The registration requirements for a foreign company wanting to start operations in India can be daunting. And a good company name registration agency can guide you better.
Here is a step-by-step guide that should take you through the process.
Step 1: Is your business a proprietary or a partnership firm?
If it is a partnership, you don’t have anything to register as the liabilities of one partner are not enforceable against another. If it is a company, then go to step
- However, if your business is an LLP (limited liability partnership), then register the LLP with Registrar of Companies under Partnership act first and then open an LLP bank account. This will allow you to run your LLP smoothly until you get your foreign company registered in India. Choosing a startup company registration agency makes the process easier.
Step 2: If it is a company, you need to file an application with the Registrar of Companies (ROC) for registration. Along with the application, you will have to submit certain documents, such as a memorandum of association, articles of association and an undertaking from the foreign company stating that it agrees to be bound by Indian laws. The ROC will scrutinize the documents and, if all is in order, will issue a certificate of incorporation. This process can take anywhere between 4-6 weeks.
Step 3: Important documents : Once the company is registered, it will need to obtain a PAN (permanent account number) and also register with the income tax department. The company will then have to start the process of opening a bank account too.A copy of the Memorandum of association is required to be filed with the Registrar of Companies in each state where it intends to conduct business and obtain a certificate of registration from them for this purpose.The foreign company also has to register itself with other departments such as labor, sales tax, and service tax.
The entire process can take anywhere between 1-3 months, depending on the preparation one does before starting out. These steps should answer some common questions that many people ask themselves when planning to start a foreign company in India.
Of course, other formalities need to be followed such as getting work visas, sales tax registrations, service tax registrations, etc. Still, these are the major requirements decided by the Indian government that foreign companies need to follow before they start doing business in India.
Conclusion
You can hire an accountant or a chartered company secretary (from India ) to take care of some of these formalities for you, like getting work visas, sales tax registrations, service tax registrations, etc. Your company might also require an internal audit department and HR head; however hiring them will depend on your business. The agency does all the work for you and helps you in every step of the registration process.
A registration agency will help a business person in various ways and also guide him through the legal process. Many small businesses are even registered online by a good cyber law firm. The business can be registered easily to their services.
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