HOW TO DO FOREIGN COMPANY REGISTRATION?

India is a developing nation. The cost of production in India is low because the labor cost in India is low. So, it makes it a destination for foreign companies to invest in India. In recent years India has become a hub of new companies. The foreign companies are expanding their business in India as they see it as a growing venture. They are trying to invest more and more because they can earn more profits. Demand for products and services are on the rise in India. First, we need to know what a foreign company is. A foreign company is a company that has its business incorporated outside India and conducts its business operations in India. For this, it has to register itself in India. Let’s discuss all how to get foreign company registration:-

1)Documents requires-For a foreign company to start its business in India as a wholly-owned subsidiary company it needs address proof of the office, Pan card, adhar card, For foreign citizens passport, photo Id like government license, Unique Id number by RBI.

A) Joint venture –Dispute resolution agreements, shares holding, Confidentiality.

2) Holding a branch office-A foreign company can continue its business in India with the approval of RBI. The company should be doing manufacturing or trading business, profit in the first 5 years is compulsory, net worth in home country should not be less than USD 100,000. The government has allowed 100% FDI in e-commerce to promote investment by foreign companies.

A) Penalty for the non-compliance-Foreign company has to suffer a penalty or fine if it fails to submit the required documents and file.

3) Particulars to be registrar-Foreign companies establishing a business in India should submit a list of directors and secretary to the registrar for registration within 30 days of establishing their business.

A) Contains the particulars-The list of directors contain the particulars of each of the person whose name has been included in the list.

B) Financial statement-Every foreign company incorporating its business in India should prepare its financial business under schedule III. Copies of the latest financial statement of the foreign company and the other related documents need to be submitted.

4) Documents along with financial statement-The name of the person deemed to be a related party, nature of the relationship, amount of transaction like opening, closing, highest and lowest amount, the reason for making such transaction, details of other transactions that may have any type of financial impact.

Statement of profit and loss and statement of transfer of funds is to be made according to the provisions.

A foreign company can register itself in India by following all the provisions and guidelines laid down by the companies act. Any kind of non-compliance can lead to fines and charges that will be levied on the company. All the documents should be timely submitted to the registrar after the establishment of the company in India. Financial statement and profit loss account should be made for each year. All such criteria should be followed to register a foreign company in India.