India is one of the top growing economy in the world in the last decade Foreign Direct Investment by Foreign Nationals and foreign companies has increased significantly. Every Foreign Entity/ Nationals who intends to setup company in India has to follow the Indians Companies Act, 2013, Foreign Direct Investment Policy (FDI ) and Sector, Goods and Services Tax Act, Income Tax Act and Sector Specific Rules and Regulations like healthcare Company needs drug licences etc.
Investing in India by foreign entities into India is subject to FDI Policy, In India FDI policy has two different routes
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Automatic Route
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Approval Route
#1. Automatic Route : In this route prior approval of Government is not required , only intimation is required to RBI in the Form FC-GPR , FDI Policy provides sectors where FDI is allowed at what percentage of Equity Capital of the Company.
#2. Approval Route : This is route prior approval of government is required, where FDI is allowed under approval route under FDI Policy.
Setting up a Company in India by Foreign Nationals / Foreign Companies entering Indian Markets :
In the recent times Indian has made much simplification process in registering or setting up company in India, Here is step by Step guide on setting up company by Foreign Nationals :
#1. Getting the Documents Notarized and Apostle:
Indian companies Act requires that the Documents for foreign Directors and Foreign Investor or Shareholders should be noterised and Apostle, Documents may also be signed in India if the applicant is in India on Business Visa. Documents of foreign entities like 1. Certificate of Incorporation 2. Charter documents like MOA AOA, 3. Resolution by Board of Directors of Foreign Entities should be all in English Language and certified translated copy in English copy along with Noterised and apostle.
#2. Indian Resident Director:
Indian companies act requires that every company in India should have at least on resident Director who is resident in India during the financial year, we at Fastlegal provides resident Director appointment services in India, you may avail our services if you do not have your own person.
#3. Registered Office Address for Company :
Every Company in India should have Registered Office Address situated in India, you need to have one place as registered Office address. Fastlegal helps in getting the registered Office address.
#4. Name Approval Application
Company name approval application is required to be made for availability of name of company, the company nme should be unique, no other company or LLP or trademark should be already there.
#5. Digital Signatures of Directors and Subscribers:
We need to obtain digital signature in the name of Directors and shareholders from certifying authorities in India , Fastlegal team members helps in getting the DSC. DSC are required for signing the incorporation documents that are required to be submitted to Registrar of companies.
#6. Application for Incorporation of Company :
Once all the required documents of foreign nationals and Indian Resident Director is fine and digital signatures have been obtained than incorporation application is required to be submitted. All applications are verified by the registrar of companies and once he is satisfied with all the particulars of the application, he MCA issues certificate of incorporation to company.
#7. Company Bank Account :
Once we get the certificate of incorporation, we need to proceed to open a bank account in the name of the company.
#8. Funding of Subscription Money into company bank account :
Now subscription money for equity capital is required to be invested into the company by the subscribers to the company.
#9. Reporting of Inward Remittance to RBI within 30 days of receipt of money
#10. Filing of Form FC-GPR to RBI
#11. Application for GST Registration
Documents Requirements for setting up Company in India by Foreign Nationals :
Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors.
For companies it will be :
- Certificate of Incorporation,
- Memorandum of Association ,
- Articles of Association,
- Board Resolution duly passed for entering and forming Company in India and
for Foriegn Directors :
- Passport Copy,
- Driving Licence and
- Current Address proof in the form of Bank Statement is required.
Please email us at mail@fastlegal.in or place your request below for your company formation requirements in India
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