India is one of the best countries in the world to start a business. It is quite easy to list out the advantages that India as a nation offers for foreigners to set up business here. Apart from Massive Population, infrastructural ease, business-friendly laws, consistently growing economy and many others benefits can attract foreigners to start and expand there business in India. Biz Register India is the only professional firm in India to help foreign clients in all requirements which are compulsory to incorporate company in India ( For e.g. :- 1 Local Indian Resident Director, Registered Address and Assistance in Opening Bank Account).
Incorporation of a Private Limited or Limited In India :-
Incorporation of Private Limited is the easiest and fastest type of India entry strategy for foreign nationals and foreign companies. Foreign direct investment of up to 100% into a private limited company or limited company is under the automatic route, wherein No Central Government permission is required. Hence, incorporation of a private limited company as a wholly owned subsidiary of a foreign company or joint venture is the cheapest, easiest and fastest entry strategy for foreign companies and foreign nationals into India.
Incorporating a Private Limited Company in India as a foreigner involves several steps and requirements. Here’s a general overview of the process and we at Biz Register India is available for our foreign clients at every stage for incorporation of business :-
1. Choose a Unique Company Name:
- You need to choose a name that is unique and complies with the guidelines set by the Ministry of Corporate Affairs (MCA).
- The name should reflect the business activities and should not resemble an existing registered name.
2. Obtain Digital Signature Certificate (DSC):
- A DSC is required for all the directors of the company to sign electronic documents with the Ministry of Corporate Affairs.
- It’s essential for the e-filing process.
3. Obtain Director Identification Number (DIN):
- Every director of the company needs to apply for a DIN, which is a unique identification number.
- Foreigners can apply for a DIN online via the MCA portal.
4. Appoint a Director and Company Secretary :-
- A Private Limited Company must have at least two directors, and at least one of them should be a resident of India (i.e., someone who has lived in India for at least 182 days in the preceding year). Biz Register India is the only professional firm in India which provides 1 Resident Director for foreign clients so all basic requirements to start business in India can be fulfilled easily without any delay. You only need to contact us for starting of business in India and we will arrange all requirements for you.
- A Company Secretary is required if the company has more than a certain number of shareholders or if it’s a listed company, but it’s optional for small private companies. Biz Register India have professional team of Chartered Accountants and Company Secretaries in India so you don’t need to worry about regular compliances and requirements of law.
5. Registered Office Address:
- You must have a registered office in India for the company. This can be a commercial or residential address. Biz Register India provide registered address service to clients so they don’t need to worry about lease agreement and address proof requirements.
- The address will be used for all correspondence from the Registrar of Companies (ROC).
6. Foreign Direct Investment (FDI) Compliance:
- Foreigners can invest in India through the FDI route. For most sectors, FDI up to 100% is allowed under the automatic route, but there are certain sectors where prior approval from the government is needed.
- The Foreign Exchange Management Act (FEMA) governs FDI in India, and it is important to check whether your business activities fall within the permitted sectors for FDI.
7. Incorporation Documents:
- You need to file the following documents with the MCA:
- Memorandum of Association (MOA): This outlines the company’s objectives.
- Articles of Association (AOA): This defines the company’s internal rules and regulations.
- Proof of Identity: Passport or other government-issued ID of the foreign directors.
- Proof of Address: Utility bills, rental agreement, or property papers.
- No Objection Certificate (NOC) from the landlord if the office is rented.
8. Bank Account and Capital Investment:
- You need to open a company bank account in India and deposit the required minimum capital, which varies based on the type of business.
- The initial capital is generally low for private companies but it must be consistent with the company’s business requirements.
9. File Incorporation with the MCA:
- After submitting all necessary documents and fulfilling compliance, the application will be reviewed by the ROC.
- If everything is in order, the ROC will issue a Certificate of Incorporation, and the company is officially registered.
10. Comply with Tax Requirements:
- After incorporation, the company must apply for a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).
- Additionally, the company will need to register for Goods and Services Tax (GST) if its turnover exceeds the prescribed threshold.
11. Ongoing Compliance:
- Foreign-owned companies must file annual returns and financial statements with the ROC.
- They must also comply with the provisions of the Companies Act, 2013, and the regulations of the Ministry of Corporate Affairs (MCA).
Key Considerations:
- Language: All documentation must be in English.
- Local Presence: One of the directors must be a resident in India.
- Legal Structure: It is important to choose the right legal structure for your business (Private Limited, LLP, etc.) depending on the scale and nature of the business.
It’s highly recommended to work with a professional, such as a company secretary or a legal firm specializing in company incorporation, to ensure compliance with all regulations and streamline the process.
Let us know if you’d like more details on any specific part of this process!
