There is a lot of buzz among foreign companies / foreign individuals to start their operations in India and tap into one of the largest and fast growing market, and have access to some of the best and cost effective human resources in the world. A Foreign National (other than a citizen of Pakistan, Bhutan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan, Bhutan or Bangladesh) can invest and own a Company in India by acquiring shares of the company, subject to the FDI Policy of India. In addition, a minimum of one Indian Director who is a Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.
Investment and acquisition of equity shares of a Company can be broadly divided into two categories: Foreign Direct Investment (FDI) under Automatic route and investment under Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post transaction filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of upto 100% is allowed under the automatic route in most activities/sectors in India. Investment in activities / industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. iNext can be your professional partner in India to get your New Company / Subsidiary in India started quickly and cost-effectively.
Separate Legal Entity
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited.
iNext can incorporate a Private Limited Company in 7 to 10 days, subject to ROC processing time.
Obtaining DSC & DIN
Digital Signature Certificate(DSC) and Designated Partner Identification Number(DPIN) is required for the proposed Partners of the LLP. DPIN and DSC can be obtained for the proposed Partners within 2-3 days.
A minimum of one and a maximum of two proposed names must be submitted for RUN (Reserve Unique Name)to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 2 to 3 business days.
Registration documents can be submitted to the MCA along with an application for registration. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.
ID Proof and Address Proof (Aadhar) for all Partners. as id proof PAN Card is Mandatory.
latest utility bill (electric bill/telephone bill) or latest tax receipt/ownership deep of the property for the property to be used for registered office.
- Incorporation of company as Indian subsidiary of foreign company including 2 DSC, 2 DIN, name approval, incorporation fee, PAN, TAN, share certificates and company kit.
- Incorporation of company as Indian subsidiary of foreign company including 2 DSC, 2 DIN, name approval, incorporation fee, PAN, TAN, share certificates, company kit, one year TDS return filing and annual tax filing.
- Incorporation of company as Indian subsidiary of foreign company including 2 DSC, 2 DIN, name approval, incorporation fee, PAN, TAN, share certificates, company kit, one year TDS return filing, annual tax filing and Auditor appoitment.