Do I Need to Register My Company in India If I Already Have Registration in USA?

Posted by Enterslice on January 17th, 2018

India is one of the fastest developing countries of the world with exemptions & benefits for various startups & ventures. Also, there is a boost in FDI because of liberal regulatory requirements in past few years.

Yes, an OFFSHORE USA Company can be set up in India, in two manners:

-          Wholly owned Subsidiary of the US Company; operating through an Indian registered space.

-          Branch Office/Liaison or representative office of the US Company; operating through virtual space. (It will be called as Foreign Company)

-          As a Foreign Company i.e. it can operate under the same company name as a Foreign Company

2(42) Foreign company means any company or body corporate incorporated outside India which-

a.) has a place of business in India whether by itself or through an agent, physically or through electronic mode;

b.) conducts any business activity in India in any other manner

-          Register a fresh Indian Company i.e. called as Indian Company

 A). Wholly Owned Subsidiary of US Company:

        Subsidiary creation of an overseas company is very similar to that of a normal Private Company incorporation usa, just the compliances & fee structure are high owing to foreign investment involved.

 Major requirements:

 -          Application of name availability

-          Obtaining DSC & DIN of both the Directors on the board of subsidiary (nominated by foreign entity)

-          Drafting of MOA & AOA; Make sure documents of the Foreign National/Citizen are duly Notarized by the Public Notary of that Foreign Country and Apostilled or Consultative, whichever is applicable as per the Hague Convention.

-          Company incorporation with ROC, MCA India

-          As FDI comes in, so the necessary compliance of FCGPR needs to be done with RBI.

B). Procedure for setting up Branch/Liaison Office:

-          Prior Permission of RBI

-          Necessary documentation to be filed in an accurate manner

-          Check the FDI Limits

-          Registration of Branch office

-          Application to the regional office of RBI, Mumbai in Form FNC-1

-          Compliance with all the necessary certifications & licenses like GST, Shop & Establishment, Trade License, Lease contract.

C). Foreign Company:

- Prior permission of RBI in FNC Forms.

- The application should be signed by the authorized signatory of the Foreign Company with the prescribed documentation.

-The company should have a profit-making record for last consecutive 5 years & should enclose Financial Statements for the last 3 years.

- Submission of all the proofs for the opening of Foreign Company in the same name along with business scope validation & brief description of organization profile.

- The worth of company should be USD 1,00,000.

D). Register Fresh Indian Company:

This is just like incorporating a fresh Indian Private or Public Company under Indian Companies Act, 2013.

Kindly check for the necessary compliances related to FDI acceptance.

Entry for business in India by a Foreign Company is very much liberal after the launch of Make in India & Ease of Doing Business by the Government Corporate Panel. Liberalization in Taxation Structure along with Foreign Direct Investment has made setting up rather incentivized.