Setting up a business in India by foreign nationals require registration of Foreign Subsidiary Company in India. India is among the best markets to Invest in the world, during the last two decades India has seen significant improvement of foreign capital in India. Many foreign entities want to start operations in India due to high market demand and ease of doing business, these companies are required to incorporate Foreign Subsidiary Company in India
Following things are to be considered while setting up Foreign Subsidiary Company in India by foreign entities :
- Setting up Foreign Subsidiary Company: Foreign Subsidiary will be formed as Private Limited/Public Limited Company and the holding foreign holding company will fund the shareholding. It may be noted that holding company can have 100% to have wholly-owned subsidiary including shareholding of nominee shareholders who will be a beneficial shareholder of the company. The investment limit will be in accordance with the FDI Policy of Government of India, where most of the sectors are under the automatic route.
- Requirements for Appointment of Resident Director: As per the requirements of the Companies Act, 2013 every Indian Company should have resident Director.
- Documents Requirements: 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 in case of Individuals
- Passport Copy,
- Driving Licence and
- Current Address proof in the form of a Bank Statement is required.
- Obtaining Digital Signature of Directors
- Obtaining Director Identification Number of Director
- Application for Approval of Name of Company, this must be unique
- Preparation of Incorporation Documents
- The signing of Incorporation Documents, this too should be notarised and apostle
- Application for Incorporation of Company to Registrar of Companies.
Once this application is approved by registrar we get Certificate of Incorporation along with PAN and TAN (Tax Number in India )
Opening of Bank Account of Foreign Subsidiary Company: Now bank Account is required to be opened in the name of the Company.
Infusion of Capital into Foreign Subsidiary Company: Now the Capital is required to be remitted to the bank account of the Company.
Intimation to RBI: Intimation to RBI is required to be given as a par FDI policy.
GST Registration: GST Registration is required to be obtained afterward.
Trademark Application: If the Company has its own product or brand trademark registration application is required to be applied for securing Companies Intellectual Property.
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