How to register a foreign Company in India
Registering a company in India requires fulfillment of certain legal and government obligations. Furthermore, one has to adhere to the rules of companies act prevailing in the country. However, if the company is foreign company, an entity that is incorporate outside India but has a place of business in India, then it has to follow certain other norms and rules pertaining to its registration.
India is a fastest developing country of the world, it is therefore normal for other countries to invest in India. India is a good hub of doing business as the cost of production in India is low.
With every passing year, many foreign companies are coming and doing their business in India. Now a question arises as to how a foreign entity runs a business in India and what are the steps required for to register a foreign company in India?
Companies rules, 2014 prescribes guidelines to the registration of foreign companies in India.
Step 1: Obtaining DSC and DIN: The first step is to apply for Digital signature and Director’s identification Number of all the directors. The primary documents for foreign citizens and non residents should be notarized by the competent authority. The primary documents for obtaining DSC and DIN are:
1. Identity proof (PAN for Indian nationals and pass port copy for foreign nationals)
2. Driving license copy, bank statement or any utility bill (not older than two months).
3. Residence permit for foreigners if residing in India
4. Passport size photograph
Step 2: Approval of name: The next step to register a foreign company in India is to get the approval of the name of the company. Selecting a unique and acceptable name for the proposed company is one of the important steps in the whole incorporation process. The names should be in harmony with the object of the company and should not be identical to existing entities or undesirable by law.
Step 3: This is the final step in the process of registration. It requires filing of the Memorandum and Articles of Association of the company digitally along with various other relevant documents duly executed by the proposed directors and the shareholders.
The following documents are required to be executed during the registration process:
1. Subscriber sheet of Articles and Memorandum of Association
2. Declaration by the Director in form DIR 2 and in form INC 9
Generally the registration documents are required to be self attested by the Indian nationals. However, in case of foreign nationals, the process is as under:
1. If the documents are signed outside India, then the same have to be notarized by Public notary of the residence country or by the competent authority
2. If the documents are signed in India, then copy of visa and stamped passport, proving their presence in India at the time of signing is required.
3. If the subscriber is the foreign entity, then the registration documents should be signed by the representative of the foreign entity. After the registration is approved the registrar will allot PAN, TAN and Corporate identification number to the foreign company.
