India Company Registration

1. the Indian economy has huge untapped market potential

India is the third largest economy in Asia in terms of GDP and is expected to be the fastest growing economy in the world in 2015, with an estimated growth rate of 7.5%. India is also the second largest country in the world in terms of population and has a huge consumer market.

2. The Indian government provides favorable investment policies

The Indian government allows foreign direct investments (FDIs) in various sectors including retail, finance, insurance, aviation, railroads and telecommunications. Therefore, we encourage our clients to create a base in India to develop new markets.

3. Incorporation of an Indian company facilitates trade tax avoidance

India has signed 84 Double Taxation Avoidance Agreements (DTAAs) and 37 Free Trade Agreements (FTAs). This not only reduces withholding taxes for our customers, but also makes it easier for them to sell their products to a wide range of other markets, including China and Australia.

4. Low cost of doing business and living in India

India is one of the world’s low consumption cost countries, for foreign enterprises, operating in India is very cheap:

①. An Indian limited liability company can be formed with just US$1,650 of equity capital;

②. The average wage in India is very low, $169 per month;

③. Low retail price of electricity in India at $0.08 per unit;

④. The average price of air tickets for travel between major cities in India is lower than in other parts of the world.

5. Advantages of incorporating an Indian company in the service sector

①. Establishment of enterprises in Indian Software Technology Park:

A 100% import tariff reduction.

B Reduction or exemption of 100% central excise duty on local goods;

C 100% accelerated depreciation of computer equipment.

②. Establishment of an electronic subsidiary in India Information Center:

A Tax exemption on capital goods and computer hardware, 10-year business tax exemption, exemption from electricity tax;

Company B can find willing employees in the IT Park in Bangalore;

C The land purchased here will be exempted from 50% of the stamp duty and registration fees.

③. Infrastructure operation and maintenance investment companies:

Will be exempt from 100% of corporate income tax for 10 years.

④. Companies that invest in renewable energy:

A Refund of 20% of the total cost;

B Receive accelerated depreciation of 80% of the value of solar panels and windmills;

C Renewable energy companies will have corporate tax relief for the first five years.

6. Advantages of registering an Indian company in the manufacturing industry

①. Establishment of manufacturing plants in the Special Economic Zone:

A 100% export profits tax exemption for the first five years and 50% tax exemption for the last 10 years;

B. Provide various incentives including tariff, excise and VAT exemptions.

②. Engaged in mineral oil or natural gas production:

A 100% corporate tax exemption for the first seven years;

B Companies involved in the distribution, laying and operation of oil and gas pipelines will be fully reimbursed for all costs associated with the project.

③. Recycling of biodegradable waste and production of fertilizers and pesticide-related agricultural products:

A will be exempt from corporate tax for the first five years;

B Companies that are starting up or upgrading their facilities will be reimbursed 150% of the total cost.

④. Establishment of a local manufacturing company: You can apply for a 30% wage reduction for the first 3 years of new hired employees.

7. the advantages of e-commerce registration of Indian companies

With the rapid development of cross-border e-commerce in India, Amazon has also expanded into the Indian market. Registering an Indian company will enable it to enter the Indian e-commerce platform more quickly and package its own brand, which will lay the groundwork for the Indian market in the future.

Sole proprietorship

-The simplest type of company, the sole proprietorship does not separate the legal personality of the owner from that of the business. While this provides greater operational convenience, it can lead to a total setback in the event of liquidation, as the owner may be personally liable for all debts and obligations incurred by the business. No transfer of business is permitted and therefore there is no continuity. Unlike other corporate types, sole proprietors must report their business income based on their individual federal tax returns.

-If you are planning to set up a small business (mini-mart, art studio, bakery, etc.) on your own or for your family, a sole proprietorship is most likely the best structure for you due to its ease of incorporation and complete control.

-Owners of sole proprietorships are not required to register with the government, nor are they required to file any government regulatory filings, nor are they required to create permanent accounts.

