How To Register A Foreign-Owned Company In India?
India with an increasing economy and favorable policies has become a hub of foreign investments, providing an opportunity a foreign investors to venture into India for business. If you’re a multinational corporation or a startup entrepreneur, it becomes imperative that you know about the whole process of company incorporation in India. In this blog, we will discuss everything that you need to know about the process of registering a foreign owned company in India including options such as Pvt Ltd Company Registration, OPC Registration, LLP Registration, and how to register a partnership firm.
Nature of Foreign Investor Corporate Forms in India:
Before diving into the registration process, it’s essential to understand the different types of entities a foreign investor can choose from:
1. Private Limited Company (Pvt Ltd): A Pvt Ltd Company is the most popular type of company for the foreign-invested company in India and it offers only limited liability, a separate legal entity, and the facility of transferring shares.
2. One Person Company (OPC): OPC registration is suitable for the one person company owner and allows a foreign national to start a private limited company that will safeguard his/her assets which she/he can contribute to the company with very little risk of exposure under simple regulatory regimes.
3. Limited Liability Partnership (LLP): LLP Registration brings together the advantages of a partnership, without the disadvantages of a private limited company. Partners in it enjoy limited liability and it is often preferred to be used for service businesses.
4. Partnership Firm: Despite foreign investors being limited in the partnership, they are still less popular when compared to a partnership firm registration scheme because there is unlimited liability for partners and because this is a good choice for small scale operation.
5. Branch Office or Liaison Office: While a Pvt Ltd might be on the expensive side, foreign companies can make a branch or liaison office to perform certain activities like marketing or export/export import-related issues.
Registering a Foreign Owned Company in India:
1. Choose the Type of Entity
Selecting the best business structure is the first step in company incorporation. According to the nature of your business, liability concerns, and compliance requirements, choose the form. For example, Pvt Ltd Company Registration is generally picked to scale upwards and build credibility.
2. Get Digital Digital Signature Certificate (DSC)
To register your company online, the directors and authorized signatory must acquire a Digital Signature Certificate. It is necessary for e-filing with the Ministry of Corporate Affairs (MCA).
3. Get Director Identification Number (DIN)
All directors have a unique identification number known as the DIN from the MCA. Mandatory for both Indian and foreign directors, this step takes place.
4. Reserve a Company Name
There is no business without a name. The name may be reserved by using the RUN (Reserve Unique Name) service on the MCA portal. Make sure that the name satisfies the Companies Act, 1965 rules.
5. Draft MOA and AOA
The company's aims are defined in the Memorandum of Association(MOA), and the control to which the rules of internal management of the company shall conform are set out in the Articles of Association (AOA). It is important for Company Incorporation that these documents are critical and must vary according to your business requirements.
6. File for Incorporation
Simplified Proforma for Incorporating a Company Electronically form on the MCA portal. This form is an all encompassing form incorporating company registration, PAN and TAN application, and other registrations.
7. Get the Incorporation Certificate of Approval
When the MCA verifies your application and their documents, they will issue a Certificate of Incorporation. It is the official beginning of your company.
Standard Listing as Apply to Foreign Controlled Firms:
After successful company incorporation, foreign-owned businesses in India must adhere to the following compliance requirements:
Annual Filings: The returns that shareholders are required to submit to the MCA include the financial statements and the annual returns.
Tax Compliance: The payment of taxes of the corporates, payments of Goods and Services Tax as well as other relevant taxes on time.
Also Read This - Transforming Corporate Image By Pvt Ltd Registration
Benefits of Incorporating a Foreign-Owned Company in India:
1. 100% FDI Allowed in Many Sectors: India allows 100 % FDI through automatic routes in different sectors; therefore it becomes the suitable option to register Pvt Ltd Company in India.
2. Access to a Large Market: Currently pegged at over 1.4 billion consumers, India remains the largest market for all sorts of products and services.
3. Limited Liability Protection: In the initial LLP Registration and a Pvt Ltd company, the investor or shareholders have limited liabilities that protect their other assets.
Why LegalRaasta for Foreign-Owned Company Registration?
Business regulation in India has been regarded as complex, especially for anyone from the outside attempting to start a new business. And that is where LegalRaasta comes into play. To support our clients, our legal team breaks down the entire process to make it easier to choose between Pvt Ltd Company Registration, OPC registration, LLP Registration, or registering a partnership firm. We will take care of your paperwork needs, and everything related to documentation, compliance, and more without any inconvenience to you.
Conclusion
Opening a company in India as a foreigner is a good investment that opens incredible opportunities for growth. However, it involves so much planning and needs to be followed by the laws of India. It is always helpful to seek the advice of professionals before incorporating a Pvt Ltd Company or registering a partnership firm or any other business form.
We at LegalRaasta provide service company formation in India and offer unmatched support to help your business venture begin on a correct note. LegalRaasta is ideal to consult for those wanting to begin their business in India, reach out to us today.
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