Business registration in India


Business registration in India

Company registration incorporated consultant in India. Foreign direct investment law of India, trade policy foreign business in India. Private limited company & branch office registration in India. Import export permission, income tax, accounts & audit, company secretarial service in India.

Business registration in India

Business registration in India

Company incorporated in India

Company registration & incorporated consultant in India.Know how to set up a business in India? For details please visit here 

Business registration in India

Business registration in India

Company registration in India

Foreign investors are welcome to India. Foreign company registration, formation & incorporation consultancy service in India.

Business registration in India

Business registration in India

How to start a business in India

Business registration in India

Business registration in India

Income tax filing in India

Income tax return, tax & VAT consultant in India

Business registration in India

Business registration in India

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Company formation in India


Company formation in India

Company registration, formation, incorporation consultant in India Have look

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Company formation in India

Business setup in India

Business setup in India. Foreign company registration, incorporation consultant & business service provide in India

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Company formation in India

Company incorporation in India

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Company formation in India

Start business in India

Business start in India as foreigner. Know how to start a business in India as foreigner ?

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Company formation in India

India-Company Formation, Registration


India-Company Formation, Registration

S & F CONSULTING FIRM LIMITED is an international business/ company registration consultancy firm.

* Foreign Company Registration (100% Foreign Investment, Joint Venture, Virtual/ Branch/ Liason Office, Foundation), Taxation, Accounts & Audit, Legal, Company Secretarial & Management Consultancy.

Company Registration/ Formation/ incorporation in India, Foreign Direct Investment in India-FDI, FDI in India, and Doing Business in India

Company Formation / Registration in India

All foreign investors need to know the law and process of investment in another countries including income Tax , Initial investment, Paid up, Authorized capital, minimum investment amount in terms of branch office, representative office

-set up 100% overseas asset,

-joint business enterprise,

-Virtual / area office / cooperation organization),

-Open / set up branch office

 Let’s see how they are doing commerce in India and generate returns.

There is many opportunity of investing in different sectors. All government gives priority to overseas deal to begin trade in India.

How to register/ creation/ merger business, company in India, FDI in India, Doing trade in India, How to set up industry in India

http://companysecretarybd.blogspot.com

S & F Consulting Firm Limited, Email: contact@sfconsultingbd.com, Skype: forhadhossain79

S & F Consulting Firm Limited.

India-Foreign Company Registration


India-S & F Consulting Firm Limited,

Company Formation in India, Foreign company registration in India, Company Registration Process in India, Foreign Direct Investment in India, How to start business in India?

Business Formation process in India is easier but need to follow some rules and laws of the country especially in case of foreign sponsor.

Foreign Corporation listing in India is possible (set up 100% overseas asset, joint business enterprise, and Virtual / area office / cooperation organization), let’s see how they are doing commerce in India and generate returns.

There is many opportunity of investing in different sectors. All government gives priority to overseas deal to begin trade in India.

How to register/ creation/ merger business, company in India, FDI in India, Doing trade in India, How to set up industry in India

http://companysecretarybd.blogspot.com

S & F Consulting Firm Limited, Email: contact@sfconsultingbd.com, Skype: forhadhossain79

India – S & F Consulting Firm Limited


Foreign Direct Investment in India ,

Doing business in India,

Company Formation process in India is easier but need to follow some rules and laws of the country especially in case of foreign investor.

Foreign Company Registration in India is possible (100% Foreign Investment, Joint Venture, Virtual/ Branch/ Liason Office, Foundation), let’s see how they are doing business in India and generate revenue.

There is many opportunity of investment in different sectors. All government gives priority to foreign investment to start business in India.

Company Registration/ Formation/ incorporation in India, FDI in India,

www.sfconsultingbd.com, http://companysecretarybd.blogspot.com

S & F Consulting Firm Limited, Email: contact@sfconsultingbd.com, Skype: forhadhossain79

Advantages
Our service list allows you to pick and choose to specifically match your needs. Our outsourcing capability allows you to achieve India fiscal compliance cost-effectively. We look after the peripheral issues leaving your company time to concentrate on what’s really important: succeeding in the India.

Foreign Company Registration in India
A foreign company can commence operations in India in one of the many different legal forms as discussed in the article. 100% foreign equity is allowed in Indian companies, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy of India. If a company is incorporated in India, even if it is wholly owned by a foreign company, it is treated on par with domestic companies.

