GST Registration for Foreign Companies

As the eCommerce market is widespread, more and more people are benefiting from this trend and launching their businesses. It is also breaking the geographical barrier, and businesses originating from a country can now increase their clientele to another country (s). And this is one of the key characteristics of a mix of globalization and digitalization. India, being one of the vast and promising markets, is attracting businesses even from foreign countries. For Foreign countries that are looking forward to commencing business in India, it is crucial to be aware of the GST Registration for foreign companies, mainly its requirements, process, and benefits!

GST: A Quick Introduction

Introduced on July 01, 2017, GST is a consolidated tax, replacing numerous existing indirect taxes like VAT, Service Tax, Excise Duty and Entry Tax, levied on the supply of goods and services in India. In general, it is levied on the consumption of goods and services in the country. GST is charged on the value added at each stage of the supply chain, starting from the manufacturer to the retailer. The final consumer has to pay this tax, but the businesses can collect it at each stage of the supply chain.

GST is governed by the GST Council, a centralised authority. The GST Council comprises representatives from all Indian states and union territories.

Process of GST registration for Foreign Companies in India

As far as the process of Foreign company GST Registration in India is concerned, it can mainly be categorised into two parts, those are:
1. Obtaining a GST Identification Number (GSTIN)
2. Applying for GST registration

Obtaining a GST Identification Number (GSTIN)

The first step towards the foreign company GST registration process is obtaining a GST Identification Number (GSTIN). GSTIN can be obtained by applying to the Central Board of Excise and Customs (CBEC).

Applying for GST Registration

After obtaining a GSTIN, a business is all set to proceed to GST registration. You can apply for GST Registration either online through the GST Portal or offline by submitting an offline GST Registration Application form with the required documents and visiting the GST Office in person.

Benefits of GST registration for foreign companies in India

GST Registration has numerous benefits for foreign companies that provide their services in India. Some significant benefits of GST Registration for Foreign Companies in India are;

• Fairly Competitive Ecosystem: Before the introduction of GST, foreign companies operating in India had to pay a higher tax rate than their Indian competitors. But after GST, the tax rate of Indian and Foreign companies became equal, thereby creating an unbiased competitive ecosystem for foreign companies.
• Improved Ease of Doing Business in India: After introduction of GST, more and more foreign companies are foraying into the Indian market to tap into a diverse scope of opportunities.
• Reduced Cost of Doing Business in India: GST has significantly cut back the overall tax burden for foreign companies operating in India. Due to which, India has become a more attractive destination for foreign companies.

Documents Required for GST Registration for Foreign Company in India

Like Indian Companies, foreign companies are also required to fulfill certain documents
requirements for GST Registration in India. The list of documents needed for GST Registration for foreign companies in India goes as follows;

• Copy of the Company’s Incorporation Certificate or other proof of its existence
• Copy of Company’s Memorandum of Association (MOA) & Articles of Association of Association (AOA)
• List of Company’s Directors
• Proof of Residence of Directors of Company
• Company’s Bank Statement for Last 6 Months
• Copy of Passport or other valid Identity for Authorised Signatory
• A Declaration by the Authorised Signatory
• An Undertaking by a Person registered with the GST Portal
• An Undertaking by a CA, Cost Accountant, or Company Secretary with the GST Portal

Process to obtain GST Registration for Non-Resident Taxable Person

The GST Registration process for Foreign Companies in India is a mandatory procedure to follow. The below steps need to be followed;

• A Foreign Company must acquire a GST Identification Number (GSTIN) from the Central Board of Excise and Customs (CBEC).
• The next step is to register for GST in India: Online or Offline submission
• If registering online, the foreign company must obtain a User ID and Password from the Central Board of Excise and Customs (CBEC). Upon obtaining these credentials, they are all-set to login to the GST Portal and begin the registration process.
• If registering offline, download an application form, fill it out, and then submit it offline to the CBEC along with copies of the required documents.

Note: The supporting documents required for GST Registration by foreign companies may vary depending on the type and nature of their businesses.

CONCLUSION

Foreign Companies looking to foray into the Indian market must meet certain regulations, including GST Registration, to legally commence their business in India. Such companies must fulfill certain conditions and satisfy document requirements to get their GST Registration completed smoothly. Seeking Expert Consultation from a GST Registration specialised company is always advisable!

About Company

Setindiabiz is a one-stop destination catering to all kinds of GST Requirements of domestic and foreign companies. Its team of legal and semi-legal professionals is well-versed in the GST Requirements of different entities and thus brings forth the best GST Services within an effective time span! To avail of the best GST Registration Services, connect with team Setindiabiz today!