A Large number of Companies use Infotax Group to Start & Set-up their business in India. The Most Competent Legal Professional with the Best Competitive Rate

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    Starting a business in India ?

    A Foreign Company or Non Resident Indian who wants to start their business in India can work in the form of a Subsidiary Company or Set up a New Company or set up a  Branch Office.    We help you to understand what kind of set-up is best suited for you and help to set up the same hassle free.

    Legal structure Options

    Usually Foreign Companies/ NRIs wants to set up their back office in India, so they struggle in choosing between different legal structures for doing business in India. There are mainly two options, one is to set-up Wholly/Partially Owned Subsidiary Company or set-up a Branch Office.

    Benefits V/s Demerits

    A Foreign Company or Non Resident Indian who wants to start their business in India can work in the form of a Subsidiary Company or Set up a New Company or set up a Branch Office. We help you to understand what kind of set-up is best suited for you and help to set up the same hassle free.

    Ownership & Liability

    In case of Wholly Owned Subsidiary Company 99% of Shares is held by Parent Company and only 1% of share is held by an appointed Nominee. In case of Partially Subsidiary Company More than 50% Shares is held by Parent Company and balance can be held by other shareholders. A Subsidiary Company is a treated as Separate Legal entity from it’s Parent Company, therefore it independently manages it’s transactions and Parent Company cannot be held responsible for any of it’s transaction. The onus lies on the Subsidiary Company.

    In case of Branch Office 100% Ownership is of the Parent Company. A Parent Company is responsible for all of the activities and transactions of a branch Company, therefore it can be held responsible directly for it’s each and every activities.

    Tax Rates

    The Income Tax rate applicable on the Subsidiary Company is 25% whereas, for the Branch Office it is 40%.

    SET-UP A SUBSIDIARY/NEW COMPANY IN INDIA ​

    Steps involved in setting up a
    Company in India

    The First step is to take Name Approval from Registrar of Company’s(ROC) , it is obtained by filing Part A of Spice+ form and paying the requisite fees of $14 Approx. Thereafter, Part B of Spice+ form is filed with necessary documents.

     There are basically two forms of Companies :

    • Private Limited Company – A smaller form of Company where the shareholders are private investors. It can be started with minimum Paid up Capital of USD 1400 and minimum 2 directors. 1 Director should be a resident in India in the Previous year i.e. stayed in India for more than 180 days.
    • Public Limited Company – A bigger form of Company where the shareholders are held by public and private investors. It can be started with minimum Paid up Capital of USD 6700 and minimum 3 directors. 1 Director should be a resident in India in the Previous year i.e. stayed in India for more than 180 days.

    Professional Directorship Support :

    Usually Foreign company’s/ NRIs wants to conduct their business from Overseas, however, it is mandated by Law that at-least 1 Director stays in India more than 180 days. We have come up with solutions to provide Professional Directors on hire basis. This Concept provides an option to our clients to manage their Indian business from Overseas under professional expert guidance.

    STEPS INVOLVED IN SETTING UP A COMPANY IN INDIA
    • Name of Subscriber (Holding co.)
    • Name of Individual subscriber (Promoters).
    • Name of nominee shareholder on behalf of foreign holding Company.
    • DIN of proposed directors (minimum 2), if available.
    • Mobile No. E-mail I.D, Place of Birth, Educational Qualification and occupation of Proposed Directors/Subscribers/Nominee shareholders.
    • Proposed names (in order of preference) of the company.
    • Main object of the proposed company.
    • Proposed authorised & paid-up capital of the company.
    • % Shareholding of subscribers.
    • Face value of shares.
    • Self attested copy of PAN Card of Director/Subscriber/Nominee (for Indian nationals).
    • Self attested copy of ID Proof of proposed Directors (Voter ID/ Passport/ Driving License) of Director /Subscriber/Nominee.
    • Self attested copy of Residential Proof of Proposed Directors/Promoters/Nominee (Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill) (not older than two (2) Months) of Director/ Subscriber/ Nominee.
    • Self attested copy of Aadhar Card of Director/ Subscriber/ Nominee (for Indian nationals).
    • Self attested copy of passport is mandatory, required in case of foreign nationals.
    • Details of Directors in other Companies.
    • Name of the Company(s).
    • Designation.
    • Shareholding percentage.
    • Nominal Value of Shares.
    • Other Interest, if any.
    • Land line No. of Directors/ Promoters, if having.
    • Copy of electricity/ telephone/ gas/ mobile bill (not older than two (2) months ) of proposed registered office address.
    • Latest passport size 3 coloured photograph of each proposed director/ subscriber.
    • Digital Signature of subscribers.

    Process

    Meeting and Discussion
    with Stakeholders

    FDI and RBI approvals

    DSC for directors

    Name Reservation

    Incorporation Certificate

    MOA, AOA & other documentation

    Government Fees

    Government Fees

    MOA, AOA & other documentation

    Incorporation Certificate

    Set-Up a Branch / Liaison Office In India

    Eligibility to Setup a Branch Office

    As per FEMA Regulations, 2016 the eligibility to setup a BO in India is as under:

    1. The net worth of foreign head office must be above USD 100,000 (INR 80 lacs approx)
    2. The applicant company should have profitability track record of Five Years.

    Steps involved in setting up a Branch Office in India

    • Approval From RBI : Application has to be made in AD 1 category Banker for approval in FORM FNC as laid down in FEMA Regulations along with documents.
    • Registration with ROC : Registration of Branch Office with Registrar of Companies (ROC) t be made Within 30 days of approval from RBI, FORM FC 1 is to be filed along with documents.
    • Application for PAN, TAN and Bank Account
    • Registering the Branch Office with State Police
    • GST Registration
    • Certification of Incorporation or business license of parent company.
    • Charter issued to the foreign company by the government.
    • Memorandum of Association or Articles (Rules of the Company).
    • A declaration from the foreign corporation (parent company) that the parent company shall meet any shortfall in meeting the expenses of branch office.
    • Five years historical Financial Statement of the parent company duly attested by its auditors.
    • A certificate from the auditors of the parent company that the net worth of the parent company is more than $1,00,000.
    • The identity and address proof of the responsible person to do compliance for the branch office in India.
    • Premises proof, where the branch office shall be registered.
    • A No-Objection certificate from the owner of the premises of the registered office.
    • In case the document is in the foreign language, then a certified translation thereof must be filled.
    • All the documents having foreign origin shall be legalised as per Hague convention or by the Indian Embassy, High Commission.

    Process

    Meeting and Disucssion with Stakeholders

    Attestation of Documents

    RBI Approval

    Registration with State Police

    PAN, TAN, Bank and Other

    ROC Registration

    KYC Verification

    Filling of FNC form

    Filling of FNC form

    KYC Verification

    ROC Registration

    PAN, TAN, Bank and Other

    Track Your Set-up Process Online

    Incorporating a company or Setting up a Branch Office with Infotax is as easy as buying on Amazon. Once you connect with us, our experts make sure that a hassle free set-up process is completed. You’ll be notified of each relevant completed milestone and get a chance to ask questions from our experts along the way.

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