How to register your own Company in India from the USA?

THE INDIAN COMPANIES ACT, 2013 allows non-resident Indians to register a company in India without being physically present, as long as a few conditions are met. In this article, we will discuss How to incorporate your own company in India from the USA? First and foremost, you must decide which business entity you will form based on your business model. There are many options available, including a partnership, LLP, or private limited company.

Private Limited Company: The best option since there is no central government or RBI approval required.
Proprietorship or Partnership: In general, unorganised players are required to obtain RBI approval before participating.
Limited Liability Partnership: Approval by the central government is required for the partnership concept.
Registration of Branch, Liasion: It is too expensive to set up, plus the RBI and the central government must approve it in advance.

Registration as a private limited company or limited liability partnership, however, involves lesser compliance and legal responsibilities. Therefore, non-resident Indian companies are incorporated as Private Limited Companies or Limited Liability Partnerships in India.

Private limited company:

A private limited company is a firm that is owned by its shareholders. The stockholders own it privately, and the maximum number of shareholders shall not exceed 200. A private limited company's liability structure is similar to that of a limited partnership, with a shareholder's responsibility restricted to the amount of shares they own. The stockholders cannot be held accountable for anything other than the value of their shares. The goals of a private limited business are decided before it is registered. Similarly, the Ministry of Corporate Affairs is in charge of such a firm (MCA).

List of documents needed for registering a company in India from the USA:

You need to submit the following document:

A copy of your valid passport
A copy of the Driving license (DL) from the issuing country.
Voter ID
Social Security Number
Bank statement of your bank
Photographs
A resident permit that is issued by the Indian embassy
A copy of a valid Business visa that is issued to the foreign national

The documents required for a foreign corporation to register a company in India

A certificate of incorporation which proves that the company has been legally incorporated
A board resolution of the foreign company
Valid address proof

Registration requirements for a company in India from the US:

At least one Indian director must reside in India, along with all the necessary documents and KYC information.
In addition, you should verify the Foreign Direct Limit since in case the sectors are subject to the Automatic Route process, you will not require RBI's prior approval. If you choose a sector where 100% FDI is allowed, you will have to seek a permit from the relevant ministry or RBI to start a business. Next, you need to prepare a name application for your company, a Memorandum of Association and an Article of Association for your proposed company.
Make sure that you have all the necessary documents for registration and that they have been notarized by the relevant officials.
Application for Incorporation once the documents are in place.
Obtaining a certificate of incorporation proving the existence of the company.
A physical presence of the resident director is required for the opening of a bank account for the COMPANY REGISTRATION.
Application for PAN, TAN & GST from the Central and State Governments.
A newly formed company must file an FDI report with the RBI to ensure compliance with all legal & paralegal requirements.

In the event the central government and the registrar of companies are satisfied with the documents and attestation mentioned above, they will issue the impending certificate of incorporation with RBI’s green signal where needed.

Getting the above task done might require professionals. IndiaFilings has an experienced team that can help you with USA company registration in India. Get in touch with us and we will be glad to assist you.

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Frequently Asked Questions

Common questions about Register Your Company in India from USA.

Yes, non-resident Indians can register a company in India without being physically present, as long as certain conditions are met, as per the Indian Companies Act, 2013. This allows for the incorporation of a company from the USA or any other country.

The common types of business entities a non-resident Indian can form in India include a private limited company, a limited liability partnership (LLP), a partnership firm, or a proprietorship. However, a private limited company or an LLP is generally preferred due to lesser compliance requirements.

Some of the documents required include a valid passport copy, driving license, voter ID, social security number, bank statement, photographs, resident permit from the Indian embassy, and a valid business visa issued to the foreign national.

Yes, it is mandatory to have at least one Indian resident director to register a company in India from the USA, along with all the necessary documents and KYC information.

The role of the RBI is to provide approval for certain sectors where Foreign Direct Investment (FDI) is subject to the approval route process. In sectors with 100% FDI allowed through the automatic route, RBI approval may not be required.

The key steps include preparing necessary documents like the Memorandum of Association and Articles of Association, submitting the incorporation application, obtaining the certificate of incorporation, opening a bank account, applying for PAN, TAN, and GST, and filing an FDI report with the RBI.

While it is possible to register a company in India from the USA without professional assistance, it is generally recommended to seek guidance from experienced professionals or firms to ensure compliance with all legal and procedural requirements.

The certificate of incorporation issued by the Registrar of Companies is a legal document that proves the existence and registration of the company in India. It is a crucial document required for various purposes, such as opening a bank account, obtaining licenses, and conducting business operations.

Yes, there is a limit on the number of shareholders for a private limited company registered by a non-resident Indian. The maximum number of shareholders cannot exceed 200.

In a private limited company registered by a non-resident Indian, the liability of shareholders is limited to the amount of shares they own. Shareholders cannot be held responsible for anything beyond the value of their shares.