Do you find India a preferable destination for Setting up of Business Entity? Well, that’s absolutely correct. India ranks amongst the top FDI destinations globally. Due to huge consumption base, investment potential, supportive government policies, lower operating costs and skilled workforce, India proves to be a perfect blend for setting business in India.
Strong FDI inflows into India in 2022 despite growth contraction due to the pandemic signal’s strong confidence among global investors which is expected to grow at double rate in the coming fiscal years.
Top investing countries includes USA, Mauritius & Singapore, UK, Japan, Netherlands, Germany, France, Switzerland, etc. Major sectors attracting highest FDI are Services Sector, IT Sector – Computer Software and Hardware, Construction, Telecommunications, Drugs and Pharmaceuticals etc.
If you are planning to set up, we at vistpass.com will be more than happy to help you. There are numerous things which are needed to be considered and researched before bringing your plan into reality.
Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.
The answer to this question is “yes”. A foreigner can start a business in India easily.
Your Indian company must have a registered office, which must be a physical address in India. The registered office is where documents may be legally served on the company. Vistpass.com Consultants Help International Clients to Get Registered Office Address in any State of India.
Indian Company Directors
Your Indian company requires just 2 directors and one of them should be an Indian Resident. Vistpass.com consultants are willing to provide Indian Resident Director Services to international clients for setting up a business.
Indian Company Shareholders
Shareholders are owners of the company, a minimum of two shareholders are required for your Indian company. Corporations or individuals of any Nationality can be Shareholders of an Indian Company. So being Foreign National you can hold 100% Ownership of your Indian Company.
The minimum share capital required is INR 100,000/-
The most commonly used type of company structure in India is the Private Limited company. The minimum share capital requirement for a Private Limited Company is INR 1,00,000
Vistpass.com being Consultants working to help International clients to meet all the above requirements to Open Your company with Stress-free Process. Vistpass.com consultants are willing to provide the Resident director and registered Office Address in India.
Here is a comparative list of the popular business structures in India.
One Person Company (OPC)
Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole proprietor to carry on his work and still be part of the corporate framework.
OPC is ideal for sole owners looking to limit their liability.
Limited Liability Partnership (LLP)
An LLP is a separate legal entity where the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC).
LLP is ideal for service-oriented businesses or businesses that have low investment needs.
Private Limited Company (PLC)
A PLC in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.
PLC is ideal for businesses that have a high turnover.
Public Limited Company
A Public Limited Company is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to the shares they hold.
Ideal for businesses with a high turnover.
You can choose what business structure suits your business needs best and accordingly register your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Please bear in mind, that these structures do not come under the ambit of company law.
Registering a company in India is now a simple 4-step process
Step 1: Digital Signature Certificate (DSC):
As the registration process of the company is completely online, Digital signatures are required to file the forms on the MCA (Ministry of Corporate Affairs) portal. DSC is mandatory for all the proposed directors and the subscribers of the Memorandum of Association (MoA) and Articles of Association (AoA).
DSC can be obtained from government recognized certifying authorities. DSC can be obtained online. Class 3 category of DSC must be obtained by the directors and subscribers of MoA and AoA.
Step 2: Director Identification Number (DIN):
The Director Identification Number (DIN) is an identification number for a director and it has to be obtained by anyone who wants to be a director in a company. The DIN of all the proposed directors of the company along with the name and the address proof are to be provided in the company registration form.DIN can be obtained while filing the SPICe+ form, i.e. company registration form.
SPICe+ is a web-based company registration form, through which DIN can be obtained for a maximum of three directors. If there are more directors in the company and they do not have a DIN, the company can be incorporated with three directors and it has to appoint new directors later on after incorporation. The appointed directors can obtain DIN by filing the DIR-3 form since only the proposed directors of an existing company can apply for DIN in the SPICe+ form.
Step 3: Registration on the MCA (Ministry of Corporate Affairs) Portal:
To apply for company registration, the SPICe+ form is to be filled out and submitted on the MCA portal. To fill out the SPICe+ form and submit documents, the director of the company has to register on the MCA portal. After registration, the director can log in and will obtain access to the MCA portal services which include filing eforms and viewing public documents.
The company must also reserve its name by submitting two proposed names in the Part-A of the SPICe+ form. The reservation of the name is essential because if the company name is similar to the name of an existing/registered company, LLP, trademark or it contains words prohibited under the Companies (Incorporation Rules) 2014, the SPICe+ form will get rejected.
If the SPICe+ form gets rejected due to non-approval of the company name, the applicant has to re-file another SPICe+ form for the reservation of a new name by paying the prescribed fee. However, after the approval of the name filed in Part-A of the SPICe+ form, it will be reserved for a period of 20 days within which the company must fill Part-B of the SPICe+ form and submit the form online. The applicant must provide the details of the company and directors in the Part-B of the SPICe+ form, attach documents, attach DSC, check the form and submit it.
Step 4: Certificate of Incorporation:
Once, the registration application is filled and submitted along with the required documents, the Registrar of Companies will examine the application. Upon verification of the application, he will issue the Certificate of Incorporation of the Company.
The Certificate of Incorporation is issued with PAN (Permanent Account Number) and TAN (Tax Collection Account Number) as allotted by the Income Tax Department. An electronic mail with a Certificate of Incorporation as an attachment along with PAN and TAN will also be sent to the applicant.
The general documents that are to be submitted for registration of LLP, One Person Company, Private Limited and Public Limited Company are as follows:
Documents of the Directors and Shareholders of the company/ Partners of the LLP
Documents of the Company/LLP
vistpass.com is a consulting and advisory firm with expertise in setting up legal structures for companies entering India. Your company may be small or big you can feel free to contact us for assistance. Vistpass.com connects you with a global network of chartered accountants and lawyers who can assist you for company registration and business setup.
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