{"id":12159,"date":"2020-05-01T16:54:49","date_gmt":"2020-05-01T16:54:49","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=12159"},"modified":"2024-06-04T12:09:24","modified_gmt":"2024-06-04T06:39:24","slug":"faqs-on-incorporation-of-company-in-india-by-foreigner-or-nri","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/faqs-on-incorporation-of-company-in-india-by-foreigner-or-nri\/","title":{"rendered":"FAQs\u2019 on Incorporation of Company in India by Foreigner or NRI"},"content":{"rendered":"

India is one of the largest and the world\u2019s fastest growing economies in the world. The huge market base has always been an attraction for the lots of foreign investors who wish to invest their money. Further, liberalization of the regulations India is getting more and more foreign direct investment (FDI)<\/a>.<\/p>\n

If any foreigner wants to register an Indian Subsidiary of any foreign company then there might be many queries\u00a0arising in mind for which you would wish to seek answers. Here we have made a compilation of all the topic in questions and answer format for better understanding:<\/p>\n

\"FAQs\u2019<\/p>\n

Q1) We are a company operating outside India. Can we incorporate a company in India and retain 100% of ownership? <\/strong><\/p>\n

Ans. <\/strong>Yes,\u00a0we call it an\u00a0Indian Subsidiary\u00a0company of Foreign Parent Company of your existing company. Indian company Law allow you to retain 100% ownership by subscribing shares of Indian company subject to FDI guidelines<\/a>.<\/p>\n

Q2) Is there any requirement to have a resident Indian to be a director in an Indian company? <\/strong><\/p>\n

Ans. <\/strong>Yes,\u00a0as per the provisions of the act, every company to be incorporated in India must have at least one Indian resident individual as a director. You can call as Indian sponsor in easy language.<\/p>\n

Q3) Is it mandatory to allot any shares to Indian resident Director?<\/strong><\/p>\n

Ans. <\/strong>It is not necessary that a Indian Resident director should also be a shareholder in an Indian Company. As we said, you as a foreigner or foreign company can retain 100% ownership in Indian Company.<\/p>\n

Q4) What is an apostille? <\/strong><\/p>\n

Ans. <\/strong>An Apostille is a specialized certificate, issued by the Secretary of State. The Apostille is affixed with your original document to verify it is legitimacy and authenticity so that is is accepted in one of the other countries who are members of the Hague Apostille Convention.<\/p>\n

Since 2005, India is a member of the Hague Convention of October 5, 1961 that abolished the requirement of legalization of foreign public documents. Moreover, an apostille certificate can be used to authenticate public documents like passport copy, driver\u2019s license copy, business documents, judgements, extract of a register or a notarial attestation.<\/p>\n

Q5) What are the documents required for starting a business in India and registering a Company? <\/strong><\/p>\n

Ans. <\/strong>Following are the documents required from a foreigner to start a company in India:<\/p>\n

In case of Proof of identity<\/strong><\/p>\n

In case of foreign nationals, passport is a mandatory requirement for proof of identity.<\/p>\n

In case of Proof of residence<\/strong><\/p>\n

Address proofs like bank statement, mobile bill, electricity bill, telephone bill and should be in the name of applicant only.<\/p>\n

In case of foreign applicant, address proof should not be older than 2 months from the date of filing of the e-Form.<\/p>\n

The attached supporting documents should be attested\/ apostille by the Consulate of the Indian Embassy, Foreign public notary.<\/p>\n

Q6) Can a non-resident be a director of an Indian Company? <\/strong><\/p>\n

Ans.<\/strong>\u00a0 Yes, a non-resident can become a director in Indian Company if he posses the required documents and one resident director is already on the board.<\/p>\n

Q7) How do we register our business name in India?<\/strong><\/p>\n

Ans.<\/strong>\u00a0 The name of a Private Limited company<\/a> must end with the words \u2018Private Limited\u2019. Proposed Company Name shall adhere with the Company Name Availability Guidelines under Companies Act 2013 and check that there is no trademark registered in the name to be applied.<\/p>\n

If the proposed company is intends to use the name\/trademark of the Foreign body corporate, then No-Objection letters by way of board resolutions\/formal authorization has to be submitted to the Registrar along with other documents.<\/p>\n

Q8) Can foreigners start a company in India?<\/strong><\/p>\n

Ans. <\/strong>Yes, of course they can start the company. This is what is referred to as Foreign Direct Investment and India has several policies in place to encourage this kind of investments<\/p>\n

Q9) How can I check the authenticity of a company in India using its registration number?<\/strong><\/p>\n

Ans.\u00a0<\/strong> You can check the authenticity of companies by visiting the portal of Ministry of corporate Affairs.(www.mca.gov.in<\/a>)
\nGo to MCA services and click on View Company or LLP Master Data to check the master data of companies. Just enter the name of company and get the required information like CIN No., directors\u2019 name and DIN number, Company formation date, Share capital, email address, address etc.<\/p>\n","protected":false},"excerpt":{"rendered":"

India is one of the largest and the world\u2019s fastest growing economies in the world. The huge market base has 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