- Post:CA Nayani Agarwal
- June 15, 2023
Know about Foreign Company Registration in India
India is one of the fastest developing countries and there are various companies from all across the world that are willing to do business in India. With every passing day, the number of foreign entities doing business in India is increasing. Now the question that arises is how can a foreign entity do business in India? Well, this can be done by foreign company registration in India. So, let us have a look at what foreign company registration is all about and how it allows companies to do business in India.
What is a foreign company?
As per 2(42) of Companies Act 2013, a foreign company is a corporate body located outside India and is doing business in India. The business can be conducted either through an agent, physically or through any electronic mode.
Foreign companies can conduct business in India through various entities:
Branch Office: Branch office acts as a connection channel between the foreign company and the parent company. It allows the company to be involved in various commercial activities in India.
Liaison Office: This establishment represents the interest of the company in India. Under the liaison office, companies can engage in market research and promote business operations.
Wholly-Owned Subsidiary: Wholly-Owned Subsidiary is a completely separate legal entity that has the power to engage in a wide range of business activities. It also needs to comply with the business laws and regulations.
Process for foreign company registration in India:
The foreign company registration in India process may be different for different legal entities. So, we have come up with a general procedure for the establishment of a foreign company in India:
Selecting the nature of the company: First, you need to determine the nature of the company. This depends on your business plan and the goals that you wish to achieve.
Documentation: Next, you need to prepare the required documents. All the documents will have to be certified by the Indian Embassy. Some of the documents required include:
- Proof of Identity
- Registered Office Address Proof
- Articles of Association
- Memorandum of Association
- Director Identification Number
- Digital Signature Certificate
A lot of other documents may also be required on the basis of the exact nature of your company.
Formal application: Next, you will have to submit a formal application to the Ministry of Corporate Affairs. It takes a particular span of time for the application to be approved. In case it is not approved, you will be notified about the same along with the reasons for the application not being afforded.
Starting your business: Once you obtain the registration, you can begin your business operations, open a bank account and hire staff for the company.
The entire process of foriegn company registration in India can be quite a complicated one which is why it is important for you to take the help of a third-party organisation in getting your job done. To know more about foreign company registration in India, you may contact us and avail of our services.