlegroups.com [mailto:csmy...@googlegroups.com] On Behalf Of Vivek Hegde
Sent: Thursday, July 23, 2009 4:59 PM
To: csmy...@googlegroups.com
Subject: [CSMysore] Re: Objects Clause for a retail chain company like Reliance Fresh/Tanishq...

[Vivek Hegde]

Dear Ms Shruti

 

There is no special procedure as such. But for FDI there is a rstriction. It falls under approval route. Single Brand retailing is allowed only upto 51% i believe.

 

Also for retail Support Services there is no restriction which is not core retail.

 

But back door  entry from foreign Retail Gaints is the order of the day. It may be thru' franchising (which defeats the intention of the legislators..)

 

Members correct me if i am wrong.

 

rgds

 

Koramangala, Bangalore-560034
Mob: 9019756940

[CS. Dattatri H M]

Dears,

  

The FDI in retail business in India is permitted up to 51% with Prior Government Approval for retail trade in ‘single brand’ products only. The detailed guidelines issued by the GOI vide press note 3(2006 series).

 

 Press notes 2, 3 and 4 in February 2009 have made a swiping change in this situation. The press notes simplify the method for calculating FDI and broadly state that as long as Indian promoters hold a majority stake (more than 51 per cent) in any operating-cum-investing company, it can bring investment up to 49.9 per cent through FDI. This company would be treated as an Indian company and it can invest through a joint venture in any other company that may be engaged in industries in which FDI has a sectoral limit. Several companies like retailer Pantaloon and media house UTV have restructured their organisations to raise FDI in their businesses through step-down joint ventures — FDI is prohibited in multi-brand retail and is restricted to 26 per cent for media  (http://www.business-standard.com/india/news/rbi-government-dividedfdi-relaxation-in-press-notes/356331/)

 

“In one sweep, therefore, any sectoral cap of 49 per cent and below has become meaningless in so far as downstream investment by a company with foreign investment below 50 per cent and qualifying as an Indian owned and controlled company,”  However, RBI has raised an objection to this.

 

Thanks & Regards

Dattatri 

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From: csmy...@googlegroups.com [mailto:csmy...@googlegroups.com] On Behalf Of Vivek Hegde

Sent: Thursday, July 23, 2009 5:13 PM
To: csmy...@googlegroups.com
Subject: [CSMysore] Re: Objects Clause for a retail chain company like Reliance Fresh/Tanishq...