Doing business in India can be a daunting task, especially for foreign companies. There are many laws and regulations that must be followed in order to register your company and start doing business in the country. In this guide, we will walk you through the process of registering a foreign company in India. We will cover everything from choosing the right type of company to setting up your bank account and more! Let’s get started!
What are the requirements for foreign company registration in India?
Foreign companies looking to do business in India must register with the Ministry of Corporate Affairs (MCA) by forming a subsidiary or a joint venture. The procedure for registering the company varies depending on the type of business entity being formed. Generally, foreign companies wishing to set up operations in India must complete:
1. Obtaining entry permission from the Reserve Bank of India (RBI).
2. Drafting a Memorandum and Articles of Association (MAA) that is in keeping with Indian laws.
3. Applying for Digital Signature Certificates (DSC) for all directors/authorized signatories.
4. Filing Incorporation Forms at the MCA website.
5. Obtaining a certificate of incorporation from the Registrar of Companies (ROC).
6. Applying for Permanent Account Number (PAN) and Tax Deduction & Collection Account Number (TAN).
7. Registering with the Employee State Insurance Corporation (ESIC), Professional Tax Authorities, Employee Provident Fund Organization (EPFO) and the Goods & Services Tax Network (GSTN).
8. Obtaining a certificate of commencement of business from the ROC.
9. Opening a current bank account in the name of the company’s registered office.
10. Registering with RBI for Foreign Exchange Management Act (FEMA) purposes.
11. Obtaining licenses, permits, and permissions required by the company’s business sector.
12. Applying for trademark registration, if required.
13. Complying with Corporate Social Responsibility obligations as per Indian law.
14. Filing periodic returns to the MCA and other government authorities.
15. Paying taxes according to Indian law.
16. Maintaining compliance with all applicable laws and regulations in India.
17. Closing the company or winding up operations, if necessary, by following the prescribed procedure set out by the MCA and other relevant authorities.
Foreign companies also need to ensure that they are compliant with all applicable laws and regulations in India and adhere to the best practices of corporate governance. This will ensure that their operations in India are conducted according to lawful business principles, protecting their interests and reputation.
How long does the process take to register a foreign company in India?
The process of registering a foreign company in India generally takes about two to three months. It can be completed faster if all the required documents, along with the correct information, are provided at the time of registration. After applying for registration, it usually takes approximately fifteen days for approval from the Registrar of Companies (ROC).
Once approved, one must obtain various permits and licenses from the relevant authorities in order to legally operate a business in India. Depending on the type of company being registered, it may take up to a month or more to complete these additional procedures.
The process of company registration in India can be complex, so it is important to seek professional advice from a company registration consultant in Noida to ensure that all the required steps are completed and done so in a timely manner.
What is the minimum capital requirement for foreign company registration in India?
The Indian Companies Act, 2013 requires foreign companies to have a minimum paid-up capital of Rs. 100,000 (approx. USD 1,425) when registering in India. This amount could be higher depending on the nature of business and may require approval from the Indian government for certain industries. The company must also submit supporting documents such as a certificate of incorporation and proof of business address.
What happens if my foreign company registration in India expires?
If your foreign company registration in India expires, then you must be aware of the consequences.
- Firstly, any pending payments related to the company have to be cleared before the expiry date.
- Secondly, all the documents and records related to the company must be submitted to the Indian authorities in a timely manner.
- Thirdly, all the employees of the company will have to be dismissed and their employment agreement terminated.
- Lastly, all assets of the company must be liquidated and the proceeds submitted to the Indian authorities. Failure to comply with these requirements may result in legal action by the Indian authorities.
Therefore, it is important to ensure that all your obligations have been fulfilled before the expiry date. Additionally, it is also important to be aware of any other regulations that may apply to your company in India, and ensure compliance with them before the expiry date.
