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Do I Need to Register My Company in India If I Already Have Registration in USA?

Author: Enter Slice
by Enter Slice
Posted: Dec 02, 2018

India is one of the fastest developing countries of the world with exemptions & benefits for various startups & ventures. Also, there is a boost in FDI because of liberal regulatory requirements in past few years.

Yes, an OFFSHORE USA Company can be set up in India, in two manners:

  • Wholly owned Subsidiary of the US Company; operating through an Indian registered space.
  • Branch Office/Liaison or representative office of the US Company; operating through virtual space. (It will be called as Foreign Company)
  • As a Foreign Company i.e. it can operate under the same company name as a Foreign Company

2(42) Foreign company means any company or body corporate incorporated outside India which-

a.) has a place of business in India whether by itself or through an agent, physically or through electronic mode;

b.) conducts any business activity in India in any other manner

  • Register a fresh Indian Company i.e. called as Indian Company

A). Wholly Owned Subsidiary of US Company:

Subsidiary creation of an overseas company is very similar to that of a normal Private Company registration in USA in the relevant region, just the compliances & fee structure are high owing to foreign investment involved.

Major requirements:

  • Application of name availability
  • Obtaining DSC & DIN of both the Directors on the board of subsidiary (nominated by foreign entity)
  • Drafting of MOA & AOA; Make sure documents of the Foreign National/Citizen are duly Notarized by the Public Notary of that Foreign Country and Apostilled or Consultative, whichever is applicable as per the Hague Convention.
  • Company registration in India with ROC, MCA
  • As FDI comes in, so the necessary compliance of FCGPR needs to be done with RBI.

B). Procedure for setting up Branch/Liaison Office:

  • Prior Permission of Rbi
  • Necessary documentation to be filed in an accurate manner
  • Check the FDI Limits
  • Registration of Branch office
  • Application to the regional office of RBI, Mumbai in Form FNC-1
  • Compliance with all the necessary certifications & licenses like GST, Shop & Establishment, Trade License, Lease contract.

C). Foreign Company:

  • Prior permission of RBI in FNC Forms.
  • The application should be signed by the authorized signatory of the Foreign Company with the prescribed documentation.

-The company should have a profit-making record for last consecutive 5 years & should enclose Financial Statements for the last 3 years.

  • Submission of all the proofs for the opening of Foreign Company in the same name along with business scope validation & brief description of organization profile.
  • The worth of company should be USD 1,00,000.

D). Register Fresh Indian Company:

This is just like incorporating a fresh Indian Private or Public Company under Indian Companies Act, 2013.

Kindly check for the necessary compliances related to FDI acceptance.

Entry for business in India by a Foreign Company is very much liberal after the launch of Make in India & Ease of Doing Business by the Government Corporate Panel. Liberalization in Taxation Structure along with Foreign Direct Investment has made setting up rather incentivized.

About the Author

Enterslice is a Financial Technology Company and CA Firm. Our team of experts helps firms resolve their complex legal, risk, and compliance related issues and to get Company Registration, NBFC License, and FSSAI Registration etc.

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Author: Enter Slice

Enter Slice

Member since: Aug 24, 2017
Published articles: 10

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