Foreign Company Registration

Business Advisory & Business Consulting : India Entry Operations


India has become Associate in Nursing more and more engaging attractive destination for doing business. Foreign Direct Investment has been on the increase with a growing range of international businesses staring at establishing operations at Indian Entity.

Whether you're trying to expand your existing operations within the country or attending to come upon in the Republic of India, we offer a one-stop resolution and appendage our Clients through the intricacies of the method. Besides our ability in accounting and tax, our strength lies in the ability to be your business and industrial advisor / partner and managing your entire entry arrange for the Republic of India as a comprehensive project.

We can assist you with all that has to be done whereas getting into Republic of India right from marketing research, substantiate your business plans & policies, choosing the proper kind of entity, structuring your investment, providing regulative and tax consolatory, reconnoitering for a location and effort land, hiring the right persons for obtaining you connected with the proper vendors, observance them still as distinguishing potential venture or acquisition opportunities for your inorganic growth.

Our expertise and sensible and industrial understanding of India equip us to assist you with success establish operations in India. Through our services, we offer your business with tremendous support and care. we tend to be here to suppose for you and act for you.

Foreign investment in India is governed by the ministry of commerce and Industry and by the department of Industries policy. Foreign Investment in India is governed by the government policy and not 100% investment is allowed in all the sectors in India.

Foreign Company Registration in India – India Entry Strategy

Preamble

India being a premier hub attracting foreign investment from foreign companies, foreigners & NRI’s. Indian is among one of the fast growing economies of the world thereby creating plenty of business & investment opportunities for not only Indians but also a foreign nationals. The impact of Rapid Globalization and efforts made in the direction of “Made in India & Make in India” & with easing of regulatory reforms in FDI’s & investor friendly climate & encouraging government initiatives is a way forward to create & retain foreign investment , technology & capital. It takes a minimum 2 directors to form a Company .

Companies Act, 2013, defines a foreign company as : .
Sec 2 (42) of the Companies Act 2013 defines a Foreign company as:

A foreign company is any company or body corporate incorporated outside India which-
a) Has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
b) Conducts any business activity in India in any other manner.

A foreign company can enter the market of India and set up business operations in India by following:

  1. As Indian Company
    • Wholly Owned Subsidiary
    • Joint Venture
  2. As Foreign Company
    • Setting up a Liaison Office
    • Representative Office or a Project Office or
    • A Branch Office of the foreign company

Activities undertaken by the Foreign Company

  • Providing IT services and Developing software in India.
  • Providing technical support for products supplied by the parent
  • Foreign Airline/ Shipping Company.
  • Import & Export of goods.
  • Providing professional or consultancy services.
  • Carrying out research work in area which its parent company is engaged
  • Promoting technical/financial collaborations on behalf of the parent
  • The representing parent company in India and acting as buying/selling agent in India.

  • 100% Subsidiary of a Foreign Company – “Under Sub Header”

    A foreign company can invest 100% FDI in Indian company through automatic route then it becomes Wholly Owned Subsidiary Company of that Foreign Company.
    It is an entity whose whole share capital is in the hand of a foreign corporate body. It can be

    Joint Venture

    It is a rendezvous wherever 2 or additional parties work to attain an advert object or run a business. it should take numerous forms like Company, LLP, partnership etc. it is often on a protracted term basis like running for permanence or for a restricted time supported the article. It will involve a completely new entity or existing business. hence it's a really versatile conception.

    If any foreign partner or NRI is concerned during a venture it needs governmental approval either from RBI or FIPB. Approval from RBI must be taken if FDI falls under the Automatic Route. In the other case, approval from FIPB is critical.

    The entity must choose an local / Area partner with whom they would like to enter into venture along with a Memorandum of Understanding(MOU) or a Letter of Intent(LOI) is to be signed which can state the idea for the venture agreement. All the terms ought to be mentioned completely and negotiated and should be in step with regional likewise as the law of nations. It ought to address the vital matters like Dispute resolution agreements, Law Applicable, Purpose of Venture Holding shares, Holding shares, Transfer of shares, Board of Administrators Non-Compete, Confidentiality etc.

    Setting up a Liaison Office or Representative Office

    Reserve Bank of India the country Central Bank establishes the criteria & norms governing the setting up a Liaison office or representative office in India.

    1. The foreign Company need to have a profit creating record within the immediate preceding three monetary years within the home country and their net value should not be less than USD 50,000/=

    2. A subsidiary of alternative company that doesn't satisfy the on top of condition will submit a letter of comfort from their parent company if the parent company satisfies the on top of condition.

    1. The entire expenses of the Indian Entity are to be met entirely through inward remittances of exchange from the Parent Company workplace outside Indian Entity.

