Earlier NRIs were not allowed to incorporate themselves with Indian Companies without prior permission. But nowadays there is no restriction for foreigners or NRI to incorporate a business in India in the form of a company registered in India.
So, This article is all about various Frequently Asked Questions that generally asked by the NRIs or Foreign companies who are willing to set up their business in India in the form of the new company or their 100% subsidiary.
Q 1. I have a company incorporated outside India, Can I take my business into India with 100% ownership of my company?
Ans: Yes, Indian government is also promoting foreign investment into India so you can incorporate yourself in India as 100% subsidiary company of your Foreign Company by subscribing 100% of shares of Indian Company or You can also run business by keeping yourself incorporated outside India and just having a place of business in India (As a Foreign Company)
Q 2. Is there any rule regarding the residential status of Directors?
Ans: Yes, Every company incorporated in India must have at least 1 Resident Director.
Q 3. When a director is said to be a Resident Director?
Ans: A director is said to be the resident director if he stayed in India for at least 182 days in the previous financial year.
Q 4. We are not a resident of India and we want to Incorporate a company in India, Is It possible 100% shareholding could remain in our hands only or is there any rule of Residential status of the member also?
Ans: There is no provision regarding the residential status of the member. There must be at least a resident director. But a member of the company could be all Foreigners or Foreign companies. So, you can apply for 100% shares of Indian companies irrespective of your residential status.
Q 5. What is an Apostille?
Ans: Apostille is an international attestation that is acceptable in around 100 countries who are the members of the Hague Apostille Convention. India is also a member of that convention since 2005. Apostilled stamp is generally affixed on the reverse side of the document and which authenticated the legality of that document.
Any document bearing Apostilled stamp by any member country of the convention, shall be treated as a valid legal document by all other member countries also.
Q 6. What documents are required if we start to run business in India by forming a Company?
Ans: Following documents will be required for incorporating a company in India:
- Photograph of all the directors and shareholders.
- PAN card of all Indian Directors and shareholders & Apostille ID proof of all the foreign Directors and shareholders.
- Address proof of the registered office of the company ( Electricity Bill, Water Bill, etc)
- No Objection Certificate by the owner of the registered office of the company.
Q 7. Can we register our Foreign Brand Name/Trademark for the company being registered in India?
Ans: Yes, What would be better than this that you can use your own brand name for the new business being set up in India. But for that you need to take approval from the Board or supreme authority of your organization and then that approval will be submitted to the registrar along with other supporting documents.
Q 8. What documents required for Foreigners to incorporate a company in India?
Ans: Following documents are required for foreigners/ NRIs to the incorporate company in India:
- Copy of passport which should be attested by the consulate of the Indian embassy or Foreign public notary.
- A most recent photograph.
- Current address proof which should not be older than one year.
So, all these were common FAQs that were asked by our clients and compiled in this article by us. If you have any other questions or you need any clarity you can reach out to us.