Joint Venture Company
In India, no legal definition as such has been given to Joint Venture Company (JVC). JVCs in India typically comprise two or more individuals/companies, one of whom may be non-resident, who come together to form an Indian private/public limited company, holding agreed portions of its share capital.

A Joint Venture Agreement, known as shareholders Agreement prescribes the number of directors on the board, the quorum for board meetings and general meetings, the day to day management of the company, procedure to be followed on the death or bankruptcy of a joint venture partner, etc. Shareholders Agreements and the Articles Of Association (bylaws) of the joint venture company form the basis of the Joint Venture. Usually, JVC partners cannot enter into activities competing with the JVC. Shareholders agreements contain specific provisions in this regard. Non- competition clause can be included in the agreement.

Generally Indian JVCs have a 51%- 49% equity ratio between the foreign and Indian partners, respectively. A majority of share gives voting privilege hence foreign investors by virtue of their investment potential seek an upper hand and secure a majority stake in equity. There are no restrictions on repatriation of earnings from the JVC.

The typical arrangement in a JVC is as below
• Two or more parties subscribe to the shares of the JV Company in agreed proportion, in cash, and start a new business.
• Two parties, (individuals or companies), incorporate a company in India. Business of one party is transferred to the company and as consideration for such transfer; shares are issued by the company and subscribed by that party. The other party subscribes for the shares in cash.
• Promoter shareholder of an existing Indian company and a third party, who/which may be individual/company, one of them non-resident or both residents, collaborate to jointly carry on the business of that company and its shares are taken by the said third party through payment in cash.

A foreign company can invest in an Indian company through a joint venture agreement in the sectors which are open for foreign investments. Some areas are exclusively reserved for public sector and some are excluded for foreign participation such as real estate, agriculture, plantation etc. So it is important to check if there is any foreign investment cap for the sector in which the proposed JVC will operate. Approval of Reserve bank of India (RBI) or Foreign Investment Promotion Board (FIPB), as applicable, must be obtained for acquiring shares of the company and establishing place of business in India.

JVCs generally have limited scope and duration. The participants in the venture continue to exist as separate entity and the joint undertaking is for a specific purpose and the roles of the participants are defined and agreed in the Memorandum of Understanding. This is a popular vehicle in the era of globalization and liberalization. Foreign companies often team up with the local companies to mutually share their strengths and resources to develop new products, markets, technologies or to create value through the joint undertaking.

Although India’s foreign direct investment (FDI) rules have been substantially liberalized since the country first allowed foreign investment in the early 1990s and most sectors are now open to 100% FDI, JVC remains a popular vehicle for foreign companies. While JVC brings several benefits, it also has the inherent potential to fail because of incompatibility of the participants, management gridlocks, inadequate research, failure to contribute, misinterpretation of roles etc. Therefore it is essential to choose the right partners and clearly spell out the roles, responsibilities and rights of each participant.

Automatic Approval: The Government has classified 37 high priority areas covering most of the industrial sectors, in which up to 74% foreign equity receive automatic approval. Foreign investment in unrestricted sectors or restricted sectors up to the extent permitted under automatic route does not require any prior approval either by Government of India or Reserve Bank of India (RBI). Besides the high priority areas automatic approval is also available for setting up international trading companies engaged primarily in export activities.

Foreign Investment Promotion Board (FIPB) Approval Route: In other special cases, not covered under the automatic route, a special approval of FIPB or the Secretariat of Industrial Approvals (“SIA”), depending upon the quantum of investment, is required. The companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors.

Wholly Owned Subsidiary Company (WOS)
Foreign companies can also set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. A WOS can be formed either as a private or public company, limited by shares or guarantee, or an unlimited liability company. Most often due to the unique advantages Private Limited Company is the most preferred form for a WOS. This structure gives the most flexibility and protection to a foreign investor.

Liaison Office/ Representative Office
Foreign companies are allowed to establish Liaison Office in India after obtaining prior approval from the Reserve Bank of India (RBI), which is the apex bank India .The RBI grants approval, for one to three years, and it is renewable upon expiry. It is primarily a communication bridge between the foreign company and its customers or potential customers in India. The Liaison Office can also be setup to establish business contacts or gather market intelligence to promote the products or services of the parent company. It cannot engage in revenue generating activities.

