Register Foreign Company in India

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Register your Foreign Company in India

Foreign Company:

A foreign company is any company or a corporate body incorporated outside of India that has a place of business in India, either directly or through an agent, physically or electronically, and engages in any commercial activity in India. Sections 379 to 393 of the 2013 Companies Act address Foreign Companies. By filing Form FC-1 with the Ministry of Corporate Affairs, Government of India,  a far-off company can establish a business location in India.

Who may register a far-off Company: A foreign entity may establish a Branch Office, Liaison Office, Project Office, or another place of business in India by registering as a far-off Company under the Companies Act of 2013.

RBI Approval:

RBI Approval is required for foreign entities to determine a branch office, liaison office, project office, or another place of business in India. This is often governed by Section 6(6) of the Foreign Exchange Management Act of 1999.

The AD Category-I bank shall consider applications from foreign companies (a body corporate incorporated outside India, including a firm or other association of individuals) for establishing a Branch Office/ Liaison Office/ Project Office in India in accordance with the  Federal Reserve Bank of India’s guidelines (RBI).

An application from a non-Indian resident for the opening of a Branch Office/ Liaison Office/ Project Office in India requires the prior approval of the  Federal Reserve Bank of India and must be forwarded by an AD Category-I bank to the General Manager,  Federal Reserve Bank of India,  headquarters  Cell,  exchange  Department, 6, Sansad Marg,  New Delhi  – 110001.

The non-resident entity applying for a Branch Office or Liaison Office in India must have a solid financial diary, i.e., a history of profitability.

Branch Office:

A profitable diary over the previous five fiscal years in the home country and a minimum net worth of USD 100,000 or it is equivalent.

Net Worth [total of paid-up capital and free reserves minus intangible assets as per the foremost recent Audited Balance Sheet or Account Statement attested by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name known].

Liaison Office:

 A profitable diary over the previous three fiscal years in the home country and a minimum net worth of USD 50,000 or it is equivalent.

A non-viable applicant that’s a subsidiary of another company may submit a Letter of Comfort (LOC) from its parent/ group company,  as long as the parent/ group company meets the prescribed criteria for net worth and profit.

Foreign Company Registration Procedure:

First, it must obtain RBI approval, then establish a Branch Office, Liaison Office, or Project Office in India,  then submit an application to the Ministry of Corporate Affairs, Government of India, for registration as a far-off Company.

Registration With RBI:

The application for establishing a Branch Office/ Liaison Office/ Project Office in India may be submitted by a non-resident entity in form FNC to a designated AD Category – I bank (i.e., a billboard  Category – I bank identified by the applicant with whom they intend to pursue banking relations) along with the prescribed documents mentioned in the form and the Letter of Comfort (LOC), where applicable. The AD Category-I bank shall grant approval to the foreign entity for establishing a Branch Office/ Liaison Office/ Project Office in India after conducting due diligence on the applicant’s background and satisfying itself on adherence to the eligibility criteria for establishing a Branch Office/ Liaison Office/ Project Office, antecedents of the promoter, nature, and site of the applicant’s activity, sources of funds, and compliance with the extant KYC norms. The AD Category-I banks may formulate policies for handling these applications in accordance with FEMA’s regulations and directives.

However, before issuing the approval letter to the applicant, the AD Category-I bank shall forward a replica of the form FNC along with the details of the approval it proposes to grant to the General Manager,  Federal Reserve Bank of India, CO Cell, New Delhi, for allocation of Unique  Number  (UIN) to each Branch Office/ Liaison Office. The AD Category-I bank shall issue the approval letter to the non-resident entity for establishing a Branch Office/ Liaison Office in India upon receipt of the UIN from the  Federal Reserve Bank.

Non-resident companies are permitted to determine  Project Offices in India so long as they have secured a contract with an Indian company to execute a project in India. Additionally, the Project must have obtained the required regulatory approvals; and be directly funded by inward remittances from abroad or be funded by a bilateral or multilateral International Financing Agency, or the Company or entity in India awarding the contract must have been granted a Term Loan by a Public Financial Institution or a bank in India for the Project.

If the Branch Office/ Liaison Office/ Project Office that approval has been granted is not opened within six months of the date of the approval letter, the approval shall lapse. In cases where the non-resident entity is unable to open its office within the allotted time frame due to circumstances beyond its control, the AD Category-I bank may consider granting a six-month extension for the office’s establishment. In this regard,  any longer extension of time requires the prior approval of the Reserve Bank of India.

Once a Branch Office, Liaison Office, Project Office, or another place of business is established in India, it must register with the Registrar of Companies (ROCs) if required by the Business Act of 2013.

