Company Incorporation in India by Foreign Directors Introduction:
In 2013 Companies act Non-Indian nationals or foreigner company registration in India is administered by the Ministry of Corporate Affairs (MCA) through offices of the Registrar of Companies in each state. Private Limited Company is one of an ideal form of business for foreigner or NRIs who wants to start their business in India.
According to FEMA, the Indian government is not allowed Foreign Direct Investment (FDI) to do business like Partnership Firm and One person Company. In contrast, FDI is permitted to invest in LLP, but it requires the permission of the RBI.
To enter in Indian market Incorporation of a Private Limited Company is the best choice for any foreign national or foreign company. Because it has become the fastest and easiest way to start your business in the Indian market. Moreover, according to FDI forms, the share of the Indian company can be held by a Foreigner.
In this blog, we have to study how to set up a private limited company in India by Foreign Nationals or NRIs
Requirements of Company Incorporation by Non-Indian Nationals:
Shareholder
The person or member who holds the share of a company is called a shareholder. To registering a private company by Non-Indian Nationals, there should be minimum of two shareholders. The first one will submit the copy of his/her identity card and address proof and also provide some primary documents like Memorandum, Article of Association for registering the company. On the other hand, the second shareholder should be available for execution of the form on its behalf in any case of a body corporate.
Directors
The person who responsible for the management of company affairs under various law is known as Director of a Company. For Company incorporation in India by Non-Indian National, there should be minimum two directors one should be a resident of India and the other could be non-resident Indian.
Digital Signature Certificate (DSC)
To register private company incorporation in India by NRIs or Non-Indian National they must have a valid Digital Signature Certificate issued by Certifying Authority in India. The purpose of its to identify the third party members while using programs on the internet and local machines.
Reservation of Company Name
The SPICe (Simplified Proforma for Incorporating Company Electronically) is the easiest way to reserve company name by Non-Indian Nationals. However, you can also use RUN, which is a web-based application for company name reservation, but it is valid for only 20 days from the date of approval.
Documents for Company Incorporation:
These are the following document Non-Indian Nationals need to get while proceeding their company incorporation in India
Obtain DSC (Digital Signature Certificate)
Obtain DIN (Directors Identification Numbers)
MoA & AoA, SPICe INC-32 Filing
PAN/TAN Applications
Obtain Affidavit by Director
Required Form DIR-2
Address Proof
Tax Paid Receipt
Process of Company Incorporation:
E-Forms Filling with MCA
E-Form Filling is a process to register a company in India by Non-Indian Nationals. The applicant applied to Reservation of Company Name, Allotment of DIN for Directors of a New Company, allotment of Permanent Account Address (PAN ) and Tax Collection and Deduction Number (TAN) to the New Company
Company incorporation process consists of the following E-Forms :
e-Form INC-32 -Simplified Proforma for Incorporating Company Electronically(SPICe)
e-Form INC-33: e-Memorandum of Association (SPICe MoA)
e-Form INC-34: e- Articles of Associations (SPICe AoA)
In the end, all attested documents have to attach to the e-Forms INC-32/33/34 and then the e-Forms will be signed with Digital Signature Certificate (DSC) of the proposed Shareholders.
Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director
Certified CSR Professional., Certified GST Professional.
