With a population of over 1.2 billion people, India is the largest democracy and one of the most promising emerging markets in the world. Therefore, there is immense interest among international businesses to tap the emerging opportunities in India and be among the early movers into the rapidly growing market.
Any foreign company can incorporate a wholly owned subsidiary company in India. In India, private limited companies are the most popular form of business structure and therefore the most obvious choice of foreign companies. In an Indian private limited company, there can two shareholders and two directors and at least one Director should be resident in India.
Setting up a 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 the beneficial shareholder of the company.
Documents Requirements: Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors. For companies it will be :
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 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
Foreign Company Compliance in India
Foreign companies registered in India are required to maintain various additional compliance under the Companies Act, 2013.
Form FC-1
Foreign companies registered in India are required to file Form FC-1 within a period of thirty days of the establishment of its place of business in India. The application must be supported with an attested copy of approval from the Reserve Bank of India under the terms of Foreign Exchange Management Act or Regulations, and too from other regulators, if any, the sanction is necessary.
Financial Statements
All foreign companies registered in India are required to organize financial statement of its Indian business operations in an agreement with Schedule III of the Companies Act, 2013. So foreign companies are required to furnish the following information/statements together with the financial statements of the company to be filed with the Registrar of Companies:
No comments:
Post a Comment