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- I am a US Passport holder; can I own a company in India? Yes, you can very well own a company in India (partly or even wholly) or set up your own company in India.
- What are prerequisites to buy shares in an existing business? In case of a closely held company (Private Limited, Limited Liability Partnership) procedures of valuation of shares, documentation of shares transfer and reporting to Reserve Bank of India need to be carried out.
- Can we run a company without registration? No. In order to run business in India, you would require a ‘Bank Account’. Banks will open an account only when the business is registered in India under any permitted legal structure.
- What is the owner of company called in India? Shareholders are owner of the company and enjoy rights based on their shareholding percentage. ‘ Director is a legal position who takes care of operational activities and also represents to various legal authorities governing the business.
- Incorporation of A Private Limited Company Or Limited Company
- Incorporation of A Limited Liability Partnership
- Through Proprietorship Firms Or Partnership Firms
- Registration of Branch Office, Liaison Office Or Project Office
- Management and Shareholding Structure
- Obtaining Digital Signature For Foreign National Directors
- Name Approval
- Filing For Incorporation of A Private Limited Company
- Subscribing to The Memorandum of Association
Incorporation of a private limited companyis the easiest and fastest type of India entry strategy for foreign nationals and foreign companies. Foreign direct investment of upto 100% into a private limited company or limited company is under the automatic route, wherein no Central Government permission is required. Hence, incorporation of a private ...
Incorporation of a Limited Liability Partnership (LLP)is also an India entry strategy for foreign nationals or foreign citizens as 100% FDI in LLP is now allowed. An LLP, however, cannot have shareholders and must be represented by Partners – thereby making it an ideal choice for investment vehicles and professional firms.
Proprietorship firms or Partnership firmsare the most basic types of business entities mostly used by very small businesses or unorganised players. Foreign investment into a proprietorship firm or partnership firm requires prior RBI approval. Hence, proprietorship firms or partnership firms are not suitable for a foreign company or foreign national...
Registration of Branch Office, Liaison Office or Project Officerequires RBI and/or Government approval. Therefore, the cost and time taken for registration of branch office, liaison office or project office for a foreign company is higher than the cost and time associated with incorporation of a private limited company. Further, foreign nationals c...
A private limited company must have a minimum of two Shareholders and two Directors. A shareholder can be a person or a corporate entity. However, a Director has to be a person. Foreign nationals are allowed to become Directors of an Indian Private Limited Company. The Board of Directors of the Indian Private Limited Company must have one Director ...
A digital signature is required for filing the incorporation documents and continued compliance documents for a company. Hence, Digital Signatures must be obtained for one or more Director(s) of the company. The following video is a guide to submitting Digital Signature application: The following are the documents and information required for obtai...
In parallel to the digital signature application process, name approval can be obtained for the proposed company. The name of the Indian Company must be unique and should end with the words “Private Limited”. Click here to know more about Naming an Indian Private Limited Company.
Once name approval is obtained, incorporation documents can be filed with the Ministry of Corporate Affairs to incorporate the Company. The incorporation documents to be filed includes affidavits & declarations from Directors, Memorandum of Association, Articles of AssociationSubscriber Sheet and Registered Office Address proof. The affidavit and d...
By subscribing to the MOA & AOA, the shareholders (either foreign companies or foreign nationals or Indian companies or Indian national) show their intention for becoming a shareholder in the company to be incorporated. In case a Foreign Company is a subscriber to the MOA & AOA of the proposed Indian Company: The following documents pertaining to t...
Mar 17, 2023 · To have a permanent establishment in India, a foreign company or national can either form a private limited company in accordance with the Act or form a limited liability partnership as per the provisions of the Limited Liability Act, 2008.
Apr 28, 2022 · A foreign national can establish a foreign company as a private limited company in India. Establishing a private limited company is the fastest way to set up a company in India. FDI of up to 100% into a private limited company is permitted under the FDI policy under the automatic route.
Jun 9, 2022 · The incorporation of a limited liability partnership (LLP) is also an India entry strategy for foreign nationals or foreign companies as 100% FDI in LLP is now allowed.
- Kanakkupillai
Jan 8, 2024 · Except for a small number of regulated sectors, the Government of India allows automatic approval of FDI into private limited companies without prior permission. This enables foreign companies and individuals to fully own and control an Indian enterprise. Key points about FDI in private limited companies:
Oct 3, 2023 · Additionally, this structure offers limited liability protection as the liability of the parent company remains distinct from that of the subsidiary. Joint Venture: Foreign Companies can enter the Indian market by establishing a business partnership through joint venture (JV) with entities in India.