● One-person companies

-Under the Companies Act, 2013, a single person company has been introduced in India. Under a one-person company, a sole investor can set up a separate limited liability company. This structure is intended to mitigate the risks that sole proprietors typically face during liquidation, to the extent that such persons hold shares in the company.

-Although this entity is attractive, it is not available to foreigners and is primarily available to individual resident entrepreneurs.

Partnerships

-Unlike a corporation, a partnership is not a separate legal entity, but is created and formed by two or more individuals. It cannot own property, incur debts or even sue or be sued by any other party. In law, a partnership is not a separate legal entity from its partners. Therefore, a partner in a corporation is personally liable for all debts and obligations incurred by the corporation.

-No registration is required to form a partnership, but it is still important to complete a partnership deed, which will state the duties and obligations of each partner and the percentage of profit sharing.

Limited Liability Partnership

-This structure can be seen as a middle ground between a limited liability company and a partnership, where the partners of the entity have limited liability. Thus, in the event of liquidation, the partners are protected from liability for debts and obligations. However, LLPs are restricted from raising capital in the same manner as LLCs and cannot list their stock.

Due to its inherently more flexible nature, this entity is still ideal for small and medium-sized businesses. If you wish to start a business in the service or professional services sector, this entity is suitable.

● Private Limited Company

-The entity is composed of at least 2 members but not more than 200 members. No shares may be issued on the open market and no payment for shares may be accepted from the public without compensation. The shares of the company are also not allowed to be freely transferred from one owner to another.

-In the eyes of the law, this form of company is considered as a legal person separate from its owners. Therefore, in the event of liquidation, the directors will not be personally liable for any debts and obligations incurred by the company.

● Listed companies

-As a public company, the securities of a public company can be traded on the stock exchange. Unlike a private limited company, a listed company is not restricted in transferring shares from one owner to another. A minimum of 7 members is required to establish a public company.

-But public companies will be subject to stricter public disclosure and more stringent requirements from the government authorities and their related departments. The privacy policy will not cover it, and the list of its shareholders can be viewed publicly.

1. shareholders/investors: at least 2 shareholders, either corporate or natural persons (one of the shareholders has to be a director);

2. Directors: At least 2 directors are required, one of whom must be a “local director” (either an Indian citizen or a foreign national who has resided in India for a cumulative period of 182 days in the previous financial year);

3. registered address: the address will be used to register the company, open a bank account and receive company mail;

4. business scope: need to provide the exact scope of business services or corresponding products;

5. minimum registered capital: the minimum registered capital is 100,000 rupees, which is approximately RMB 10,000;

6. digital signature certificate: all directors must provide a digital signature certificate (DSC);

7. director identification number (DIN);

8. board meetings: at least four board meetings must be held each year;

9. Annual General Meeting: The Annual General Meeting is held once a year.

Required information for company registration in India

1. Company Name: Pre-select at least 3 company names in order of preference, must end with “Private Limited”.

2. Memorandum of Association (MOA)

It mainly includes: the name of the company, the period of operation, the purpose of the company, the responsibility of the shareholders, the capital of the company, the place of incorporation of the company, the number of directors of the company and the names and addresses of the first board members, and the names and addresses of the promoters of the company.

3. Articles of Association (AOA)

It mainly stipulates the relationship between the Company and its shareholders, the rights and responsibilities of the shareholders, the rules of activities of the Company’s institutions and personnel, and the general administration of the Company.

4 Authorized Share Capital & Issued Share Capital

①. Authorized Capital: The maximum number of shares of the Company, which is the total number of shares authorized to be issued by the Company. Changes in the authorized share capital must be approved by all shareholders. The total number of shares issued by the Company shall not exceed the authorized capital in aggregate.

②. Issued Share Capital: The amount of share capital of the company that has been legally issued to the shareholders, which may be equal to or less than the authorized share capital. The minimum authorized and issued share capital is Rs. 100,000.

5. Shareholders: Minimum of 2 shareholders and maximum of 50 shareholders.

6. Directors: A minimum of 2 directors, who may be foreign nationals, one of whom must have resided in India for at least 182 days.

