Company Registration in India by Foreigner
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Company Registration is easy when done by RPG Legal. Our dedicated team will assist you in registering your company across India at a very affordable price. We extend our support from documentation to preparation and filing through 100% online process.
Company Registration In India
India is one of the rising progressive countries in the world which holds the enormous humanistic potential and an immense market covering of 1.35 billion people. Glancing at the immerse market in India and the vast potential which lies here, there has been a considerable amount of Foreign Direct Investments into the country.
Trends reveal that the FDI inflow in India is increasing every year due to the various foreign businesses & Businessmen starting their operations in this country.
The foreign direct investment is open to most of the sectors in India under the automatic route of approval. Registering a company in India is simplified by the current Government, wherein an application is made in one e-form, known as Spice Form to the registrar of companies.
Overview on Company Registration in India (FDI)
100% Foreign Direct Investment is open in the majority of the sectors in Private Limited Company India under the automatic route of approval. The Indian Government is intent on increasing foreign investment in India and has taken several policy decisions to encourage FDI. The FDI Policy in India is regulated by the Department of Industrial Policy and Promotions (DIPP), Ministry of Commerce and Industry.
Registering a company in India is simplified by the current Government, wherein an application is made in one e-form, also known as Spice Form to the registrar of companies.
Primary Requirements
- Two Shareholders
Any person like a Individual, foreigners or foreign entities can be a shareholder in the subsidiary company. Minimum two person is required to be the first shareholders of the company whereas the maximum number of shareholders in a private limited company can be upto 200.
- Two Directors
The first necessary condition is to have a resident director, any person staying in India for 182 days is said to be a resident. The minimum number of directors which a company must have is two while the maximum number can be 15 which can be further increased after incorporation if the need arises.
- Registered Address
The proposed company must have a physical address where the registered office of the company shall be situated in India. A proof of such address and a No Objection Certificate from the owner of the premises shall be submitted to the registrar of companies during registration process.
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Advantages of Company Registration in India
- Convenient & Easy
Nowadays, it is very easy to incorporate a Private limited company through mere filing simplified e-form (SPICe) electronically. The Ministry has also integrated the System with the CBDT. On approval of SPICe forms, the Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Tax Department. More than 90% of applications are being approved within one working day.
- Easy Fund Raising
The company registration process is stringent enough to make this structure conceivable among others which makes fundraising or borrowing from external sources more accessible. The organization can raise equity capital from persons or entities interested in becoming a shareholder. A Company is a must for Entrepreneurs looking to raise money from angel investors, venture capital firms and private equity firms.
- Separate Legal Existence
Once the Company registration is done and certificate of incorporation has issued, a legal entity is born in the eyes of the law. Private Limited Company is separate from its owners and managers. The company operates on its own name by merely opening a bank account to own assets and enter into contract with parties. This also provides the right to sue third parties in case of any defaults.
- No Minimum Capital
Companies Act, 2013 prescribes the minimum share capital for private company registration. Where the minimum criteria are provided to keep Rs 100,000 as Authorized Capital, the requirement of minimum paid-up capital has been removed by said Act. No minimum capital is prescribed, and it should be based on business requirements.
- Rights Separation
Private Limited company owned by a group of members called shareholders and run by the person called directors. The separate management & ownership help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.
- Limited Liability
Limited liability is a type of legal formation for an organization where a corporate loss of owners will not exceed the amount invested by them. Shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares. In other words, Owners private assets are not at risk if the company fails.
Documents Required for Company Registration in India
Document From Mother/Holding Company (If Applicable)
- Certificate of Incorporation
- AOA/MOA or Charter Document
- List of Shareholders and Director of the foreign company
- Board Resolution Approving incorporation of a Subsidiary Company in India
- Power of Attorney in the name of Authorised Representative
Document From Indian Resident Director or Shareholder
- Colour Photograph - 4
- Pan Card (Issued by Income Tax Department)
- Identity Proof (One from Voter ID Card/ Driving License/Passport)
- Address Proof (One from Bank Statement/ Electricity Bill/Telephone Bill/Mobile Bill)
Document From Foreign Director/ Shareholder/Authorised Signatory
- Two colour photograph of each Promoter
- Copy of Passport and National ID Card
- Pan Card Copy issued by the Indian Government (If any)
- Address Proof (Telephone Bill / Utility Bill / Bank Statement)
- Business Visa in case the foreign person is in India
Proof Of Registered Office In India Of The Proposed Company
- Rent Agreement of premise or
- Electricity Bill in name of the owner to the premises or
- Water/ Gas Bill in the name of the owner of the premises or
- Lease deed, sale deed, Property Tax Receipt
- NOC from the Owner of the establishment
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Process for Company Registration in India
- Step 1 - Documentation and Questionnaire
Our Relationship Manager will reach out to you for the collection of the required information & documents of the promoter for registration of the Company. Data & documents can be submitted online. Once data is received, it is verified by our secretarial team and ensures that the documents are updated and accurate.
- Step 2 - Obtaining Digital Signatures
The filing process starts with the issue of a digital signature for all the promoters of the proposed company. Our digital signature application is completely online & OTP based, the applicant would have to complete OTP verification and a video KYC check
- Step 3 - Filing for Name Availability
The first step to incorporate Private Limited Company is the reservation of the name. RUN (Reserve Unique Name) form needs to file for ascertaining availability and reservation of the name of the Company. It is a web-based application form and where two names in order of preference can be filed with the Main object of the business. The proposed name must be unique and should not be similar to an existing company or LLP name or a Trademark
- Step 4 - MOA and AOA drafting
Once the name is approved, We draft Memorandum of association and Articles of Associate. MOA is the legal document that needs to be filed with the Registrar of Companies at the time of incorporation of the Company. MOA also defines its relationship with shareholders. Memorandum of association is accessible to the public and describes the Company’s name, address of registered office, names of shareholders and the shareholding. AOA serves as the constitution of the Company that defines all the rules and regulations that must be complied by the Company.
