Company Registration

Procedure of Foreign Company Registration in India

Foreign Company Registration

Foreign Company Registration in India

A business can be set up by the foreign companies in India by full filling the conditions prescribed by the government for setting up a foreign company registration in India. India is a developing country comprising the huge population. As India provides a huge market, FDI inflows are day by day increasing.

A foreign company can be set up by the following two steps:

  • Either by incorporating a new company;

Setting up a new company in India by foreign nationals is the easiest way of entering.

  • Or by setting up branch/ liaison office (Liason office/ Representative office) in India.

Whereas setting up branch or liaison office requires prior approval of the Reserve Bank of India, therefore, it is a time-consuming process.

What are the mandatory requirements for setting up a foreign company in India?

  • In the case of Private Limited Company, there is a requirement of at least two directors and two shareholders. Shareholders can be individual as well as the body
  • One director must be an Indian resident and citizen who has stayed in India for past 186 days.
  • For a foreign company, the preferred legal entity is a type of entity where there are three directors out of which two can be foreign nationals but one has to be an Indian resident.
  • If we talk about shareholding then there are no such rules so foreign nationals can hold 100% shares in the company.
  • Another mandatory requirement is of registered office in India. Usually, the registered office is set up by foreign Companies in metro cities.
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What are the documents required for foreign company registration in India?

Following documents are required to set up a foreign company in India:

  • Copy of passport of foreign nationals;
  • Address proof of foreign nationals (Driving license / Bank Statement)
  • Copy of original documents should be notarized in the country of foreign nationals or by the Indian embassy in the foreign director’s country.
  • If a foreign company wants to become shareholders in an Indian Company then the copy of board resolution from such foreign company authorizing the investment in an Indian company.
  • Foreign nationals can incorporate a company in India without being present in India.

What are the after incorporation formalities?

After company incorporation, a bank account can be opened in the name of the Company. After bank account opening there is a requirement of FDI reporting with the Reserve Bank of India.

After the above-mentioned regulations Company will get ready for operations.

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