Foreign Company Registration with MCA under Section 380(1) of the businesses Act of 2013:

Within thirty days  of building  a place of business in India, every foreign Company must submit  the subsequent  documents to the Registrar for registration:

  • A certified copy of the Company's charter, statutes, memorandum, and articles, or other instrument constituting or defining the Company's constitution, and if the instrument isn't in English, a licensed English translation thereof;
  • The complete address of the Company's registered or principal office;
  • A list of the Company's directors and secretaries that includes any prescribed information;
  • The name and address or names of 1 or more persons authorized to accept on behalf of the company service of process and any notices and other documents required to be served on the Company;
  • The complete address of the Company's office in India is considered to be its principal place of business in India.
  • Information regarding the opening and shutting of a business in India on a previous occasion or occasions;
  • A declaration that none of the Company's directors or authorized representatives in India have ever been convicted or disqualified from company formation and management in India or abroad;
  • Any additional information which will be required; and
  • The application must also be accompanied by an attested copy of approval from the Reserve Bank of India under FEMA Regulations and also from other regulators, if any, is required by the Foreign Company to determine a place of business in India or a declaration from the Foreign Company's authorized representative that no such approval is required.

Registration with Police Authorities:

Applicants from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong, Macau, or Pakistan who wish to open a Branch Office, Liaison Office, or Project Office in India are required to register with the state police authorities. Copy of approval letter for ‘persons’ from these countries shall be marked by the AD Category-I bank and forwarded to the Ministry of Home Affairs, Internal Security Division-I, Government of India,  New Delhi for appropriate action and record.

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Get Certificate, DINs, DSCs, MOA, AOA, PAN, TAN, GST, MSME, IEC, PF, ESI, PT*, Bank A/c, Share Certificates & GST Software along with your CIN under 10 working days!

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What All You Get
  • Certificate of Incorporation
  • Articles of Association
  • GST Registration
  • Import Export Code
  • Digital Signature Certificates
  • Company PAN
  • MSME Registration
  • Commencement of Business
  • Director Identification Numbers
  • Company TAN
  • PF Registration
  • Company Resolutions
  • Memorandum of Association
  • Company Bank Account
  • ESI Registration
  • Company Agreements

Why Business Setup in India?

Since our inception as an Official Company Registration Agent, we have maintained close ties with the Ministry of Corporate Affairs, Government of India. From day one, our intention has been to offer a streamlined incorporation procedure that is quick and easy to utilize. Today, our system for company registration is among the most efficient and effective in India. You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days. In addition to maintaining affordable pricing for company formation, we are constantly investigating new ways to bring value to our clients. We are proud to be one of the least expensive ways to establish a business in India.

We have the knowledge to advise clients on the appropriate company structure to implement. The majority of our clients want assistance registering a business limited by shares. The limited company structure is prevalent because it permits the distribution of profits to shareholders while safeguarding them through restricted liability. Our team has more than 2 decades of experience founding companies and providing corporate and secretarial services, which aids in the growth of tens of thousands of our clients’ enterprises each year.

We are tremendously passionate about the quality of our service, and we are incredibly proud of the reviews we get from our customers, as evidenced by our outstanding reviews and ratings. Continually, our team is chosen due to the value and skill for which it is renowned. We have helped form the industry by giving our customers innovative business services and packaged solutions that have grown alongside their demands.

Our clients have access to complimentary help from a team of experts. We are always prepared to assist. Throughout the registration of your Company, you will be enabled to contact us by phone or email if you require assistance.

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No Hidden Charges

We believe in transparent and straightforward pricing. The price displayed is the price paid. There are no additional fees associated with business registration.

Rapid Service

You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days.

20 Years of Expertise

Our staff has over 2 decades of experience, making us specialists in our industry. Take the stress out of establishing your business, and rest easy knowing you have the assistance you need to thrive.

Reliable Service

Today, our customers expect exceptional service. Because of this, we are very pleased that 99 percent of our customers have rated us as "Great" or "Excellent" on Google.

Simplicity

The entire procedure, from ordering to utilizing your company registration license, is designed to be as simple and direct as possible to aid in the growth of your firm.

Privacy and Protection

ustomer confidentiality and safety come first. We safeguard your financial, business, and personal information to the utmost degree.

What Comes Next After Foreign Company Registration?

Congratulations on the registration of your new business! The bulk of entrepreneurs does not know what to do after registering their Company. The opposite mandatory registrations and statutory compliance requirements of a company are listed below.

Annual Compliance for Foreign Company

Appointment of First Auditor Within 30 Days

you want to appoint a First Auditor of the Company within 30 days of the date of incorporation and file Form ADT-1 with the MCA within 15 days of the appointment, or a maximum penalty of Rs. 3,900/-  are going to be payable.



Business Commencing Within 180 Days

You must file Form INC-20A with the MCA declaring the deposit of Share Capital amount within 180 days of Incorporation; else, the MCA will strike out your Company. A few banks also require you to submit this form, failing which they will not activate your Company's Current Account.

KYC Director

Before or on September 30. Every director who has been issued a DIN by the end of the financial year and whose DIN status is "Approved" will be required to submit form DIR-3 KYC by the 30th of September of the next financial year. Failure to file incurs a fine of Rs. 5,000 per Director, and the MCA will deactivate his or her DIN.

