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- It is fairly simple for foreign nationals to establish a company in India
- The entry strategy of wholly owned subsidiary or joint venture is the quickest and cheapest approach that foreign nations/ corporate entities can take
- Here is a guide on how to go about and all that you will need to set up a company in India
August 30, 2017: India, one of the fastest growing economies in the world, attracts a number of business opportunities and investments from abroad. Each year, more Foreign Direct Investments have been flowing into India. With a population of over 1.2 billion, the labor, as well as market, is a great option for companies to expand.
It is often asked how a company based in the US or elsewhere can enter Indian markets and what should be the entry strategy. For example, we have seen our friends in USA asking: “How to register a USA company in India?” or “how to register a company in India from USA?”.
This article will tell you all that you should know to register your company in India.
There are two approaches for the entry into Indian market:
1. Register the company in India itself. This is by far the easiest and fastest entry strategy into India. Most foreign companies prefer to go with this approach. Up to 100% of foreign direct investment into a limited company and/ or private limited company does not require any permission from the central government. It is an automatic route. So clearly, the cheapest and fastest method for foreign nationals’ companies to enter India is to establish the company as either a joint venture or to incorporate it as wholly owned subsidiary.
What is a wholly owned subsidiary? It requires 100% of the shares of one company being owned by another company. For instance, if ABC company owns all the shares of XYZ company, then XYZ company becomes a wholly owned subsidiary of ABC company. To incorporate a wholly owned subsidiary, it is important that the full FDI is permitted inside the country, something that works only in automatic route mentioned above.
2. Establishing Branch/ Liaison Office. This method is not a frequently used entry strategy, mainly because the Project/ Liaison Office requires the approval of the RBI and/ or government, thus, increasing the cost and time invested as compared to the registration of the company in India itself. Important to note here is that a branch office or liaison office cannot be opened by a foreign national, restricting this option only to foreign companies.
What are the minimum requirements for starting a company in India?
Minimum requirements for establishing a company in India are Two Directors, Two shareholders, and an Indian address. Minimum of two directors and two shareholders are required for starting a company in India. The directors should be persons whereas the shareholders can also be another corporate entity. It should also be ensured that any one of the directors should be both, an Indian national and an Indian resident.
The Indian address serves as the address to the registered office for the company. The legal jurisdiction will be applicable on the company of the city where the address is mentioned. India’s major metro cities like Mumbai, Bangalore, Delhi, Chennai are mostly opted by foreign companies to register their company offices.
Most foreign companies preferred the sort of legal entity structure wherein there are three directors. Out of these three, one is an Indian resident while the other two can be foreign nationals. This way, foreign nationals/ companies can own 100% shares as there are no minimum requirements for Indian residents’ shareholding.
What are the documents required for starting a company in India?
Foreign nationals serving as Directors of the company that is being established in India, have to submit copies of their passports and the address proof (such as Bank Statement, Driving license, etc.). The copy of these original documents has to be notarized by home country’s notary.
If a corporate company is becoming the shareholder, the Board Resolution that authorized the investment into the Indian company would also be needed. Additionally, the corporate entity’s certificate of incorporation is also required.
Fortunately, the presence of the foreign national in India is not required during this process, making it hassle-free.
What is the Incorporation Process?
- The two foreign nationals serving as Directors of the company must apply for Digital Signature Certificate (DSC). Also, all the directors of the company must apply for Director’s Identification Number (DIN).
- In form INC-1, the application for the name of the company is required by the applicant.
- When the Registar of Companies (ROC) has approved name of the company, the applicant is to file form INC-7 (Incorporation of Company), DIR-12 (The details of the appointed Directors), INC-22 (Change of address of the registered office).
- Once the documents have been submitted, the ROC fees and stamp duty has to be paid online.
- The ROC then verifies all the forms. For full satisfaction, it may ask to make some changes. Finally, the Certification of Incorporation is mailed.
The wholly owned subsidiary approach has been tried, tested and succeeded on numerous occasions.
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Over the last one-and-a-half-year, people have been vocal about both mental and physical health in relationships. Even while miles away from one another, people kept checking on the health and well-being of their loved ones. However, one issue, i.e., breast cancer has been affecting women throughout the world, and it still needs much more focus and attention.
According to the World Health Organization, in 2020 itself, there were 2.3 million women diagnosed with breast cancer in the world. A report published by National Cancer Registry Programme (NCRP) estimates that breast cancer cases are likely to increase by nearly 20 per cent. Throughout the world, the tenth month of the year is recognized as the month of "Pink October" to raise awareness about breast cancer. The month should also be a celebration of encouraging the women in our lives to take the first step in this journey of staying in "Pink of Health". happen, an international dating app, conducted an in-app survey to understand how Indians discuss health issues like breast cancer with their partners. The survey gave a glimpse of whether health issues are impacting the life and relationships of singles.
41 per cent of users are not aware of examinations related to women's health
Forty-one per cent of users shared that they did not encourage the women in their life (mother, sister, friend, etc.) to go for checkups for issues related to health. Sixteen per cent of the respondents confessed that they did not remind women in their life to take examinations for their own health. It is important to note that regular self-examination is likely to detect breast lumps early. One in eight women will develop breast cancer in her lifetime. If it is detected in time, it will be cured in nine out of 10 cases.
