Naming and Registering a Business in India
Posted: May 30, 2016
India is the largest and the fastest growing economies of the world. In the recent years, many foreign companies are interested in beginning their business operations in India. The main reason of the increasing interest of foreign companies is the diversity of the Indian market and the opportunity for growth.
To start up the business in India, one at first needs to register their company. A foreign company can set up its business in India in different forms. It could be a Private Limited Company, Public Limited Company, or an Unlimited Company.
- Joint Venture Company- where two or more companies can form a partnership with Indian company with holding a certain percentage of share capital.
- Wholly Owned Subsidiary Company (WOS)- A foreign entity can establish a Wholly Owned Subsidiary in the sectors that allow 100% FDI.
- As a Liaison Office/ Representative Office- Liaison office role is limited acts as a channel of communication and cannot undertake any commercial activity indirectly or directly.
- Branch Office- The foreign companies involved in trading and manufacturing activities can establish Branch offices in India with the approval of RBI- Reserve Bank of India
- Project Office- Foreign Company who has secured a contract from an Indian company and planning to execute the project in India can set up a temporary project or site offices in India.
Apart from this, the foreign company needs to establish a business in India then they have to follow a typical procedure for registration with fulfilling the other formalities and perquisites. Basic Eligibility Criteria-
Reserve Bank Route- The primary business of the foreign company is related to the sector where 100% FDI is permitted.
Government Route- The primary business of the foreign company related to the sector where 100% FDI is not permitted. These applications are considered by the RBI, with the Government of India, Ministry of Finance.
Additionally, the track record of the company in the preceding 5 financial years must be minimum or equal to USD 50,000. Steps for registering a business
- Acquire (DIN) Director Identification Number for proposed Directors of the Company
- Obtain (DSC)Digital Signature Certificate for proposed Directors of the Company
- File the proposed name of the company for approval to the (ROC) Registrar of Companies
- Get the (MOA)Memorandum of Association & Articles of Association
- Pay the stamp duties
- File all incorporation documents and forms online, including all other important and necessary documents
- Obtain the certificate of incorporation
Upon approval from Reserve bank of India, and filing all requisite documents with Register of Companies and after scrutiny of documents, the company is registered under the Companies Act and issue the certificate of registration.
There are many firms that can help a foreign company to get the valid registration for their company so that they can start their business proceedings. They have all the acquaintance and expertise to help one in this registration process. If one is looking for Naming and Registering a Business in India then they can get more information by browsing the internet or by asking referrals from a trusted source.
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