Foreign Company Registration

Documents Required

Depending upon the way a foreign company start a business in India, the documentation also varies.

Wholly owned subsidiary Company

Following documents are required for such foreign company registration in India:

1. Address proof of the office (In case of a rented property, the latest electricity bill)
2. For Indian citizen
   • PAN card mandatory
   • Address proof
   • Photograph ID
   • proof like Aadhaar card.
3. For foreign national
   • Passport mandatory
   • Address Proof
   • Photograph ID
   • Proof like any Government license
   • Documents submitted must be certified by the Indian Consular or Consulate.

Joint Venture

 In case of joint venture, well contract is drafted, hence the following points to be taken care of by parties involved: –

1. Dispute resolution agreements
2. Law Applicable
3. Holding shares
4. Transfer of shares
5. Board of Directors Non-Compete
6. Confidentiality, etc

Liaison Office or Representative Office

RBI prescribes the criteria for setting up a Liaison office or Representative Office in India, which are as follows:

1. It is essential to have a profit making record in the immediately preceding 3 financial years in the home country, and the net value should be more than USD 50,000.
2. In case, the above condition is not satisfied by the subsidiary company, a letter of comfort is to be submitted by the parent company which satisfies the above condition.
3. Specific approval of RBI under FEMA 1999 and Insurance Regulatory and Development Authority (IRDA) is required.
4. A designated Authorized Dealer Category–I Bank needs to forward an application for establishing an office to the RBI.
5. The office will be given a Unique Identification Number by RBI.
6. Along with the Application, English version of the Certificate of Incorporation/Registration or MOA & AOA (attested by the Indian Embassy/Notary Public), required documents should also be filed.
7. Latest Audited Balance Sheet of the applicant entity should also be filed in the Country of Registration.

Project Office

In case a foreign company wants to establishment office, and the foreign company has secured a contract from an Indian company to execute a project in India, prior permission from RBI is not needed, provided:

1. Funded directly by inward remittance from abroad or
2. Funded by a bilateral or multilateral International Financing Agency or
3. Cleared by an appropriate authority or
4. A company or entity in India provided that a contract has been granted Term Loan by a bank in India or a Public Financial Institution for the project.

Branch Office

By opening a branch office, a Foreign company can conduct business activity in India with the prior approval of RBI, provided:

1. The company should be engaged in manufacturing or trading activities
2. Profit in the immediately preceding five financial years is necessary
3. The net worth of not less than USD 100,000 in its home country.

There are huge opportunities in India as a Foreign Company even in the E-commerce Sector where Government recently allows 100% FDI in the E-commerce Sector.

India offers companies a large, built-in and dynamic potential market to explore. If you are interested in conducting business in this market, you need to establish your company’s legal presence in India by registering your business and filing the appropriate forms with the proper Indian authorities. In case of any help or assistance in Foreign Company registration in India, contact E-TAX HUB INDIA support team on 9962903855 /mail us sales@etaxhub.in, our team will guide through the entire process and help you comply.