‘Shipping enterprises can buy ships abroad’
28 July 2014 6:13 AM IST
This decision is aimed at encouraging Indian Shipping companies to have their registered offices in India itself while allowing them to acquire further tonnage without forming subsidiaries out of India to own foreign flag vessels.
These firms register their ships abroad without actually opening their registered office or a subsidiary company there. This will enable Indian companies to have access to cheaper sources of funds abroad to acquire additional tonnage while not having to set up multiple enterprises abroad to acquire and maintain such tonnage. The policy, however, prescribes the additional tonnage that can be acquired and flagged abroad by these India-based enterprises is limited to the tonnage of the flagged ships already registered by them in India.
These firms register their ships abroad without actually opening their registered office or a subsidiary company there. This will enable Indian companies to have access to cheaper sources of funds abroad to acquire additional tonnage while not having to set up multiple enterprises abroad to acquire and maintain such tonnage. The policy, however, prescribes the additional tonnage that can be acquired and flagged abroad by these India-based enterprises is limited to the tonnage of the flagged ships already registered by them in India.
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