- Step 5 - Filing of Incorporation
Once the name of the business is deemed as reserved by the Registrar of Companies, an application for registration of Company along with the signed form & Documents need to file in Spice e-Form on MCA portal followed by paying the prescribed fee. The Government fee for company Registration depends on the proposed capital of the Company. On submission of the complete documents, the Registrar after satisfying will register the Company and will issue a certificate of incorporation. The Ministry has also integrated the System with the CBDT. On approval of SPICe forms, the Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Tax Department. However, the physical PAN card is directly dispatched to the registered address of the Company.
- Step 6 - Bank Account and FDI report filing
Once the company gets incorporated, You can open the Current Bank Account in the name of the company. The entire subscribed share capital as shown in the MOA of the company must be deposited in the bank account. Then the capital amount Company is required to comply with the reporting norms under foreign investment to RBI. On receiving the application money from non-residents, a Private Company needs to intimate foreign exchange department in RBI within 30 days of receipt along with the details like name and address of foreign investor.
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FREQUENTLY ASKED QUESTIONS
A Private Limited shall have a minimum of two directors and maximum 20 (needs to be over 18 years), and they must be a natural person, and at least one of them shall be a resident in India. [body corporate may become a shareholder of Company}
DSC is a secure digital key that is issued by the certifying authorities to validate signing and certify the identity of the person electronically while filing documents in e-forms.
Director Identification Number (DIN) is a unique identification number and allotted by the Ministry of corporate affairs to the person who wishes to appoint as a director of a Company. DIN never expires, and a person can have only one Director Identification Number (DIN).
FDI under the automatic route is not permitted for the following sectors. Hence, prior approval of the FIPB is required.
- Petroleum sector (except for private sector oil refining)
- Investing companies in Infrastructure & Service Sector
- Defense and strategic industries
- Atomic minerals
- Print media
- Broadcasting
- Postal services
- Courier services
- Establishment or operation of satellite
- Development of integrated township
- Tea sector
- Asset Reconstruction Company
FDI in the following sectors is prohibited completely:
- Atomic Energy
- Lottery business including government and online lottery.
- Gambling and betting
- Chit funds
- Nidhi Companies
- Trading in transferable development rights(TDRs)
- Real estate business or construction of farmhouse except for the development of townships, roads or bridges, city, and regional infrastructure, etc.,
- Manufacturing of cigarillos, cigars, cheroots and cigarettes of tobacco or tobacco substitutes
- Activity/sector not opened to private sector investment [e.g. Atomic energy and Railway Transport (other than Mass Rapid Transport Systems)]
Companies need a physical mailing address to register their businesses. A registered office address is required at the time of incorporation and must be maintained by the Company. Every Company needs to maintain books of account and statutory records at its registered office. Hence it should be a lockable area.
Nowadays, it is very easy to incorporate a Private limited company through mere filing simplified e-form (SPICe) electronically. The Ministry has also integrated the System with the CBDT. On approval of SPICe forms, the Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Tax Department. More than 90% of applications are being approved within one working day.
Private Limited Companies are treated as a separate legal entity and must also register as a taxpayer on its own. Private Limited companies are taxed at a rate of 22.5% on taxable income.
The Authorized Capital means a maximum amount of capital that a company can raise through the issue of shares to the shareholders.
Authorised capital can be increased at any point of time in future by following necessary steps as prescribed in the Companies Act 2013.
Paid-up capital is an amount of money which has received from shareholders in exchange for shares issued to the shareholders and payment was made by the shareholders.
What our clients have to say
We take pride! Not in our execution, But in your words. Here’s what keeps us going strong.
Had an outstanding experience working with RPG Legal to set up my company & Trademark Registration. Even minute details were explained and all aspects provided. Ready to support beyond hours, hat’s off guys. Special thanks to Ms Preet & Simran to assist us in stepping by step procedure and updating me on every stage.
D D YadavDirector, Rosemoon Healthcare Private Limited
It was a very immeasurable experience in setting up my company. The team are professional & understands the need and executes at the pace needed. I really appreciate & recommend.
Prashant SinghDirector, ShiftPurple & Nextdot
Dedicated, supportive and understanding team…
What else do we need to get the jobs done? Thanks to RPG Legal for helping us. And I hope this will be maintained as you already established a great business relationship. Cheers.!!
Vaibhav Vishal SrivastavaDirector, Certslearning Private Limited
Highly supporting system for new business.. Thank you RPG Legal for providing every type of business-related support to new in the field like me… and want to really appreciate the work of “Mr Anand” who provides us helpful advice each and every time related to our business.
Sumit GhugharwalDirector, Ghugharmedia Private Limited
We’re using your services form the last three years. We are delighted with the way solutions are provided in matters we have endeavoured professional help. We admire the association and look forward to a similar experience in the years ahead.
Saajib ZamanFounder, Proict LLC
We started with a Private Limited company incorporation for our Educational Institute. We have been taking the services from last two years and had an amazing service experience with the team. Smooth work everything was completed on time with perfection.
Apoorva BhargavCo-Founder, EDEN IAS
