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How a foreign company can start their business in India? There are majorly 3 options of Foreign Direct Investment in India by which a foreign company can start up their business in India. These are:
1. By Establish a Liaison office (LO) – Liaison office acts as a representative office and acts as a channel of communication between the parent company (Head Office) and subsidiary companies in India. It is an extension of head office and it is not allowed to undertake any commercial activity directly or indirectly in India and thus cannot accrue income in India. 2. By Establishing a Branch office (BO) – Companies incorporated outside India which are engaged in manufacturing or trading activities can establish a branch office in India. For this, approval of Reserve Bank of India (RBI) is required. And, it is an extension of head office with a right to accrue income. 3. By Establishing a wholly owned subsidiary (WOS) / Joint Ventures (JV) – Incorporating a private limited company as a wholly owned subsidiary of a foreign company or joint venture is the cheapest, easiest and fastest entry strategy by which a foreign company can start up their business in India. FDI in India into a private limited company or limited company covered under the automatic route, wherein no Central Government permission is required.
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This may be the very common question in the mind of layman that how to register a company in India? Nowadays starting a company in India is no more complex & time taking process. The Government has also facilitated the company registration process by digitalizing most of the procedures. Now company and firm registration process is online and a single application in SPICe Form (INC-32) is required to be submitted for company incorporation.
Following steps are to be followed for company incorporation in India: Step 1: Obtain a Digital Signature Certificate (DSC): The company registration process is online and digital signatures are required to file the forms to the MCA for company incorporation. It is mandatory to obtain DSC for all subscribers and witnesses in the memorandum and articles of association. Step 2: Apply for Director Identification Number (DIN): DIN is an identification number for a director and it has to be obtained by anyone who wants to be a director in a company. One DIN is enough to be a director in any number of companies. There are 2 ways of obtaining DIN: Option 1: File form DIN 3 which requires basic details of the proposed director along with identity proof and address proof. Now the applicant need not file DIR-3 separately and it can be applied within SPICe form (INC 32). Option 2: File SPICe form (INC 32) and DINs gets issued to the proposed directors who do not have a DIN. Under SPICe form (INC 32), maximum of three directors can apply for DIN. If there are more than 3 Directors and more than 3 persons doesn’t have DIN, then the applicant has to incorporate Company with 3 Directors and have to appoint new directors later on after incorporation. Step 3: File for Name Approval There are 2 options for the name approval: Option 1: Apply for name approval via RUN (Reserve Unique Name) form. You can provide two proposed Names in RUN form and in case of rejection of the name due to any similarity of name with a registered company, an LLP or trademark or due to non-adherence of the Companies (Incorporation Rules) 2014, there is the option of one re-submission. DSC and DIN shall not be required for filling of RUN form for reservation of name. Only MCA Account is mandatory. Option 2: Apply for name approval via SPICe form (INC-32). You can provide two proposed names in SPICe Form (INC-32) and in case of rejection due to non-approval of the name, the applicant will get a second chance of refilling the same SPICe Form (INC-32) without any further charges. Step 4: File SPICe form (INC-32) Ministry of Company Affairs has introduced SPICe Form (INC-32) and serves the following purposes with the benefit of a single application:
Step 5: e-MoA(INC-33) and e-AoA (INC-34) e-MoA refers to an electronic Memorandum of Association and e-AoA is electronic Articles of Association and these forms are filed as a linked form with SPICe Form (INC-32) and must be signed by the subscribers to the Memorandum of Association and Articles of Association. Step 6: PAN and TAN Application Through SPICe Form (INC-32), you can also apply for the company’s PAN and TAN by using forms 49A for PAN and 49B for TAN. These forms will be auto-generated after the submission of SPICe Form (INC-32). You only have to download it, affix digital signatures and upload both forms on the MCA portal. These are the steps of company incorporation in India. If you are worried about how to register a company and company registration process, then you can take help of professionals through our online platform of CAONWEB. Businesses that require online company registration in Delhi will find different fee structures from state to state and, depending on their operations. For online company registration in Delhi will be only the beginning of annual filings of board minutes, annual reports and other forms. There are various forms of online company registration in Delhi which are explained under: SOLE PROPRIETORSHIP FIRM REGISTRATION IN DELHI Sole proprietorship