Aug 18, 2020

What procedure do foreign companies follow for opening a company in India?

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India is the land of opportunities with immense options for foreign businesses that seek to earn higher ROI at the fastest pace. Many foreign brands look for opening a company in India to expand their business worldwide. With a population of 1.3 billion, India serves as the largest station for the required manpower. A lot of opportunities in India have resulted in an increase in foreign direct investment as many foreign companies are entering India at the fastest rate.

In this article, we have discussed the procedure for foreign companies opening business in India.

Strategy to enter a foreign business in India
There are two main strategies for opening business in India:
• Establishing liaison or branch office
• registration of a company
The easiest and smoothest way for foreign business opening in India is the incorporation of a private limited company. The FDI under the limited or private limited company is 100% in an automatic route that needs no central government approval. Hence, the incorporation of a wholly-owned subsidiary of a joint venture or foreign company is the easiest, fastest, and cheapest entry strategy for a foreign company in India.

Branch office, Project office, or Liaison office needs Government and RBI approval. Hence, the cost and time involved are higher than the incorporation of a private limited company. Otherwise, the opening company in India is a challenging job.

Establishing a company in India requirements
For an opening company in India, you need to have a minimum of two persons and an address from India. It is mandatory for a private limited company to open in India to have a minimum of two shareholders and a minimum of two directors. And, also it is important that one of the directors of the company needs to be from India.

The most preferred legal company structure for foreign business opening in India is having at least three directors, two needs to be from a foreign nation and one needs to be a citizen of India. But there is no requirement for a minimum of shareholding with an Indian director. Foreign entities are eligible to hold the 100% share in the company.

The Indian address is required to serve as the registered office of the company.

Documents for company registration in India
For the documents, foreign directors of the company need to submit a copy of their address proof with a copy of their passport. The documents need to be notarized by the Indian embassy in the country of the foreign directors or by the notary in India. In the incorporation process of the opening of the company in India, the presence of foreign directors is not required. They can establish the company without a flying hassle.

Company registration cost
The cost of business opening in India is relatively inexpensive. Registration can take a few weeks, but it is worth a wait.

We hope now the procedure stated above will help you in knowing about the opening the company in India. DBPL is the best company to partner with if you aim to open a company in India.

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Open company in India with the help of DBPL, which facilitates opening business in India to allow for enhanced advantages within a range of industries.

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