The Liaison Office is permitted to undertake following activities only:
• Representing the parent Company in India
• Promoting export/ import from/ to India
• Promoting technical / financial collaborations between the parent companies and companies in India
• Acting as a communication channel between the parent company and Indian companies A Liaison Office is not permitted to undertake any commercial / trading / industrial activity, directly or indirectly, and is required to meet its expenses out of inward remittances received from parent company through normal banking channels. As a no-income earning entity it is not subjected to tax in India. However, the Liaison Office would be required to withhold tax from certain payments and hence is expected to comply with the requisite “tax withholding” obligations under the domestic tax law. The office must file regular returns to the RBI. Such returns must include Audited Annual accounts and an activity report for the year. This is highly suitable for foreign companies that intend to setup full-fledged operations in India. They can conduct a detailed review of plans and potential before making a long term commitment through this vehicle.

Note: Foreign Insurance companies can establish Liaison Offices in India after obtaining approval from the Insurance Regulatory and Development Authority. Such Insurance companies have been given general permission under FEMA for establishing Liaison Offices in India

Branch Office
The provisions regarding setting up Branch Office in India are governed by Foreign Exchange Management (Establishment in India of branch or office or other place of business) Regulations, 2000. Foreign companies are allowed to setup branch office in India after obtaining the requisite approval from the Reserve Bank of India (RBI). Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Authorized Dealer in whose jurisdiction the office is set up. The general permission of RBI permits a Branch Office to conduct the following activities
• Export/Import of goods
• Rendering professional or consultancy services.
• Carrying out research work, in which the parent company is engaged
• Promoting technical or financial collaborations between Indian companies and parent or overseas group company
• Representing the parent company in India and acting as buying/selling agent in India
• Rendering services in Information Technology and development of software in India.
• Rendering technical support to the products supplied by parent/group companies. • Foreign Airline/shipping Company

RBI has given general permission to foreign companies, subject to certain conditions, for establishing branch/unit in Special Economic Zones (SEZs) to undertake manufacturing and service activities.

The branch office cannot expand its activities or undertake any new trading, commercial or industrial activity other than those which are expressly approved by the RBI.

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up branch offices in India. Although such branch offices can undertake trading activities they are prohibited to carry out manufacturing activities directly. They are allowed to sub-contract these to Indian manufacturers.

Retail trading activities of any nature is not allowed for a Branch Office in India. Branch offices are permitted to acquire property for their own use and to carry out permitted/incidental activities but not for leasing or renting out the property.

Branch offices are extensions of the foreign company and do not constitute a body corporate of its own. The foreign parent company is liable for the acts of the branch office.

It is allowed to generate incomes in India and can meet its expenses from parent company’s remittance from abroad or from its local income. It is not allowed to accept deposits. The commission earned by the branch office from parties abroad for any agency business shall be repatriated to India through normal banking channels. For the purpose of taxation it is deemed a resident of India. Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes.

Project Office
A foreign corporation, which has secured a contract from an Indian company to execute a project in India, is allowed to establish a Project Office in India, without obtaining prior permission from RBI. RBI has now granted general permission to foreign entities to establish Project Offices subject to conditions specified below:
• the project is funded directly by inward remittance from abroad; or
• the project is funded by bilateral or multilateral International Financing Agency; or
• the project has been cleared by an appropriate authority; or
• a company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the project

If the above conditions are not met, the foreign entity has to approach RBI to obtain approval. The activities of the offices should remain limited to the purview of the project and must close after the project is completed.

The project office is treated as an extension of the foreign corporation in India and is taxed at the rate applicable to foreign corporations. Under the general permission granted by the RBI, Project Offices may remit outside India the surplus of the project on its completion.

Note: Partnership / Proprietary concerns set up abroad are not allowed to establish Branch /Liaison/Project Offices in India.

Doing business in India | Company Secretary-Bangladesh


 

Doing business in India | Company Secretary-Bangladesh.

Company Formation in India


Company Formation in India

Foreign Direct Investments in India

What are the forms in which business entity can be conducted by a foreign company in India?

  • Incorporate business as Company Law, 1956
  • Liason, Branch, Representative office can be opened by the permission of Foreign Exchange Management, India
What is the procedure for receiving Foreign Direct Investment in an Indian company?
  • It can be by the approval of government bodies or directly without prior approval of Government

What are the instruments for receiving Foreign Direct Investment in an Indian company?