normally does not required to firm registration in Delhi as a legal entity. The cost in this form of business is least as compared to other forms of business. The documents required for this are identity and the address proof of the proprietor. It can be done either by getting MSME registration or GST Registration within 3-5 working days. PARTNERSHIP FIRM REGISTRATION IN DELHI Partnership firm registration firm registration in Delhi is a specific kind of relationship formed by an agreement between two or more individuals in which each partner has to invest to carry on a business. It is the most preferable structure because there is not much compliance or high cost involved. The only documents required under this form of business are identity and address proof of the partners. These firms are governed by the Indian Partnership Act, 1932 and it takes around 7-8 working days. LIMITED LIABILITY PARTNERSHIP FIRM REGISTRATION IN DELHI The documents required for Limited Liability Partnership firm registration in Delhi are the identity and address proof of all the partners and also the address proof of the place where the registered office will be situated. The whole process of Limited Liability Partnership registration in Delhi takes around 20-25 working days. It is different from Partnership form of business. The main difference is about the liability of partners. Its cost varies from state to state. ONE PERSON COMPANY One Person Company is a new concept in India if you want to start up your own business with no intervention of any third party then it’s the best way of online company registration in Delhi. The cost and documents for both OPC and Private limited company Private Limited company registration in Delhi are almost same. PRIVATE LIMITED COMPANY registration in Delhi The first and the most important step of private limited company registration in Delhi is to decide a name and get the same from the authority. You can reserve the name before incorporation by filing Reserve Unique Name (RUN) Form. Once the name is approved the rest all formalities are to be filed within 20 days. The documents required for Private Limited company registration in Delhi are identity and address proof of the Directors, address proof of the registered office of the company, rent agreement in case the premises is rented, even the residential address can be the address of the registered office and the rest all documents are to be prepared by your consultant. The whole online incorporation process takes around 15-20 working days. POST-COMPLIANCES FOR OPC AND PRIVATE LIMITED COMPANY REGISTRATION IN DELHI There are some mandatory compliance requirements like appointment of Auditor, filing of financial statements and annual return with ROC while some are based on turnover like tax audit. For any questions related to company registration and compliances you can contact to our expert team of professionals. Delhi NCR is one of the top three cities of startups and new ventures. Company registration in Delhi has a number of benefits if you are planning to start a business providing service or are already in business. Company registration in Delhi NCR is on rising every year due to the advantages and opportunities coming up every day. Company registration in Delhi NCR is not a complex task anymore. With the platform such as Cobweb Company registration in Delhi NCR is a matter of few minutes where you submit documents online and we give you your registered company in Delhi NCR. Pvt Ltd company registration fees are made easy with ca on the web. We give you a list of required documents and you get a Pvt Ltd company registration fees certificate. Pvt Ltd company registration fee which is also mentioned in our site is INR 14000. For one Person Company it is INR 13000 and for limited liability partnership, it is INR 9000. Ca on the web has an excellent record of Company registration in Delhi NCR. Our team of Chartered Accountants and Company Secretaries will guide you and get your company registration in Delhi NCR complete with the most affordable PVT Ltd company registration fee. Get your company registration in Delhi NCR simple and easy affairs by reaching out to ca on web GST refers to goods and services tax. GST registration is required if your annual turnover exceeds 20 lakhs rupees. In certain cases, you will need a GST number even if your turnover is within the threshold limit. GST registration normally takes between 2–6 working days. You need to file your application with the department and sign it with your digital signature. We at CAONWEB provides you the easiest way to get registered under GST. All you need to do is share the requested documents and we will get you're your GSTIN. Our service is available anywhere in India. So, is GST registration for new business mandatory? Any supplier or service provider has to register in each state or union territory If any of the following conditions are fulfilled. 1. Having an annual aggregate turnover from all-India operations which is above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for the North-Eastern States). 2. Currently registered under any of the earlier indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit. 3. Having branches in multiple states or multiple business verticals in one state. 4. Making any supply to other states. 5. Required to pay tax under Reverse Charge (In case your supplier is not registered under GST). 6. Required to deduct tax at source or an Input Service Distributor. 7. Agents of a supplier. 8. Supplying goods or services through E-commerce Operator. 9. E-commerce Operator / Aggregator who supplies goods or services under his brand name 10. Supplying online information or database access or retrieval services from a place outside India to a person in India, other than the registered taxable person. Some advantages of GST registration are:
