India is among the fastest growing economies in the world with immense human potential and a large market comprising of over 1.2 billion people. Opportunities in India has attracted a large amount of Foreign Direct Investment into the country and each year the amount of FDI inflow keeps increasing due to more number of foreign businesses starting their operations in India. In this post, the way to setup a business is in India is detailed for foreign companies.
Incorporation of a private limited company is the easiest and the fastest type of India entry strategy for the foreign nationals and for the foreign companies. Foreign direct investment of up to 100% into a private limited company or a limited company is under the automatic route, in which no permission form the Central Government is required. Hence, the incorporation of a private limited company as a wholly owned subsidiary of a foreign company or a joint venture is the cheapest, the easiest and the fastest entry strategy for the foreign companies and the foreign nationals into India.
Cost for Registering a Company in India
The cost for registering a business in India is relatively inexpensive. Registration of a company in India can also be completed within a few weeks, making India an easy place to start a business.
Mandatory documents required for Company Registration in India
In order to register a company in India, the foreign nationals are supposed to submit a copy of their passport along with an address proof (Driver’s License, Bank Statement etc.).
The copy of the original documents should be notarized by a Notary in the home country or by the Indian Embassy in the respective country where the foreign Director belongs to.
In case a corporate entity is aiming to become a shareholder in the Indian Company then the Board Resolution from the foreign company should authorize the investment in the Indian Company.
The Board Resolution that has been decided upon mutually among the Directors should be attached with a notarized copy of the incorporation certificate of the foreign company.
This is to be noted that the presence of any of the foreign Directors is not mandatory required in India at the time of incorporation in India. Thus, the foreign nationals have the flexibility of establishing and operating a business in India without even travelling to India.