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