1.The registered person is authorized to collect taxes from his customers and pass on the credit of the taxes paid to them. 2. A registered person can claim Input Tax Credit of taxes paid to his suppliers and can utilize the same for payment of taxes due 3. Seamless flow of Input Tax Credit from suppliers to recipients at the national level. So, what are the documents required for GST Registration? 1. PAN Card of owner/ directors/ partners. 2. Bill of Electricity/ Telephone, Rent Agreement or Letter of Consent (NOC). 3. MOA/ AOA or Partnership Deed 4. Letter of Authorisation for signatory. 5. Bank statement/ Cancelled Cheque. 6. Aadhaar Card of owners/ directors/ partners. Summary: GST registration for new business or an existing business depends on the conditions mentioned above. Why is it so important to have an iso registration number? Is it because your competitors have it? The business arena has long been plagued with rivalry, fierce rivalry — and this has compelled plenty of industry players to take extreme measures as everyone struggles to receive a bigger slice of the pie. It is the same till date. Competition remains as fierce as ever, there is the number of players having expertise in the similar kind of business you are doing which gives the customer the power to have domination over businesses as they have several options in the market. Unless the business or its products are deeply integrated into customer purchasing custom, the battle seldom seems to cease not to mention waver. So is it necessary to get certified in order to outwit the competition and be the best among all? By hanging framed certificates from the International Organization for Standardization, can a business have time to relax, to be confident, and to be unworried? Honestly, the answer is NO. In business, there is seldom room for complacency, not even with an ISO 9001 or whatever certificate hanging on the wall. The market remains dynamic and changing, and more so now with all the technological advancements and innovations. ISO compliance and certification aid the attainment of success, not guarantee it. As there are several other factors which keep the business fit and sustainable. If getting certified doesn’t make sure business success, then why do thousands of individuals, businesses, corporations, and organizations strive for it? ISO compliance puts an organization on the path towards the improvement of its overall operations and hence giving it momentum to succeed. When sure management systems are in place, the organization starts to have a vivid view of where it wishes to be and how to get there. The mere attempt of complying with ISO standards sets the organization in motion towards having increased efficiency, productivity, and profitability. It is one of an integral part of the business to maintain a record/ to have a certification that yes this business has all those factors which as per international standard are the crucial factor for fit business. Joining the bandwagon of ISO certification may in the finish help businesses and organizations reap the fruits of improvements in its operations. Nevertheless, organizations must keep in mind that “it’s not the location but the journey that matters”. In other words, the method of obtaining ISO registration gives the organization a more significant experience than the awarding of the certificate itself. But even with the certificate, the journey seldom stops. ISO standards are all about continuous improvement; there is no finish to it all. What are the benefits of iso registration number or iso certification? · ISO registration is direct evidence of a company’s financial and ethical commitment to provide high quality, safe products. · ISO certified companies maintain comprehensive internal audit programs that demonstrate to customers the effectiveness of their quality and environmental efforts. · ISO certified companies utilize systems that have been accepted for use by over 80 countries as effective means to achieve product quality and environmental stewardship. · ISO certified companies to document, review, and approve product designs that meet applicable safety, regulatory, and customer requirements. · ISO certified companies prove their systems through audits by independent registrars. Registrars are governed by strict international codes that dictate operating practices, audit methods, and staff qualifications. Failure to maintain quality program requirements will lead to de-certification by the registrar. · ISO certified company products reduce the need for the buyers to perform audits and reviews to determine if quality systems are in place and being maintained. · A certificate of analysis from an ISO certified company will be supported by documented procedures and records that demonstrate its validity. This is particularly important should a customer ever have a reason to question product quality. |