Note: As this circular is about inviting companies of foreign origin for the regularization of establishment, definitely Speak Asia Online Pte. Ltd. also falls into this category. The Company has got a chance for representation and regularizing its establishment in India. One unique fact we can observe here that the things are rolling very very fast as far as government way of working is concerned. This gives us a sure hope that the regular business activities of SAOL will start soon.
NOTE : BizBasket’s expert teams suggestion to all direct sellers/network marketers and Speak Asians is, they should learn about the law governing the direct selling industry and judgments passed in this regard by various courts of laws. To become a successful Network Leader you must have in depth legal knowledge of the subject. We will keep on posting various articles related to legal cases concerning direct selling so that you gain knowledge from them and educated your respective teams and create informed Networkers in your team. We hope that our continuous effort will lay the foundation of healthy growth of direct selling industry in India.
Dear Speak Asians,
- In the history of Direct Selling throughout world it has happened just second time when any Company has fought so vigorously against all establishments. The only precedence is Amway Corporation, USA which fought tooth and nail in year 1974 and made sure a legislation enacted to regulate direct selling in USA in year 1978.
- In Indian Direct Selling history it is the first time when Ministry Of Company Affairs(MCA), Registrar Of Companies(ROC), Reserve Bank Of India(RBI) and other Government institutions have been forced to look into the matter and issue a clear cut guideline for this industry.
- As said in the pop up media, NGOs and others are able to harass SAOL just because there is no law in our country regulating direct selling industry perfectly. There is only one law enacted which throws some light on this industry and that is “Mischief Of Prize Chit Fund And Money Circulation Act, 1978″. This law dates back to year 1978 and is unable to handle the issues in direct selling industry arising particularly after the pace became very fast because of Internet.
- In our opinion, now the only solution which the SAOL has is “The Legal solution”. Until and unless there will be a legal judgement in favor of SAOL, it will be at the mercy of the media, NGOs, Govt. Depts., Politicians and competitors.
- The Company is legally very very strong and hired one of the best legal firms in India, A. K. Singh & Associates, New Delhi. It has not violated any law of the land till date that is why standing on a firm legal ground and 100% sure to win this lengthy battle.
- The honorable High Court of Hyderabad [restrained harassment or arrest of any official or employee of our Company against a complaint made by an NGO (Criminal Petition 5626/2011)] and the Honorable High Court of Bombay [directing the Reserve Bank of India to give SAOL a hearing to understand its business model "expeditiously" (Writ Petition (L) No. 1365/ 2011 - SAOL & Ors. vs. Reserve Bank of India). ], has passed the respective judgments in favor of SAOL (Please see the judgement page of Honorable Bombay High Court attached with this article).
Facts about Permanent Establishment(PE) of Speak Asia in India – BizBasket Exclusive Research
(1) 1[ ] Sections 592 to 602, both inclusive, shall apply to all foreign companies.
It says that a Company incorporated outside India and having an established place of business in India in which 50% or more paid up share capital is held by Indians then provisions of those sections shall apply to such Companies also.
The limit of the foreign equity in an Indian Company is now increased up to 51% from the earlier 40%. In certain cases 100% foreign equity participation is also now allowed. The Government of India has entered into agreements with major foreign countries including USA for avoiding double taxation.
PROUD TO BE SPEAK ASIAN !!!