7. Registered address: Indian office address is required.

Tips: The most critical information for registering an Indian company: dual certification information, if you do not prepare this information will lay hidden dangers for the subsequent operation of the company, to set up an Indian company, at least two certifications must be experienced, before the verification of the name to do the certification of directors, after the verification of the name to do the certification of shareholders.

Process of registering an Indian company in the name of a natural person

1. notarized certification of the director’s identity card and passport;

2. the Director’s Digital Signature Certificate (“DSC”) and the Director Identification Number (“DIN “);

3. apply for verification of the name of the Indian company (to ensure its registrability);

4. Fill in the business license application form, pay the registration fee and stamp duty, and obtain the Indian company business license;

5. apply for the Indian company permanent account PAN & tax account TAN;

6. to open an Indian bank account;

7. share certificate filing;

8. capital verification of the registered capital of the Indian company;

9. application for subsequent tax codes for Indian companies;

10. Successful ownership of Indian companies.

● Process of registering an Indian company in the name of an offshore company

1. The business license of the foreign company, the articles of incorporation and the resolution of the directors regarding the investment in India are notarized at the Indian Embassy in China in the country of residence of the enterprise;

2. Digital Signature Certificate (“DSC”) and DIN Director Identification Number (“DIN”), the electronic signature of the Director “)

3. apply for verification of the name of the Indian company (to ensure its registrability);

4. the appointment letter of the director of the Indian company, the declaration letter of the director, the declaration letter of the shareholder, the subscription letter of the shareholding, the resolution of the director of the foreign company regarding the subscription of the shareholding, etc. are notarized at the Indian Embassy in China in the country of residence of the enterprise;

5. Fill in the business license application form, pay the registration fee and stamp duty, and obtain the Indian company business license;

6. apply for the Indian company permanent account PAN & tax account TAN;

7. to open an Indian bank account;

8. share certificate filing;

9. capital verification of the registered capital of the Indian company;

10. application for subsequent tax codes for Indian companies;

11. Successful ownership of Indian companies.

Time to register a company in India

It takes 60 working days to register an Indian company and 15-20 working days to apply for IEC and GST number respectively, so it takes about 3 months to complete a full set of Indian company registration.

For foreign investors, according to past data analysis and client experience, more than 80% of clients choose to register as a private limited company in India, which is the most attractive form of private company.

India has a special Foreign Direct Investment (FDI) policy for foreign investment, which prohibits or restricts the following sectors: retail (except single brand), gambling & gaming, private equity, tobacco, real estate, agriculture, plantation, nuclear and public sector such as railroads.

Under the Foreign Investment in India (FDI) regulations, foreign investors are not permitted to enter the land sector or may be involved in the land business, including all real estate business, farm buildings, construction and transferable land development rights transactions. This does not include township development, residential or commercial area building development, road and bridge construction, school and facility construction, urban and regional infrastructure construction, township construction, and real estate leasing that does not involve transfer transactions.

Notes on registering an Indian company

1. In the file notarization certification of this item, if the agent does not specify the specific form and content requirements of each file, it is likely that after spending a lot of time and money, your file still needs to be reworked, and then pay a high cost of certification.

If the company registration materials are not certified in time (more than 20 days), and the certified materials contain the company name passed in the first verification, the certified file will be invalidated at the same time if the second submission of the verification fails to pass.

The vast majority of Indian agents are not familiar with China’s domestic foreign exchange control regulations, Chinese natural persons without a Hong Kong account can not make direct investments, except for the registration of SPV companies (investment companies) in Hong Kong, many customers in the commission of local agents after the registration of Indian companies with mainland natural persons as shareholders, resulting in the final company can not be funded (Indian companies are required to actually inject funds).

4. When filing the incorporation documents with the Registrar of Companies in India, the Registrar of Companies in India may raise objections of one kind or another, and it is time to test whether your agent is responsible.

The Indian company registration is not as free as the registration of other offshore companies, there are many aspects of the restrictions, requires a lot of time and effort, the choice of agent must be reliable and experienced, otherwise, no matter which of the intermediate exchange error will lead to the registration of Indian companies progress is slowed down.