There are many people who wish to start their business in India. If you are one of such people who wish to have their company or business in the country, they need to register their company. After all, you cannot simply have a company here without proper registration.
You know, with a population of over 1.2 billion people, India is the hugest democracy and one of the most promising emerging markets across the world. Therefore, there is much interest among international businesses to tap the emerging opportunities in the realm of India and be among the initial movers into the rapidly growing market. Now, if you want to start a business in India, you need to know about foreign subsidiary registration to get started. After all, you need to go by the rules or you cannot simply have your roots here.
What are the requirements?
For the incorporation of a new Private Limited Company in India, the following are needed from the client-
- Supporting documents, minimum of two directors (One Indian Director who is even an Indian Resident) and an acceptable name for that company. When , the above are available, Digital Signature Certificate and Director Identification Number (DIN) get obtained on behalf of the client from the Ministry of Corporate Affairs. On obtaining both the DIN and the Digital Signature, request for company name availability is simply made to the Ministry of Corporate Affairs. After obtaining the name approval, draft the overall Memorandum of Association and file it inside sixty days to finish the incorporation process.
- It needs a minimum of two shareholders for a private limited company. Hence, the holding company in a foreign country should pass a Board Resolution for the combination of Company in India and for the subscription of shares of the future Private Limited Company. Also remember that the foreign holding company can have 99.99% of the shares of the Indian Company whereas 0.01% of the issued shares of the Private Limited Company may be held by an Indian, in trust with that of foreign Company.
- After the company incorporation and getting the Incorporation Certificate, open the bank accounts and get the necessary licenses. Simultaneously, make the filings with RBI to show FDI in India through the automatic route.
Documents needed for incorporation of foreign company’s subsidiary in India
The following are a few of the unique requirements for incorporating a Private Limited Company with that of Foreign Directors. It requires an Identity and address proof for the Director, then passport or any other Government-issued license or registration including a photo, name in full and date of birth is satisfactory.
Then you need to submit any of the following address proofs like that of Passport, Driving License, Bank Account Statement or even that of Utility bill including name and address. Then, clearly photocopy the above documents need and certify the documents as a real copy by the Indian Consulate in the country of the holding company or should be apostilled. In case the documents are not in English, then a certified translation is also essential . Courier the above documents to India. Also, the remember that holding company in a foreign country for the incorporation of a subsidiary in India should definitely pass a Board Resolution.
Conclusion
So, since you have an idea about everything now, you can register your foreign company in india and ensure that you are good to go further.