 
Any foreign investment into an instrument issued by an Indian company which:
  • gives an option to the investor to convert or not to convert it into equity or
  • does not involve upfront pricing of the instrument as a date would be reckoned as ECB and would have to comply with the ECB guidelines.
Which are the sectors where FDI is not allowed in India
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Atomic Energy
ii) Lottery Business
iii) Gambling and Betting
iv) Business of Chit Fund
v) Nidhi Company
vi) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
vii) Housing and Real Estate business (except development of townships, construction of residen­tial/commercial premises, roads or bridges to the extent specified in
viii) Trading in Transferable Development Rights (TDRs).
ix) Manufacture of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
(Please also see the website of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India at for details regarding sectors and investment limits therein allowed, under FDI)
What is the procedure to be followed after investment is made ?
A two-stage reporting procedure has to be followed :
On receipt of share application money:

Within 30 days of receipt of share application money/amount of consideration from the non-resident investor, the Indian company is required to report to the Foreign Exchange Department, Regional Office concerned of the Reserve Bank of India, under whose jurisdiction its Registered Office is located, the Advance Reporting Form, containing the following details :

  • Name and address of the foreign investor/s;
  • Date of receipt of funds and the Rupee equivalent;
  • Name and address of the authorised dealer through whom the funds have been received;
  • Details of the Government approval, if any; and
  • KYC report on the non-resident investor from the overseas bank remitting the amount of consideration.
  • The Indian company has to ensure that the shares are issued within 180 days from the date of inward remittance which otherwise would result in the contravention / violation of the FEMA regulations.
Upon issue of shares to non-resident investors:

Within 30 days from the date of issue of shares, a report in Form FC-GPR- PART A together with the following documents should be filed with the Foreign Exchange Department, Regional Office concerned of the Reserve Bank of India.

• Certificate from the Company Secretary of the company accepting investment from persons resident outside India certifying that:
The company has complied with the procedure for issue of shares as laid down under the FDI scheme as indicated in the , as amended from time to time.
• The investment is within the sectoral cap / statutory ceiling permissible under the Automatic Route of the Reserve Bank and it fulfills all the conditions laid down for investments under the Automatic Route
What are the reporting obligations in case of transfer of shares between resident and non-resident?
The transaction should be reported by submission of form FC-TRS to the AD Category – I bank, within 60 days from the date of receipt/remittance of the amount of consideration. The onus of submission of the form FC-TRS within the given timeframe would be on the resident in India, the transferor or transferee, as the case may be.
Can a foreign investor invest in Preference Shares? What are the regulations applicable in case of such investments?
Yes. Foreign investment through preference shares is treated as foreign direct investment. However, the preference shares should be fully and mandatorily convertible into equity shares within a specified time to be reckoned as part of share capital under FDI. Investment in other forms of preference shares requires to comply with the ECB norms.
Can a foreigner set up a partnership/ proprietorship concern in India?
No. Only NRIs/PIOs are allowed to set up partnership/proprietorship concerns in India on non-repatriation basis.
What will be mode of payment for the non-resident permitted to acquire share on stock exchange under FDI scheme?
The Non-Resident permitted to acquire shares under the scheme can use following mode for payment of shares:
  • by way of inward remittance through normal banking channels, or
  • by way of debit to the NRE/FCNR account of the person concerned maintained with an authorised dealer/bank;
  • by debit to non-interest bearing Escrow account (in Indian Rupees) maintained in India with the AD bank in accordance with Foreign Exchange Management (Deposit) Regulations, 2000;
  • the consideration amount may also be paid out of the dividend payable by Indian investee company, in which the said non-resident holds control, provided the right to receive dividend is established and the dividend amount has been credited to specially designated non-interest bearing rupee account for acquisition of shares on the floor of stock exchange.
Whether transfer of funds is allowed from NRO
It is clarified that the transfer of funds on account of net sale / maturity proceeds (net of all applicable taxes), of shares / debentures may be allowed by the AD Bank from NRO – PIS account of a NRI to the said NRI’s NRE account, subject to the following conditions :-
  • such transfer of funds should be within the overall ceiling of USD one million per financial year;
  • subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad); and
  • The AD should ensure the compliance with the limit of USD one million for transfer of funds by the NRI.
  • 100 % own share holding company
  • Joint Venture Company
  • Branch Office
  • Work Permit, Visa
  • Factory set up

http://www.sfconsultingbd.com, S & F Consulting Firm Limited , Email: contact@sfconsultingbd.com