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Indian Company Registration

Updated:2018-3-6 11:51:33    Source:www.tannet-group.comViews:142

Indian company registration is governed by the Companies Act 2013. For company registrations In India, the Companies Act of 2013 sets down rules for the establishment of both public and private companies. Private Limited Company is the best choice for foreign investors, as there are lesser number of compliance requirements.

Introduction to a Private Limited Company (PLC)
A Private Limited Company is a Company limited by shares in which there can be maximum 200 shareholders. No invitation can be made to the public for subscription of shares or debentures, and deposits from Public cannot be made or accepted. There are restriction on the transfer of shares.

The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. The minimum number of shareholders is 2.

Requirements on incorporating a PLC in India
1. Shareholders and Directors
There is no need to appoint local director to incorporate a company in India. Foreign nationals can incorporate company in India and hold foreign equity to the extent of 100%, which is dependent upon sector in which company will operate and is subject to approval from either Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB).

2. Share Capital
Shares must be expressed in a fixed amount. “No par value” or “bearer” shares are not permitted. Shares to be subscribed must be expressed in Indian rupees.

The minimum paid up capital at the time of incorporation of a private limited company has to be Indian Rupees 1,00,000 (though it has been omitted by Companies Act 2013). There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of additional stamp duty and registration fee.

3. Accounts & Auditors
Every company is required to appoint an auditor each year at its AGM. An auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and completely independent of the company. Audited accounts of the company serve as tool for various stakeholders like creditors, bankers, investors and revenue authorities.

Documents required for incorporation
1. Details of proposed company to be incorporated (including Proposed names, main objects of the company and authorized share capital);
2. Details of directors and shareholders (full name, father's name, address, date of birth, nationality, occupation, copy of proof of identity and proof of address, photographs);
3. Copy of Certificate of incorporation, Memorandum and Articles of Association, and board resolution (for corporate shareholders);

Once the company is incorporated in India, foreign investor has to either intimate Reserve Bank of India (RBI) of the foreign equity or take approval of Foreign Investment Promotion Board (FIPB). Intimation to RBI or approval from FIPB is dependent upon sector in which foreign investor intends to do business.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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