Process Of Company Registration And It's Benefits In India | Ebizfiling

  Registration of company by foreign nationals 

 

 Introduction 

 

Do you want to start a business in India but are having trouble registering one? Don’t worry, this blog will provide you with all of the information you need to know about how to register a company in India by following some simple online steps.

 

 Company registration 

 

Company registration is a process by which business owners incorporate their company as a legal entity. The first step in creating a company in India is to register it. It signifies that you have the authorization to conduct business in the Indian market and that you must adhere to all of the legal requirements as per MCA (Ministry of Corporate Affairs).

 

 Benefits of forming a company in India 

 

  • One of the key advantages of registering a company in India is that it has a vast population and a broad market without boundaries, with well-established logistics.

  • There is a considerable reduction in operating costs, from infrastructure to phones to the internet to labour to salaries to everything else necessary to start a company in India.

  • India has a well-regulated financial system that has access to developed markets all over the world and maybe financed through a variety of sources restricted to RBI laws and regulations.

  • India has a huge network of technical and managerial institutions of the highest international standards, which are supported by regional and bilateral free trade agreements.

  • The Indian government has launched a number of initiatives to encourage foreign investment in India's various sectors. It has periodically introduced a variety of interesting plans and policies in order to attract investors.

 

 Procedure for registering a company in India by foreign nationals 

Let us discuss five simple steps to register a company in India by an NRI or foreign national, which are as follows:

1. The first step is to obtain certain documents from the proposed directors of NRI/foreign nationals, which are the Digital Signature Certificate, Director Identification Number.

2. The second step is to decide on a name for the subsidiary company in India. The name should be unique or be the same as the foreign corporation.

3. The third step is to draft a Memorandum of Association and Articles of Association for the Indian Subsidiary.

4. The fourth step is to fill in the application for Indian subsidiary registration in India in the prescribed form, i.e., SPICe+ Form:

Spice+ is divided in two parts:

 

  • Part A: Apply for the name reservation of the company in Part A of the form Spice+. It can be used for taking the name approval of the proposed Company and also for filing Company registration in one go.

  • Part B: In Part B of the Form Spice+, apply for the following services:

  1. Incorporation

  2. DIN allotment

  3. PAN is required to be issued.

  4. Mandatory TAN issuance

  5. Mandatory issue of EPFO registration

  6. Mandatory issue of ESIC registration

  7. Mandatory issue of Profession Tax registration(Maharashtra)

  8. Mandatory Opening of a Bank Account for the Company and

  9. Allotment of GSTIN (if so applied for).

 

5. The last step would be to open a bank account in India under the name of the company.

 

 Basic requirements for Company Registration in India 

 

  • The name of your firm must be unique. The recommended name should not be confused with any already-existing business or trademarks in India.

 

  • A company does not necessarily need to have a commercial site for its registered office. If you want to use a rental property as your registered office, you must have the landlord's NOC.

 

  • A Private Limited Company can have up to 15 directors, with a minimum of two. The company's directors must include at least one Indian resident.

 

  • A business is not required to have a specific amount of capital. The minimum amount of authorised capital for a firm is one lakh rupees.

 

 Documents required for Foreign Nationals to register a company in India   

 

  • Passport photocopy (Notarized or Apostille).

  • Address proof such as a driver's licence, residence card, bank statement, or other government-issued identification document with a proof of address.

  • Residential identification documents, such as bank statements, utility bills, and phone bills.

  • Proof of a registered office.

  • Proof of any utility service, such as telephone, gas, or electricity, for office buildings.

  • Proof of stockholders' names and addresses.

  • Articles of Association and Memorandum of Association.

 

 

 

 Conclusion 

 

The Indian subsidiary company must be registered according to the Companies Act of 2013. According to the Companies Act 2013, a subsidiary company is a foreign corporation or a parent body that owns at least 50% of the total share capital. The subsidiary must abide by the laws of the country in which it seeks to operate.

 

 

 

 

 

 

 

 

 

 

 

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