Contents
How to Register a Company in India?
Registration of a company in India is now a simple process. Here what you’ll need to Procure:
I. Digital Signature Certificate (DSC)
II. Director Identification Number (DIN)
III. Registration on the MCA Portal
IV. Receive Certificate of Incorporation from Registrar of the Company (ROC)
These are the basic steps to incorporate a company in India with minimum government approvals. If you still need help registering your company, don’t stress over it, and let us inform.
How to Start a Business from Scratch?
· In case you are planning to raise funds, you should opt for the Private Limited Company,
· In case it’s a family business and you are not planning to raise funds you should opt for LLP; and
· In case you are a single founder, you should opt for One Person Company.
Applicable Laws for Forming a Company in India:
The laws applicable for incorporating a company in India include the India Companies Act of 2013, and the Foreign Exchange Management Act of 1999 as is applicable for foreign direct investments (FDIs) and Limited Liability Partnership Act, 2008 are governed by the Ministry of Corporate Affairs http://www.mca.gov.in.
Here we bring you with detail for setting up business process and services in India.
Indian promoters and foreign promoters both can form the following business entities:
A. Types of Companies
#Types of Company’s in India, #Types of Corporate Entities in India, #Types of Legal Entities in India, #Options for Investment by Foreign Investors through Doing Business in India.
Following types of business entities are available in India, for the purpose of Investments:
Private Company – A private company is a company having the following characteristics:
· Shareholders right to transfer shares is restricted;
· the number of shareholders is limited to 200; and
· an invitation to the public to subscribe to any shares or debentures is prohibited.
Public Company – The public company refers to a company, which is not a private company. Governed under the provisions of Companies Act, 2013
The following conditions apply only to the public company:
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- It must have at least seven shareholders.
- A public company having at least three directors.
- No restriction or prohibition for raising funds from the public through IPO, FPO, etc.
Limited Liability Partnership(LLP)
Limited Liability Partnership (LLP) is a substitute corporate business Organisation, which provides benefits of partnership firm and limited liability features of the Company. It is a hybrid mixture of Company and Partnership firms. LLP has its own separate legal entity. It will have perpetual succession and liable to the full extent for its assets and Liabilities. The liability of the partners would be limited to their agreed contribution ratio in the LLP Agreement.
One Person Company (OPC)
As per the Companies Act, 2013, one person Company is formed for the lawful purpose by one person, that is to say, a Private Company. While the incorporation of a one-person company, the sole director & shareholder obliged to propose a person as his/her nominee.
Section 8 Company
Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 which had in its main objects the promotion of commerce, art, research, social welfare, religion, charity, science, sports, education, and the protection of the environment or any such other object;
· Intends to apply its profits if any or income in the promotion of its objects.
· Intends to prohibit making payments of any dividend to its members.
Branch Office
Foreign companies are allowed to set up Branch Offices in India and conduct full-fledged business in India. Branch offices can carry the same trading business as carried out by the parent or holding company.
However, a Branch office is directly not allowed to carry out the activities of manufacturing, instead, it is permitted to sub-contract these services to an Indian Manufacturer.
Eligibility Criteria:
· Profit making track record immediately preceding 5 financial years; and
· Net Worth*: > USD 100,000 or equivalent
*(Net Worth is the sum of paid-up capital and free reserves, less intangible assets)
Please note:
Branch Offices shall be established with the approval of RBI, The profits, net of applicable Indian taxes of the branch may remit outside India subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI) in India.
Project Office
Project office refers to a place where the Foreign Company represents itself in India. The project office is planning to establish executing a specific project by a Foreign Company in India. Foreign Company can set up temporary project/site offices in India for carrying out activities only relating to that project. The Government of India has now granted general permission subject to specified conditions to foreign entities to establish project offices.
Liaison Office / Representative Office
Setting up a liaison or representative office (“LO”) is a practice for foreign companies seeking to enter the Indian market. A Liaison Office can be established with the approval of the government of India. The role of the Liaison Office is limited to the collection of information about the possible markets, promotion of exports/imports, and facilitate technical/financial collaborations.
Liaison office cannot undertake any commercial activity directly or indirectly and it can maintain itself by using only the remittances received from its parent Foreign Company.
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CS Riya Khurana
Csriyakhurana@gmail.com
Contact No.: 8810649870
Cs Riya Khurana