India is an open market and majority of sectors, foreign investment is allowed with repatriation benefits (the profit and investment is allowed to take back in investor’s currency). India has consistently been classified as among the most attractive investment destinations by reputed international rating organizations. With its highly-skilled and cost-effective manpower, it offers immense opportunities not only for Business Process Outsourcing, but increasingly for the higher end of the value chain in Knowledge Process Outsourcing and Engineering Process Outsourcing.
Foreign Direct Investment (FDI) is allowed in all most all sectors under automatic route (without previous approval of government). If proposed activity of an investor fall into an item marked for automatic route, the investors are freely allowed to setup Company in India for staring the business.
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How CompaniesInn Helps International Clients in setting up Companies in India.
CompaniesInn is a team of business setup professionals and corporate law professionals having over 10 years experience in business setup services and consulting. We have helped over 5000 companies in the last 3 years setting up of their business. Our vast experience in business setup services ensures the delivery of service on time at an affordable price.
Why CompaniesInn
Experienced Team: Our experienced team have the expertise to handle any assignment for setting up a business in India
Cost Effective: CompaniesInn business setup services are priced attractively to meet the requirements. Compared to Big 4 pricing or other law firms, we are charging at 1/4th cost. Moreover, our pricing is pre defined and no hidden charges.
All service available under one roof: Clients choosing CompaniesInn for setting up a company need not look any other agencies for all connected services. CompaniesInn directly or through associates, will ensure the delivery of service at any location in India.
Continued Support: our associate firm, CN Partners LLP, have experience in corporate law compliance will ensure timely compliance of legal requirements for an affordable price.
Tax Compliance and accounting services: CN Business Solution LLP, is a book keeping and tax law compliance firm. This firm has the expertise and experience of book keeping and tax compliance.
CompaniesInn is the ideal partner for business setup service and regularity compliance services.
Setting up of a company in India
A foreign national or foreign company, before planning to setup a company, need to look into the Government of India Policy and ensure that, proposed investment are within automatic rout. CompaniesInn, experienced business consultants, can advise you on this. After having an understanding of FDI policy in respect of the proposed investment, one can go ahead with setting up of company in India following the steps as narrated below.
Minimum Requirements for Opening a company in India
Private Company
A company formed by minimum two persons as shareholders having the following features:
Name of the company ends with the words 'Private Limited'
Minimum paid up capital INR 100000
Minimum two Directors
The shareholders can be foreign company, individual (Foreign Citizen or Indian Citizen) or Indian Companies or combination foreign company, individuals or Indian company. The proposed directors must be only individuals (Indian or foreign citizens). As per the Indian law, to become a director in an Indian company, one has to obtain Directors Identification Number (DIN)
Steps involved in Setting up of a company
Apply for DIN (Directors Identification Number): The proposed Directors shall make an application for DIN in the Government website using an address proof and Identity proof (foreign nationals, copy of passport are a must as Identity Proof). Once application is ready, same need to be signed after affixing a photograph. The application, address proof and Identity proof documents (if not in English a translation also) need to be notarized for submission to government.
Apply for Digital Signature (DSC): In India all documents are to be filed with the Ministry of Corporate Affairs are filed online using digital signature. Any of the proposed promoters should obtain a Digital Signature from one of the Certifying Authority in India.
Apply Name for the Company: After creating of DIN and DSC, immediately we can apply for name. If foreign company is a subscriber to the incorporation documents, and need to use same name for company in India, a no-objection letter from the foreign company is required. Also required a resolution from foreign company indicating their plan for setting a company and to authorise an individual to represt and to ensure that application is with proper authority.
Incorporation Document preparation: After approval of the name, Memorandum of Association and Articles of Association will be prepared for execution. These documents need to be executed by writing name address of the subscriber by own handwriting and notarized and legalised (either certified by Indian Embassy or apostatized) before submitting to the Ministry of Corporate affairs.
Incorporation Filing and Registration: The properly executed documents and other papers then filed online (scanned copy) with Government Registrar for incorporation. Usually 2 to 3 days time (if not must rush for incorporation), company will get registered and registrar will issue Certificate of Incorporation. The certificate will be sent to the registered office by speed post by the Registrar.
Other Compliance and Registrations
Tax Numbers
Every company need to apply for PAN and TAN (Tax numbers) this can be applied immediately after incorporation. Usually it takes 1 to 2 weeks
Opening a Bank Account
After making application for Tax number, company can apply for Bank account with any of the Bank in India. Opening of account usually happen 3 to 5 days
Capital Remittance to the Company Account
The subscribers (first shareholders) shall remit the value of shares subscribed to the company account immediately after opening the bank account. If foreign shareholders are involved, they need to remit into the bank account, in foreign currency for the shares taken. Also Indian company need to intimate Reserve Bank of India, regarding receipt of investment from foreign company/citizen.
File Return with Reserve Bank of India (RBI)
As per RBI regulation, if Indian company issue shares to foreign company or foreign nationals etc, after issue, within 30 days, company is required to file return with RBI.
Apply for Shop and Establishment Registration
Immediately after taking an office, company need to apply for shops and establishment registration
Apply for Professional tax Registration
It is a labour law registration and it is required to be taken immediately after setting up an office.
VAT (Value Added Tax) Registration
VAT registration is mandatory for those companies deal in goods. A company after setting up of office can apply for this registration to the respective local VAT authority.
Import & Export Code Number
After obtaining PAN, a company intended to do import or export need to apply for IE code. Usually it takes 7 days for allotment.
