HOW TO SETUP A FOREIGN COMPANY BUSINESS IN INDIA

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HOW TO SETUPA FOREIGN COMPANY BUSINESS IN
INDIA How to Setup a Foreign Company Business in
India Due to economic revolution
and globalization, most companies in the world
looking to expand their operations throughout the
Globe. In...
How to Setup a Foreign Company Business in
India/caption Due to economic revolution and
globalization, most companies in the world
looking to expand their operations throughout the
Globe. In the recent past due to India Economy
booms and Government also open doors to foreign
nations company to invest in India, many foreign
companies come forward to setting up their
business in India. Wholly owned Subsidiary is one
of the business formation where a foreign entity
can setup business in India. This blog helps in
understanding about the Wholly owned
subsidiary(WOS) Registration of foreign company
in India About WOS When an Entity which is
incorporated outside India (i.e Foreign Country),
makes 100 Foreign Direct Investment (FDI) as
per Indian FDI policy, the Indian company
incorporated for this purpose is said to be
wholly owned subsidiary of that foreign entity.
Under the current foreign investment policy, a
wholly owned subsidiary can be established either
under the automatic route, if the conditions
specified therein are complied with (specific
high priority industries) or obtain an approval
from the FIPB. This is the easy and best method
for setup a foreign-based Company in India,
where entire hold on the share capital of an
Indian company is held by Foreign Based Entity.
Key Feature of WOS

• WOS is regulated by Indian Companies Act, 2013
• All types of Business Activities are permitted
  such as manufacturing, marketing, services
  activity etc subject to FDI Norms.
• Treated as Domestic Indian Company and Indian
  Taxation apply and eligible for all exemptions
  and deduction as applies to Domestic Companies.

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• Type of WOS
• In India, there are two form of company
  incorporated
• Private Limited
• Public Limited
• Private Limited Company has following
  characteristics
• shareholders right to transfer shares is
  restricted
• the number of shareholders is limited to 200 and
• an invitation to the public to subscribe for any
  shares or debentures is prohibited.
• Minimum paid up capital is ?1,00,000.
• Minimum 2 Director and 2 shareholders, One will
  be Indian Resident Director.
• Public Limited Company has following
  characteristics
• It must have at least seven shareholders.
• Minimum paid up capital must be ?5,00,000
• It must publish a prospectus or file a statement
  in lieu of a prospectus before it can start
  transacting business.
• A public company is required to have at least
  three directors.

Documents required for Registration/setup of
Wholly Owned Subsidiary (WOS).

• 3 Passport Size photograph.
• PAN CARD (Not mandatory in case of Foreign
  Director).
• Passport (Mandatory for Foreign Director, Must be
  in English Language and duly apostle).
• Address proof (Driving License, Voter ID,
  Passport, Aadhar Card).
• Any one of following (Bank Passbook, Credit Card
  Statement, Telephone Bill, Electricity Bill).
• Proof of Registered office in India-Electricity
  Bill, Leased deed or Rent Agreement.
• If the proposed director is in a foreign country
  then all the documents must be duly apostle by
  the home country if a director is presently in
  India then such apostle is not required.
• The process required for registration/setup of
  Wholly Owned Subsidiary (WOS) in India.
• Obtaining (Director Identification Number) DIN
  for all Directors.
• Obtaining Digital Signature for all the directors.

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1. Filling Application for Name Reservation for the
   proposed Company.
2. Drafting Memorandum Articles of Association.
3. Subscription to the Memorandum by the
   shareholders and appropriate person.
4. Submission of all the documents to the Concerned
   Registrar of Companies (ROC).
5. Receipt of Certificate of Incorporation from the
   ROC.
6. Apply for PAN CARD and an opening of Bank
   Account.
7. Submission of Documents for FDI Compliance after
   Subscription of Share Capital.

Cost for Registering a Company in India The cost
for registering a business in India is relatively
inexpensive. Registration of a company in India
can also be completed within a few weeks, making
India an easy place to start a business.
Post Incorporation Formalities Post registration
of the company in India, the Indian Director can
help open a bank account for the company in
India. Once the bank account is opened, the
Company must make FDI reporting to the Reserve
Bank of India. The procedure for reporting FDI
inflow into the company is simple and can be
completed easily by a legal or accounting
professional in India. Completing the FDI
reporting would ensure that the business is in
compliance with all regulations in India and
ready to operate. FOR SUCH HELP FROM THE VERY
BEST REGARDING REGISTRATION/SETUP OF WHOLLY
OWNED SUBSIDIARY (WOS) NEEDS AND NECESSITIES,
CONTACT VENTURE CARE.
TAGS
FDI NORMS.HOW TO SETUP A FOREIGN COMPANY BUSINESS
IN INDIALIMITED LIABILITY COMPANY PARTNERSHIPWOS
IS REGULATED BY INDIAN COMPANIES ACT