Necessary things about foreign company registration process India are 1. Register your business 2. Approval from ROC 3. Central bank
Many foreign investors have attracted on the opportunities of India and it is the fastest growing economies in the world with human potential along with big market over 1.2 billion people. Foreign company registration process India and its legal procedure for allowing foreigners starting business including export, import and manufacture business are not challenging and complexity. Each year the number of foreign companies are increasing with an impressive rate which have an intention to start business upon ideas for a long time in India. Registration of a company or establishing a branch office, these two types of entry strategy are allowed for any kind of company in India. Most of the foreign companies choose the formation of private limited liability company which is considered as the easiest and fastest type of India entry strategy in India. In terms of private limited liability company registration, no Central Government permission will be required. RBI provides the approval of branch office of the foreign company and the costing of registering a branch office is relatively higher than the costing of getting registered a private limited company in India. The foreign individuals may face problems to open a branch office, liaison office or project office in India because they are not allowed to open a branch office, liaison office or project office in India rather than the foreign companies.
Requirements for Establishing a Foreign Company in India
As foreign company registration process India, minimum 2 directors (directors should be both an Indian Citizen and Indian Resident) or shareholders (the shareholders could be persons or corporate entities) will be required to register any foreign or local company in India. A person will be considered as the citizen of India when he/she stay over 186 days. But in most of the cases, foreign companies prefer three directors, where two foreign nationals from the parent company and one director who is a local Indian citizen to form a legal entity in India. An Indian address is needed for registering the branch office of the foreign company and where the company will setup will also determine the legal jurisdiction applicable for the company which is recommended. Most of the foreign companies choose Delhi, Mumbai, Bangalore, Hyderabad, Chennai to setup their registered offices in India.
Documents required for company registration India
- Foreign directors of the company should submit the copy of their Passport and their address of own country. Besides, the license of drivers, bank statement should be submitted as proof to the authority and the all the documents must be notarized by a Notary in the home country or by the Indian Embassy in the country of the foreign Director.
- The Board Resolution of the foreign company will be needed if any corporate individual holds the share in the Indian Company. Besides, the certificate of incorporation of the foreign entity which should be notarized must be attached with the board resolution.
During the registration process, it is not mandatory to present the foreign directors in India and this is the simplest way for the foreign individuals or the company to register their company along with operating business in India.
Company registration cost in India
The cost for registering a foreign company is comparatively cheap considering the costing of other country and the total time of completing the registration could be taken within a few weeks.
Post Registration Formalities
The Indian Director will open a bank account under a company name and this is the foremost job for the post registration period because the Company must make Foreign Direct Investment reporting to the Reserve Bank of India. A legal or accounting professional will help to complete the procedure for reporting FDI inflow into the company which is considered as a simple procedure in India and at the same time this will ensure that the business follows all regulations in India and ready to operate their business in the Indian market.
Financial Statement of foreign company
To run the business properly, every foreign company needs to prepare financial statement which should be in accordance with Schedule III and the following documents should be included there.
- According to provisions of Chapter IX of the Act, all the documents will be needed to be annexed.
- Such documents are related to the latest consolidated financial statements of the parent foreign company should be submitted to the certain authority in India.
- Financial statement of the related party transaction where name of the person, or of any subsidiary or holding company of such foreign company or of any firm in which such foreign company or its subsidiary or holding company is a partner will be included. Besides, nature of the relationship, description and nature of transaction, amount and reason of transaction should be specified.Amounts of profits repatriated during the year along with recipients, form, mode and dates of the repatriation should be specified.
- Approval of the reserve bank of India will be needed
- Statements of transfer funds where date of the transfer, amount, mode, recipient of the fund should be specified
- Purpose of the fund must be mentioned because of getting approval of the Reserve Bank of India