By IANS
Ahmedabad : Nirma Ltd announced Friday that it has formed a wholly-owned subsidiary in Delaware, Ohio, to execute the acquisition of US soda ash producer Searles Valley Minerals Operations Inc and Searles Valley Minerals Inc.
The entity has been named Karnavati Holdings Inc, according to a communication by the company to the Bombay Stock Exchange.
When contacted for details, Nirma’s the company secretary described the float as a “strategic step” to complete the acquisition.
He told IANS that the incorporation was in accordance with an “agreement entered into with the company to be acquired.”
He however said he could not say at this time whether the subsidiary’s role will be limited to the current acquisition or it will continue to be in operation.
A compelling array of benefits will accrue to Nirma, which are available to Delaware business owners, such as privacy, tax savings, convenience and flexibility, thus saving on total costs of acquisition.
Besides, there are no minimum capitalisation requirements in Delaware.
Delaware is one of the least expensive states in the US in which to form corporation. It allows one individual to act as the shareholder, director and hold all the executive offices.
Also, Delaware limited liability companies and corporations can be headquartered anywhere in the world and company records do not need to be physically located in Delaware.
More than 800,000 business entities have their legal home in Delaware, including more than 50 percent of all US publicly traded companies and 60 percent of the Fortune 500 firms.