Registration Process Of A Foreign Company In India

How to Register a foreign company in India? And how does the method of company registration operate in India? Would you like to register your company in India while in the USA? India is an open country with more than 1.3 billion people inhabited and untapped potential. 

The great news is that the Companies Act 2013 enables foreign nationals to register a business in India. This is possible if all of the Indian laws comply with it subsequently.

How Can You Register A USA Based Company In India?

The first and most important step to register a foreign entity in India is to determine which company you want to create in accordance with the business model. 

A foreign company may register an Indian company by establishing:

a. foreign company’s interagency office or representative office or 

  • A designated Authorized Dealer Category – I Bank must forward an application to the RBI for the establishment of an office.
  • RBI must issue a Unique Identification Code.
  • Also, the submission of appropriate documents is necessary along with the Application, English version of the Certificate of Incorporation, and MOA & AOA.
  • The applicant entity ‘s current audit balance sheet should also be present within the Country of Registration.
  • In the immediately preceding five financial years, it should have a profit and in its home country, it should have a net worth of no less than USD 100,000.
  • If the other foreign company does not meet the conditions described, then it can submit a letter from its parent company. In the same vein, the parent company should meet the conditions described above.

a. project office:

  • Funded directly by overseas remittances or
  • Similarly, is funded by an international finance agency, or
  • A company or individual in India receives Term Loan. For instance, a one that provides the contract by a public financial institution or bank in India for the venture.

If the requirements above are not fulfilled the foreign company will approach the RBI for authorization.

b. branch office.

  • By opening a subsidiary with prior approval by RBI, a foreign company may carry on business in India.
  • The company will engage in production or trading activities.
  • In the immediately preceding five financial years, it should have a profit and in its home country, it should have a net worth of no less than USD 100,000.

FDI in the case of a proprietorship, partnership firm, and the one-person company is illegal under FEMA requirements. 

For US-based company registration in India, Private Limited Company or Limited Liability Partnership is advisable as these business entities require less legal formalities and compliance in India. 

While investment in LLPs is permitted, prior approval of RBI is required. 

The Pre-Requisites For US Company Registration In India

Now that you know that a private limited company and LLP can easily be registered, let us discuss the conditions that a foreign-based company needs to fulfil to register a corporate entity in India.

  1. Check Foreign Direct threshold, if the sectors come on Automatic route, RBI ‘s approval will not be needed to register a foreign company in India.
    However, if the sector belongs to a 100% FDI route, prior permission to register a business in India is necessary from Central Government or the RBI.
  2. A foreign corporation can register a business in India by opening a branch office with RBI’s prior approval. 
  3. The foreign-based company to be registered in India is required to appoint at least one Indian director residing in India.
    The director must have all the necessary documentation and KYC information as well.
  4. Firstly, make sure to have all the necessary registration documents for the incorporation of a foreign company in India. 
    The transcripts are to authenticated and apostilled by the required officials and also by the Indian embassy.
  5. The appointed directors must possess DIN and DSC.

Documents Required For Registration Of Foreign Entity In India:

Where a Foreign National is a director or subscriber:

  1. Passport: counter certified by the Indian Embassy (Notarized or Apostle in their country).
  2. A copy of the Driving License of the country of issue.
  3. Voting ID.
  4. SSN (social security number)
  5. Bank statements.
  6. Passport size photos.
  7. The Embassy of India grants a resident permit.
  8. A duplicate of a valid Visa issued to foreign national.

Foreign Holding Company, required documents:

  1. Foreign holding company Certificate of Incorporation.
  2. INC 9 Declaration in the company name.
  3. All Approved Signatory KYC paper.
  4. Board Resolution approving registration of foreign company In India.

Procedure For Registration Of Foreign Company In India As Private Limited Company:

For instance, the applicant should have a user account on the MCA site. Getting a profile allows you to proceed directly to company registration.

Firstly, the initial step towards registering a Foreign Company in India is to apply for the DSC (Digital Signature) and DIN (Director’s Identification Number).

Secondly, you need to apply for PAN and TAN Application prior to filing incorporation form.

The foreign entity must register with the MCA Portal and apply for the company name by using the run form to reserve the company name.

Application for incorporation of a foreign company in India. It includes registration of the company’s Memorandum and Articles of the company along with various other documents properly executed by the appointed directors and shareholders.

Likewise, the documents of the incorporation should be signed by the representative of the foreign entity if the subscriber is a foreign entity. 

However, let’s hope the Foreign Company Registration article in India helps you set up a business in India. 

Please notice that you will need a specialist to do the tasks mentioned above for the registration of a foreign company in India. 

Meanwhile, to complete the USA company registration, you must hire a CA (Chartered Account) or CS (Company Secretary). 

Similarly, Taxolawgy ‘s network of legal experts in India will help foreign companies develop their operations in India by starting a foreign firm in India.