‘Unpaid shares’ in Dubai, BVI companies may come back to haunt many IndiansSeptember 5, 2022
Mumbai: An old, handy practice popularised by tax havens and sold by leading European banks is coming back to haunt many Indian businessmen.
Hundreds of them may be in for a nasty surprise for ‘owning’ companies in Dubai and other jurisdictions like the British Virgin Islands (BVI) by subscribing to shares without paying for the stocks.
Under the Indian Companies Act, a person is allotted shares only after full payment. While UAE Free Trade Zone (FTZ) rules require a minimum Many chartered accountants and consultants practising in the UAE don’t advise investors to chip in the amount using banking channels. However, the records of the UAE authorities show investment by an Indian resident.
“This trend of being a shareholder without having subscribed to the share capital (and without comply ..
This is because there is no record of fund remittance (from India to UAE) through official banking channels against the allotment of shares in Dubai