Board Meetings

Every Company is required to have a meeting of its Board of Directors once every quarter.

General Annual Meeting (AGM)

Every Company is required to have an Annual General Meeting of its members on or before September 30th, within six months of the end of its fiscal year.

Annual Report Within 30 Days of Annual Meeting

Every Company has to file its Annual Report on Form AOC-4 with the MCA within 30 days of its AGM.

Annual Returns Within Sixty Days of the AGM

Every Company must file its Annual Return on Form MGT-7 within sixty days of its AGM.

TDS Return

Every Company required to file TDS returns must do so within 31 days at the end of each quarter to avoid incurring penalties.

PT Return

Every Company must submit its Monthly PT Return on or by the 15th day of the next month to avoid incurring penalties.

GST Returns

within 20 days of the quarter's end

Any company required to file GST returns using QRMS must do so by the deadline or face fines.

Form 1040 Return

Every Company is required to file its annual tax  Return on Form ITR-6 by September 30th or before.

Yearly Activity Certificate (AAC)

Branch Office or Liaison Office must submit the Annual Activity Certificate (AAC) to both the AD Category -I bank and, therefore, the  Director General of Income Tax (International Taxation), New Delhi, whereas the Project Office is merely required to submit the AAC to the designated AD Category -I bank.

Different Registrations

Registration for GST

If you are a taxable dealer in the sale of Goods or the provision of Services, you are required to register for GST.

Import Export Code

Import Export Code (IEC) registration is required if you deal with the import or export of goods or services

FSSAI Registration

You must submit an application for a Food License to the Food Safety and Standards Authority of India if your firm specializes in Food, Catering, Hotels, or Restaurants.

IPR Registration

If you wish to protect your business name, brand, literary work, or invention, you must file an application for Trade Mark, Copyright, and Patent with the Indian department of Intellectual Properties.

Business Tax Registration

Companies registered in India must pay a professional tax. It is not obligatory in every jurisdiction; in fact, only 17 states require it.

Stores & Businesses Registration

Shops and establishments are required to register with the relevant state labor department.

PF Registration

If your Company is subject to the PF Act, you must obtain PF Registration. Now that MCA provides PF Registration along with Incorporation, you are no longer required to submit a separate application; nonetheless, you must enroll employees once the threshold limit is exceeded.

ESI Registration

If your Company is subject to the ESI Act, you must obtain ESI Registration. Now that the MCA provides ESI Registration along with Incorporation, you are no longer necessary to register separately; nonetheless, you must enroll employees once the threshold limit is exceeded.

Local Trade License

The new business must submit an application for an area business license to the local municipality or municipal corporation.

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Let's Deal With Your Confusions

DIN is the abbreviation for Director Identification Number. Following the incorporation of the Company, every director will be assigned a unique Director Identification Number. With this DIN, he or she can register an unlimited number of businesses.

A DIN holder is required to submit his KYC to the MCA annually by the 30th of September or face a penalty of Rs. 5,000/-.

DSC is an abbreviation for Digital Signature Certificate. Shareholders must possess a Class-III Digital Signature Certificate in order to register their organization.

There are various organizations that issue Class-III DSCs. These organizations are referred to as DSC Certifying Authorities. We have formed a partnership with eMudhra Tamil Nadu. eMudhra is one of India's most prominent Digital Signature Certifying Authorities.

Approved share capital is the maximum amount of capital that shareholders are permitted to invest in the Company. In actuality, this is the permitted investment limit for Equity Share Capital.

Paid-up share capital is the amount of money shareholders deposit into the Company's bank account towards share capital.

Now, a business can be registered with a minimum share capital of Rs. 2/-or investment of Rs. 1/- from each shareholder.

A CIN is an identification number assigned to a company by the Ministry of Corporate Affairs when they are issued the Certificate of Incorporation.

It might serve as the Company's identification number.

If we apply for direct incorporation without a Certificate of Name Availability, the process could take between three and five business days. Occasionally, it can be implemented in a single day.

However, it is recommended to apply for a company name before incorporation, which may take between 10 and 15 days.

Yes!

No, you cannot register a company on your own since Professionals such as a Company Secretary or a Chartered Accountant must digitally sign the application forms alongside a Director before your Company can be registered.

Including Digital Signature Certificates, the total government fee for a one million authorized share capital company would be approximately Rs. 4,000.

XYZ is authorized by the Ministry of Corporate Affairs to provide company registration services at an affordable price of Rs. 1,999/- throughout India.

INR 5 Lacs/-.

Yes!

Rs. 6000/- plus stamp duty. In India, Stamp Duty varies from state to state.

It can take around 30 days.

FCRN stands for Foreign Company Registration Number.

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At Business Setup in India, we simplify the process of starting and running a successful business. Our expert team offers comprehensive services, from legal support to accounting and business advisory, tailored to meet the needs of entrepreneurs and companies.

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