Among the top emerging economy of the world and with lots of natural resources and easy availability of manpower makes India big investment destination, For Setting up business in India by Foreign Companies Indian Companies Act, approval from Sectoral regulator is required and Conditions of Foreign Direct Investment Policy (FDI) is required i.e. Every Foreign Company starting business activity in India has to follow the Indians Companies Act, 2013, Goods and Services Tax Act, Income Tax Act and Sector Specific Rules and Regulations like healthcare Company needs drug licences etc.
Investment in India by Foreign Company will be in accordance with FDI Policy in India , so we are required to check out the required permission ( how much FDI is allowed in India for particular Sector ) under the Foreign Direct Investment (FDI ) policy , If we take an example of Technology Company , FDI policy permits 100% FDI policy under Automatic route.
1. Automatic Route
2. 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 Business in India by Foreign Companies:
With the Increase ranking of India in ease of doing business , Company Incorporation Process is the main reason due to governments efforts on simplification process in registering or setting up company in India, Here is step by Step guide on setting up company by Foreign Companies :
#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
- Certificate of Incorporation
- Charter documents like MOA AOA,
- 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 :
Company bank account is now mandatory Opened along with Incorporation application , Indian Company may open separate Bank Account also.
#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.
#09. Filing of Form FC-GPR to RBI
#10. Application for GST Registration
#11. Filing of Business Commencement Application to ROC
Once the Subscription money is entered in Companies Bank Account , company is required to file business commencement application to Registrar of Companies online
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 [email protected] or place your request below for your company formation requirements in India