    2. It needs a exclusive approval of run under FEMA Act 1999 additionally as approval from the Insurance Regulatory and Development Authority (IRDA).

    3. The application for establishing the Indian Workplace / Indian Office are going to be forwarded by the foreign entity to run through a chosen Authorized / Approved Dealer Category–I Bank

    4. Needed documents ought to even be filed with application as well as associate English version of the Certificate of Incorporation/Registration with MOA & AOA. Duly Attested / Certified by the Indian Embassy/Notary Public within the Country of Registration, along with Latest Audited Financials Statements / Records of the applicant entity.

    5. The workplace are going to be given a novel identification number by the country Central Bank viz Reserve Bank of India called Unique Identification Number. It's to get Permanent Account Number from tax Authorities once putting in place the workplace in Asian country.

    Business Support Services:

    If you're establishing operations in India, we will offer a back workplace for accounting, payroll, tax and other regulative compliances. We’ve got the attitude of helping a corporation of any size – we've got helped cut back value and improve potency by turning into the finance and accounting (F & A) team for small to massive Indian firms additionally as overseas firms.

    Our Business Service Model is flexible & Adoptive & designed to suit & structure your inherent requirements. We offer you’re the support services to integrate with your business functionality say in case If you are a small subsidiary of a foreign company in India, we can become your Chief Financial Officer and your in-house accounting team while you focus on your business.

    As your business grows and complications increase, you can retain us to support you. While you may hire your own financial controller, we would continue to handle all processes. In this way, we can support your business right from the start through the growth phase, for as long as you require.

    We could also assist your company in set up of your own F&A team by helping you hire the right people and designing the necessary systems for you. If you are an overseas business but want to manage your accounting and tax activities from India, we can assist you with that.

    We work with family businesses to professionalize, little businesses to implement operational plans for fulfillment and medium organizations eager to reconstitute to remain relevant, vice and grow productively. It is a known fact that One of the key components of a successful organization is its ability to develop and setup efficient accounting systems that keep track of and guide the flow of finance and management information.

    Our Exclusive Services:

  • Customized Engagement Mandate
  • Market Research Analysis
  • Handheld Support Compliance Services
  • Connectivity to Shared Offices / Virtual Offices
  • Referrals to Bankers
  • Phone On Call –Support Services
  • Attention to Business Process & Process Details
  • Management Information Reports (MIS) Reports
  • One Stop Consulting on all Accounting & Tax Compliance Matters
  • It will undertake following activities :

  • Representing parent company in Indian Entity
  • Promoting import/export in Indian Entity
  • Promoting technical/financial collaborations on parent company behalf
  • Coordinating communications between parent/group firms and Indian entity.
  • It cannot undertake any enterprise and can't earn any financial gain in Asian country.
  • Project Office

    RBI prescribes the putting in place of Project workplace in India by a distant company.
    1. A distant company will establish workplace in India without the prior permission from RBI only if they need to be secured a contract from Associate in Nursing Indian company to execute a project in India and
    2. The Company set up in India is funded directly by inward remittances from its Parent Company abroad or
    3. Either it's funded by a Bilateral Agreement or Tri Lateral Agreement or Multilateral International Funding Agency or it has been cleared by Appropriate Authority or
    4. a corporation or entity in India providing the contract has been granted Term Loan by a Public Institution or a Bank in India for the project
    5. If the higher than conditions don't seem to be met the foreign entity should approach the Reserve Bank of India for the approval.

    Foreign Company Establishing A Branch Office in India

    A Foreign company can conduct business activity in India by opening a branch office with the prior approval of RBI.
    1. There is no restriction as the Foreign Company can either be engaged in Manufacturing or Trading Activities.
    2. The Profitability Criteria & Net Worth Criteria of the Foreign Company is that it should have a profit in the immediately preceding five financial years and should have a net worth of not less than USD 100,000 in its home country.
    3. The subsidiary company of other if does not fulfill the above condition then they can submit a Letter of Intent or Letter of Comfort from their parent company if parent company fulfils the above condition
    With the Gateways for FDI Investment is opened for 100% the raising Opportunities in Ecommerce Sector for Investment is tremendous & overwhelming.
    A Private company limited by guarantee or shares or an unlimited liability company

    Documents required

    1. Address proof of the office and if accommodation is rented then latest electricity bill.
    2. For Indian citizen
    3. PAN card mandatory
    4. Address proof
    5. Photograph ID proof like passport, Aadhar Card or driving license.
    6. For foreign national
    7. Passport mandatory
    8. Address Proof
    9. Photograph ID Proof like any government license or document containing name in full, photo and date of birth.)
    10. Documents submitted must be certified by the Indian Consular or consulate.