Ask 4 Compliance | Registration For Foreign Entities
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REGISTRATION FOR FOREIGN ENTITIES

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SETTING UP BUSINESS IN INDIA

India is one of the most progressive countries in the world which possesses immense human potential and a huge market comprising of 1.2 billion people. India is a preferred destination for investment from NRIs, Foreign Nationals and Foreign Companies due to its booming economy and wealth of resources. India is among the fastest growing economies in the world, slated for tremendous growth over the coming decades with plenty of business opportunities. Looking at the huge market in India and the immense potential which lies here, there has been a huge amount of Foreign Direct Investments into the country and trends reveal that every year the FDI inflow in India is increasing due to the numerous foreign businesses starting their operations in the country.

Investment and acquisition of equity shares of a Company can be broadly divided into two categories:

  • Investment under Automatic Route
  • Investment under Government Approval Route.

The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of upto 100% is allowed under the automatic route in most activities/sectors in India.

A Foreign Company can commence operations in India through:

  • Joint Ventures: Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners.
  • Wholly Owned Subsidiaries: Foreign Companies can also set up wholly owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy by incorporating a company under Companies Act, 2013.
  • As a Foreign Company: Foreign Companies can set up their operations in India through:

 

  • Liaison Office/Representative Office
  • Project Office
  • Branch Office

 

Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India. At the time of making an investment in India or setting up an Indian office, the foreign company needs to comply with the Foreign Exchange Management Act (FEMA). FEMA also requires foreign companies in India to comply with certain procedural and filing requirements on a periodic basis when they conduct operations in India.

Our team of highly qualified professionals at Ask4compliance.com can help you to establish a Foreign Entity in India to start your business on Indian soil without any hassle.

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