Foreign Direct Investment In India

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The following types of Business entities are available in India:
Joint Venture Company
Wholly owned Subsidiary Company
Limited Liability Partnership
Liaison Office
Representative Office
Project Office
Branch Office

Separate Legal Existence
Limited Liability
Flexibility of Ownership
Separation of Ownership and Management
Tax Planning
Perpetual Succession
Easy Transferability
Borrowing Power

Minimum 2 Director
Minimum 2 Shareholder
DIN (Director Identification Number for all Director)
DSC (Digital Signature Certificate for all the Directors)
Minimum Share Capital of Rs. 1,00,000/-
The Director and Shareholder can be same
At least 1 of the Director shall be an Indian Resident

Foreign Companies can set up their operations in India by strategic alliances with Indian partners.
Joint Venture may entail the following advantages for a foreign investor:
1.Established distribution/ marketing set up of the Indian partner
2.Available financial resource of the Indian partners
3.Established contacts of the Indian partners which help smoothen the process of setting up of operations

Foreign companies can set up wholly owned subsidiary in India in such sectors where 100% foreign direct investment is permitted under the FDI policy.

. Liaison office acts as a channel of communication between the principal place of business or head office and entities in India. Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India. Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI).

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:
1.Export/Import of goods
2.Rendering professional or consultancy services
3.Carrying out research work, in which the parent company is engaged Promoting technical or financial collaborations between Indian companies and parent or overseas group company
4.Representing the parent company in India and acting as buying/selling agents in India
5.Rendering services in Information Technology and development of software in India
6.Rendering technical support to the products supplied by the parent/ group companies
A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).

The Memorandum of Association (MOA) states the main and ancillary objects of the proposed company.
The Articles of Association (AOA) contains the rules and procedures for the routine conduct of the proposed company.

A company registration process is a legal process that usually takes 8-15 days for registration. However, a fixed time line can not be committed due to legalities involved in the due process.

No, the process is completely online these days and MCA does not issue a Printed copy. We can provide the printed copy.

On receipt of the certificate of incorporation a newly formed company can start the business operations.

PAN
TAN
Shop Act
VAT
Profession Tax
Service Tax
Provident Fund ESIC

Yes, you can register a company at your residential address as having a commercial space is not necessary to get a company in India.

Yes, a company’s address can be changed after acquiring a commercial space. The process of change of company address is very easy and it can be done within hours if the new address is within the same city.

Yes, legally a salaried person can become a director of a company. However, the terms and conditions mentioned in his/her employment agreement may have some clauses that might require an expert advice. We recommend you to speak to us before proceeding in order to make an informed and wise decision.

Yes, an existing company can be converted into any other form of business entity by complying the provisions of Companies Act, 2013.

No Hidden charges. Every details regarding charges are mentioned in the Quotation file sent to you.