Company Formation service India

1.        Which legal entity is going to be best for what you require?

The most suitable form of entity for carrying out business in India with a long term objective would be to form a Private Limited Company, by making investment through the equity shares in the Company. The basic Requirement for a private Limited Company in India is as follows:-

·         Minimum Two Directors of The company

·         Minimum Two Shareholders of the Company

·         Minimum Capital of the Company should be INR 100000/-

2. How long does the appropriate registration of the above suggested legal entity take?

The formation of the above Entity in India takes Approximate 12-15 Days after receipt of all the necessary Documents, The breakup of the Number of days is as follows :-

Activity	Days
Taking Directors Identification Number (DIN)	1 Day
Taking Digital Signature of Directors	1 Day
Reservation of the name of the Company	5 Days
Preparation of other Document such as MOA,AOA, Forms etc	2 Days
Filling of Documents with Authorities	1 Days
Liaison with the authorities and Correction	3 Days
Getting Final Certificate of Incorporation	2 Days
Total Number of Days	15 Days

3. Formation Cost involved in the formation of the Above Company?

The Cost of formation of Private limited depends on the Authorised Capital of the Company; Following is the breakup of Cost for the formation of the Company with a Minimum required authorised Capital of INR 1 Lac.

Activity	Days
Taking Directors Identification Number (DIN)	INR 1500/- Each Director *2
Taking Digital Signature of Directors	INR 5000/- Each Director*2
Reservation of the name of the Company	INR 1000/-
Filling fees of government for final documents*	INR 6200/-
Other Government Expenses	INR 3000/-
Total Cost	INR 23200/-

* Fees Changes with the amount of Capital of Company

4. What are the operating principles/ legal requirements/ accounting requirements of a foreign company operating in India?

A foreign company operating in India and registered in India is treated as a Local Indian company. Following are the basic information for your information:-

• Subsidiary of Foreign Company need to take RBI Approval for investment made in India.
• Company need to maintain its books of Accounts.
• Company need to get its accounts audited every year.
• Company need to file its tax return annually.
• Company need to file annual account with authorities annually.
• Income tax rates applicable to Companies @30%.
• Company need to have various Business registration with authorities like PAN, TAN, VAT, CST, Services Tax, Profession Tax, Central Excise, Import Export Code, Shop Act etc depending on the applicability.
• Regular Monthly/Quarterly/Six Monthly Return shall be filled for above registration as per applicability.

5. What is the process on getting investment capital into the country? What are the pitfalls of this?

Investment in India is governed by the Foreign Direct Investment Guidelines, Mainly the investment in India is allowed under two Method :

Investment through Prior Approval : In certain nature of business the prior approval is required from the government of India and once the approval is received than the investment can be made in the Indian Company.

Investment under Automatic Route : Most of the Business are allowed to invest under automatic route, Under automatic route the company can invest in Indian Company without prior approval. Once the capital is remitted in the Indian Company within 180 of the introduction of capital the company has to carry out all the necessary document filling with the RBI. Following are the documents.

• Filling intimation of receipt of Share Capital (within 30 Days)
• Filling FCGPR form with share allotment details and other information
• Filling Legal Compliance certificate from Company Secretary.
• Filling share valuation certificate from the Chartered Accountant.

The applicability of the above 5.1 & 5.2 need to be checked based on the nature of activities and business to be conducted by the foreign Company in India.

6. Can another company be sole share holder & director of a Private Limited Company?

As per the Basic requirement for the Company formation we need minimum 2 Shareholders and 2 Directors Hence we need minimum two shareholders and directors. In order to fulfill your requirement we can form Company by giving just one share to the second shareholders. The second shareholder will hold the shares on behalf of the Company itself hence the ownership will be 100% with the Company. In respect of the directorship we need minimum two individual name to be acting as directors of the Company.

7. Do the directors need to be present in person in India to perform the formation?

No the directors need not be present to perform the formation of the Company, They can provide the documents through the courier to our office and we can take care of the things. Further there are certain documents which are required to Notarised or Certified by the Indian embassy in your country. Following are the documents which needs certification.

• Passport of the directors – Duly Notarised
• Proof of the Residential address of Directors – Duly Notarised
• Documents mentioning the father’s name of the directors. (Birth Certificate)
• Declaration of subscription of shares in the own handwriting of the shareholders or person authorised by Company. – Certified by Indian Consulate
• Resolution by the investor Company mentioning about investment in India and authorising any person to sign all documents on the investors behalf.

The above documents shall be duly notarised or certified by Indian Embassy in their country. Know more about information: Know more about information: NGO Registration In India and International transfer pricing

Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 011-43520194