Written by : DG Gupta
A financial professional, qualified Chartered Accountants and Company Secretary examinations and enriched with experience of all types of accounting, taxation and compliance of Manufacturing as well as Service Industries
As a rapidly developing economy and commercial domain, India is attracting numerous foreign entities and multinational companies. More so, it has an ever-expanding service sector and manufacturing hub in the country. The economy of any country is dependent on its human resources and goods-producing capacity. Many companies are now shifting their operational base to south- Asian countries. India is one of the principal territories for such multinational ventures. Thus, this pacing economy has attracted investments from investors all around the world. The non-resident Indians or NRIs are also among those folks who are greatly inclined to set up their business in India.
Here are some of the reasons behind India as a lucrative destination for NRI and foreign investment.
Both individuals and institutions can reap huge gains from the Indian market with its rapidly growing economy and consumer spending power.
Now being a foreign investor, you can set up or invest in any of the following two types of companies in India:
Private limited companies are more feasible and easy to set up than the latter for NRIs. The Indian law does not permit foreign national investment in other types of entities such as a proprietorship or a partnership. Thus, incorporating a company seems to be the most practical option.
Private limited companies can be the most beneficial and prosperous for NRIs since –
Once all these documents are prepared, you can move forward with the successive steps to set up your base in India:
The registration process of companies in India has recently shifted to virtual spaces and eased the task a little. The recent registrations are completed using the SPICe plus web portal.
Part A: In this section, you can apply for registering the name of the company with the ROC using SPICe plus. You can also seek name approval and register your proposed company in one go with the Part A form.
Part B: This part of the form includes the registration for the following services:-
You have an option of first filling Part A and seeking approval for the name of the company and further filing Part B for the incorporation of the company, or you can simply file both of them together and completing the process in one go.
A person needs a series of documents to complete the process. The documents list starts with proof of nationality and also mandatorily needs a PAN card. This is followed by identity proof such as a passport. As mentioned earlier, one of the directors must be a resident of India, and he/ she must have residence proof that must include an electricity bill, a bank statement, and a driver’s license. Further, the office address needs to be verified with an electricity bill on that address, a gas bill, a water bill, NOC from the premises owner, and a postpaid telephone bill or mobile bill. If the registration is done from India, then the list ends here. If not done from India, all the documents must be attested or apostilled and notarized. This also includes MOA, AOA, address proof, etc.
Once both the forms are filled and submitted online on SPICe plus and all the documents are cross verified by the officials, the procedure is complete. This takes nearly a month or so. Furthermore, your company will get registered, and you can begin your commerce journey in India.
The process of establishing a company in India can seem like a complication. However, Gotaxfile can act as your professional advisor. Gotaxfile is a web firm built by a team of driven professionals who ease your business registration process by leaps and bounds. Through their mentorship and advisory programs, every step you take for the company is supervised and corrected. Gotaxfile helps you in making those difficult financial choices. Apart from this, Gotaxfile can help you in filing your income tax returns, filling out your forms, and even help you with its outsource bookkeeping services too. With Gotaxfile, you will always step the foot in the right direction. And all this from the comfort of your home!
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