There are two ways to enter into Indian market and setup business organization
Company is where a group of members or we can say partners carry the same theme of business. Company is a legal entity that needs to register under the respective company act. These laws and regulations have played a vital role in bringing the business sector on the mark.
For every company it is being necessary to have company registration in order to move proficiently in the long run. This registration under the esteem company act will protect your business and company from any of the malicious activities. As with rising cases of infringement have made the company registration on the high priority.
One person company has only one person as a member who will act in the capacity of a director as well as a shareholder. You have an idea...You own it! Start your own one person company.
A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
Partnership firms is a very popular form of business in India. It is when two or more persons come together with a common objective to earn a profit. It cannot be formed by a single person.Read More
There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast growing market, and have access to some of the best human resources in the world. A Foreign National or an entity incorporated outside India can expand his business in following ways mentioned below.
Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to do compliance with the tax rules. The bank account of the branch office can be opened after allotment of Pan Number by the Income Tax Department..
The application for registration of a office of a foreign company is filed in FNC to the reserve bank of India through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have excellent relationship with many banks in India, which certainly help in applying to the RBI and Follow up
After FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the application is submitted to the RBI for their approval. The RBI may seek clarification or any additional document which need to be submitted.
For approval of the establishment of a office in India the Reserve Bank of India is the authority, which is also the central bank of India. The decision of RBI is on the case to case basis, and there is no standard rule which applies in all cases. After approval RBI allots a unique number to the office known as UIN. Usually, RBI decides within 2-4 months subject to its assessment being satisfactory.
After approval of the RBI for the establishment of the office in India, an application for registration of such office of the foreign company is filed within 30 days to the ROC. In case there are Indian directors the DIN number of such director is needed, and the digital signature of the authorised signatory is required to e-file statutory forms with the ROC for their approval..
Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to do compliance with the tax rules. The bank account of the office can be opened after allotment of Pan Number by the Income Tax Department..
After the office is operational, there are various other compliance related activities, which depends on the nature of the business and the state-specific laws, which apply to all entities doing commercial activities. For example registration under shops and establishment act, Goods and Services Tax (GST), Professional Tax Act, Provident Funds Act, Employee State Insurance Act (ESIC), etc.
A Liaison office is also called Representative office is a place of business to act as a channel of communication between the Principal place of business or Head Office by whatever name called and entities in India.
Foreign companies can also set up a Branch office (BO) in India with the approval of the RBI, by registering with the ROC and by doing other business registrations.