FDI (Foreign Direct Investment) Policy in India in the last decade has become very liberal and encourage foreign investment.
There are many entry modes by which a foreign company can establish an entity in India. The choice of business form entirely depends upon the end goals to be achieved. There are majorly 3 options for foreign companies entering into India:
1. Establish a Liaison office (LO)
2. Establishing a Branch office (BO);
3. Establishing a subsidiary / Joint Ventures (JV).
In this article, we will focus on establishing a foreign subsidiary company in India.
Incorporating a company in India has been made handy and faster as compared to traditional time. There are lot of initiatives being taken by ministry to allow Indian & Foreign Subscribers to incorporate a company in India at a minimum cost and time. Some initiatives towards ease of doing business are as under
The Documents required from the Foreign Company for the preparation of Documents are:
a) Apostille / Notarized copy of resolution of foreign Company ‘mentioning the name of authorized representative, no. of subscription of shares’.
b) Apostille/ Notarized copy of ID & Address Proof of authorized representative.
c) Apostille/ Notarized copy of Charter of Foreign Company.
d) ID & Address Proof of Directors duly apostille or notarized in country of origin, including one Resident Director. PAN No. mandatory in case of resident Directors.
e) Proof of office address(Conveyance/ Lease deed/ Rent Agreement etc.)
f) NOC from the owner of the property.
Some important requirement as per Companies (Incorporation) Rules, 2014.
1. PAN undertaking of foreign subscriber or foreign authorized representative should be attached pursuant to General circular 12/2014 dated 22.05.2014. PAN undertaking should contain the acceptance of applying for PAN whenever required as per Income Tax Act.
2. As per rule 16(1) of the Companies (Incorporation) Rules, 2014, Residence proof shall be either of following (electricity bill, bank statement, water bill, telephone bill).
3. MOA/AOA in case of foreign subsidiary shall be apostilled/notarized in the foreign country.
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