It is very important for all Indian and foreign companies to understand the companies set up in India are incorporated under the companies act 1956.
A foreign company which plans to set up business in India has two options: Joint ventures and wholly owned subsidiaries. The foreign equity is such companies can be up to 100% depending on the necessities of the investor. A foreign company can set up their operations in India by getting into a joint venture with an Indian company or a wholly owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy.
All foreign companies have to agree to certain rules formed by the companies act, 1956.
Our team of accountants help foreign investors throughout and guide and assist them to do the right thing.
A foreign investor can either incorporate a private limited company or a public limited company. Whether a company is public or private, only the registrar of companies (ROC) has jurisdiction. Each state in India has its own ROC. A foreign company has to approach the ROC and give it proposed business idea and location of starting business. Based on the documents the ROC gives the investor a 'Certificate of Registration' which contains the date and incorporation number of the company registered. This document is of immense importance and serves as a proof/evidence that shows that the company is valid and registered in India.
Registration of Foreign Companies in India - Foreign companies registration in India