The arrival of liberalization in India did not manage to be a great idea to help business owners/entrepreneurs in boosting their confidence. This is the reason it is becoming a tough task for the investors and the company or the businesses who are planning to set up their company in India.

However, with the growth in development and economic changes in the government leads towards the healthy growth through the free-enterprises, relieve in corporate issues  and the infusion of investments via different mutually beneficial operations, wherein today’s time India offers a wide range of opportunities to their investors that promises to help them set up a business/company in India. Thus, in the procedure, it ensures with the best profits turning a dream’s business into reality.

For the dream of creating a better future for India and thus promising the ease in business in India. AGC & PARTNERS proves itself as the finest platform. It is a great option to help you get the best entry and exit strategy for the best setting and finest operations in India.

 

Setting up of operations in India-

There are undoubtedly numerous options available to a foreign investor who is dreaming to set up business operations in India. These best foreign companies guarantee up to 100% equity cap, subject to guidelines under the foreign direct investment (FDI) and other relevant provisions-

 

As an Indian company - a foreign investor or say a company who is dreaming to set up their business in Indian processes their operation via two methods i.e. either a joint ventures or being a whole owned subsidiary.

 

As a foreign company - India is also a great option to provide better cost-effective options to the foreign company who is wishing to test the surroundings before building their operations into it:

 

Liaison office - liaison office provides a link between a primary place of an organization which is the country of origin and operations in India. It is a fact that no commercial activity is allowed to be taken in a liaison office and this is the reason it isn’t able to earn much in India. Thus, these are such offices that play a limited role in collecting the finest required information, market opportunities and therefore providing the data about the company and its amazing products to the Indian market. However, on the other hand, with the help of RBI (Reserve Bank of India, which is a Central bank of India) approvals and other assured allowances, like the representative office assures to provide an ease in technical and different financial collaborations between the parent company and its well established Indian partner who promises to provide a great help in the field of import/export businesses.

 

Project Office - project office is a great option to choose to help the foreign entity in setting up a temporary project or say to initiate specific projects in India. These kinds of project offices are only allowed with the certain activities that they can process further. Thus, it won’t be wrong saying that the project offices are limited to execute some certain actions that does not fall under the considerations of the project.

 

Branch Office - foreign companies who are dreaming to require a physical appearance to conduct their business can opt for the branch office facilities. They do not need to set up a separate legal entity, as they can easily choose the option of creating their branch office in India. However, these branch offices are not permitted to set up their own manufacturing unit, as they are only permitted to redistrict the character of an Indian manufacturer.

There is the list of following activities that the branch office of a foreign entity in India allowed to follow are:

• Trade of goods
• Performing professional and advisory services
• Encourages the research work association of the business to the parent company
• Promises an ease in the collaboration of the technical and financial businesses
• Represents the parent company by being a finest buying/selling agent of them.
• Promises the growth of the parent company in the development of the software or IT related queries.
• Offers the best technical support to the parent company by the delivery of best products and services.
• Profitable option for a foreign/airlines shipping company

Foreign Direct Investment – An Easy Route

Overview of the establishment of the finest company in India

In today’s time, the Indian economy is rapidly growing in the world with the finest GDP growth of around 7-8% with the population of almost around 1 billion as per the details of the World Bank data (2016). Right after the 2020 Covid-19 Pandemic the world is seeking a global world destination in the fields of manufacturing, consultation and service industries. That credentials and precedents of India is not new to the world largest economies that have proven its Endeavour in most challenging and even recessional environment. The statistics prove that India is growing itself by delivering a profitable and the healthy economic growth that has already entered the advanced emerging markets thus promising it as a profitable choice for the different foreign investors.

The basic and vital forms of setting up a business in India are:

• Private limited company
• Public limited company
• Limited liability partnership

When we talk from the finest foreign company’s point of view, then the fact can’t be denied that the private limited company is one of great option to choose to start a business in India. Private limited company delivers the limited liability for its shareholders/promotors where the certain restrictions are mandatory to be placed on the ownership. While, a limited liability partnerships has the partners who promises to manage their own businesses making it a great option for a high profitable growth. Whereas for the case of private limited company and public limited company the directors may be or may not be the same as the shareholders.

 

Detailed procedure for the creation of the company-

• The basic and the vital step for the creation of the company in India is the correct filling of an application where the owner of the company selects the unique company name for setting up of the proposed company. The applicant is allowed with the option to deliver at most 2 name choices in the online application form. Where, the proposed name can either be selected or rejected depending upon the scrutiny and consideration by the registrar of companies. In the cases where the proposed name are not accepted by the registrar’s office , then without a worry, two more names can be provided and thus can be easily applied for. The approved name is said to be valid for the maximum period of 20 days from the date of getting acceptance.
• The second step for the proposed director is to receive the digital signature certificate and the director identification number (DIN). As per the recent laws for incorporating a private limited company, a minimum number of 2 directors are required, where one of them must be a permanent resident India. While, on the other hand, to hold a valid director identification number (DIN), is a compulsory factor for all the proposed directors.
• Once the company name gets its approvals, the other drafting of incorporation company formalities takes place where the different documentation are done such as agreements by directors and shareholders, communication and article of association, etc.
• The PAN and TAN are also applied for the same to the company incorporation.

According to the recent rules and regulations, a web-based filing i.e. SPICe+ will be required for the incorporation of the company. where the other document by the eform AGILE-PRO is claimed as a mandatory option for the below following additional registrations for the company subject to applicability:

• The GSTIN number i.e. Goods and services tax identification number
• The EPFO registration i.e. employees provident fund organization.
• ESIC which stands for employee state Insurance Corporation.
• Opening of bank account.
• Once the application gets the clear sign by the office of registrar and the CRC, a certificate of incorporation is delivered to the applicant company as the major evidence of the registration of the company with the MCA (Ministry of Company affairs).
• Apart from this, the company will share the capital, shall not force any business or powers unless it receives the official letter of commencement of business from the finest registrar of the Companies (ROC).

Note - While, instead of filing the separate document of DIN and name application, the person can also fill for the director identification number for the maximum number of 3 directors and the same goes for the proposed company in an incorporation application. However, in this case, the person can efficiently apply with a single name only with the best guarantee of the genuine name delivery.

 

Post incorporation- the end of the legal work is never accomplished with an incorporation of the company. Post incorporation a company is a factor that needs to be entertained in the process of gaining the beneficiary results such as, finest preservation of books, issuing of shares, obtaining the best import and export code (IEC) and assuring the best day-to-day secretarial actions and other major services which the best AGC & PARTNERS services promises to provide their clients with the finest results involving the best compliances and legal services.

Basic principles that AGC & PARTNERS promises in the building up of your company in India:

 

• Assisting the finest view on entry strategy and creation of the most efficient business set up in India.
• Assistance for finest place of business as per the needs and requirements given by the client.
• End to end facilities in the incorporation of the company/ Limited liability partnership/ branch office or the registration office, etc. in India.
• Ease within the opening of the corporate bank account.
• Promising the best investment-related queries solution.
• Assistance while obtaining the various regulatory approvals and registration.
• Assistance in the processing of compliance for the fulfillment of various laws and regulations.
• Maintaining of different account and payroll features.
• Different compliances and fillings under the FEMA that include FLA return, FC-GPR, FC-TRS and the other best RBI filings.