41 per cent of users are not aware of examinations related to women's health. | Photo by Unsplash
49 per cent of users said, "Breast Cancer is not an impediment when in love"
A disease like breast cancer is likely to affect the confidence and self-esteem of women who are diagnosed with the same. With the change in the body, they might feel scared, less confident, and unloved at times. However, when questioned if breast cancer can be a deal-breaker for men, 49 per cent of them shared that it is not a problem.
When questioned if breast cancer can be a deal-breaker for men, 49 per cent of them shared that it is not a problem. | Photo by Angiola Harry on Unsplash
55 per cent believe talking about physical and mental health is no longer a stigma
The past year provided users with an opportunity to be open about their health issues--both mental and physical. Fifty-five per cent of users agreed that they are comfortable talking about such issues even when they still explore the relationship. Thus, establishing how the new generation is not shying away from breaking the taboo and stigmas around the notion of keeping one's health issues secret.
Fifty-five per cent of users agreed that they are comfortable talking about such issues even when they still explore the relationship. | Photo by Unsplash
40 per cent of users believe that a couple's everyday life can be affected by some health problems
A minimal headache can disrupt our whole routine for the day, so relationships are bound to be impacted by the health problems of our partner. Users shared that health issues can bring a little bit of tension and worry in the relationship with their partners. Health issues can be overwhelming for couples; thus, it becomes essential to voice your concerns to your partner. Sharing what you feel will provide you with clarity and make your partner your biggest support system. (IANS/ MBI)
Keywords: Indians, women health, relationship, breast cancer, mental health, examinations
One of the world's largest oil producers, Saudi Arabia, announced Saturday it aims to reach "net zero" greenhouse gas emissions by 2060, joining more than 100 countries in a global effort to try and curb man-made climate change.
The announcement, made by Crown Prince Mohammed bin Salman in brief scripted remarks at the start of the kingdom's first-ever Saudi Green Initiative Forum, was timed to make a splash a little more than a week before the start of the global COP26 climate conference being held in Glasgow, Scotland.
Although the kingdom will aim to reduce its emissions, Prince Mohammed said the kingdom would do so through a so-called "Carbon Circular Economy" approach. That approach focuses on still unreliable carbon capture and storage technologies over efforts to actually reduce global reliance on fossil fuels. The announcement only pertains to Saudi Arabia's efforts within its national borders and does not impact its continued aggressive investment in oil and exporting its fossil fuels to Asia and other regions.
"The transition to net zero carbon emissions will be delivered in a manner that preserves the kingdom's leading role in enhancing the security and stability of global energy markets, particularly considering the maturity and availability of technologies necessary to manage and reduce emissions," a statement by the Saudi Green Initiative forum said.
The kingdom's oil and gas exports form the backbone of its economy, despite efforts to diversify away from reliance on fossil fuels for revenue.
The global summit COP26 starting Oct. 31 will draw heads of state from across the world to try and tackle global warming and its challenges. It is being described as "the world's last best chance "to prevent global warming from reaching dangerous levels. The summit is expected to see a flurry of new commitments from governments and businesses to reduce their emissions of greenhouse gases.
Leaked documents first reported by the BBC emerged Thursday showing how Saudi Arabia and other countries, including Australia, Brazil and Japan, are apparently trying to water down an upcoming U.N. science panel report on global warming. The documents are purportedly evidence of the way in which some governments' public support for climate action is undermined by their efforts behind closed doors.
Saudi Arabia has pushed back against the recommendation that fossil fuels be urgently phased out of the energy sector. Instead, the kingdom is touting, thus enabling nations to continue burning fossil fuels by sucking the resulting emissions out of the atmosphere, according to Greenpeace, which obtained the documents.
The kingdom repeatedly seeks to have the report's authors delete references to the need to phase out fossil fuels, as well as the panel's conclusion that there is a "need for urgent and accelerated mitigation actions at all scales," according to the leaked documents
Earlier this month, the United Arab Emirates - another major Gulf Arab energy producer - announced it too would join the "net zero" club of nations with a target to reach net-zero emissions by 2050.
The UAE did not announce specifics on how it will reach this target but said its Ministry of Climate Change and Environment would work with the energy, economy, industry, infrastructure, transport, waste, agriculture and other sectors on the government's strategies and policies to achieve net zero by 2050.
The UAE says it is home to three of the largest solar facilities in the world and is the first country in the Middle East to deploy nuclear power. (VOA/RN)
Keywords: UAE, Oil Producer, Carbon Economy, COP26, Saudi Arabia
Apple has updated its App Store rules to allow developers to contact users directly about payments, a concession in a legal settlement with companies challenging its tightly controlled marketplace.
According to App Store rules updated Friday, developers can now contact consumers directly about alternate payment methods, bypassing Apple's commission of 15 or 30%.
They will be able to ask users for basic information, such as names and e-mail addresses, "as long as this request remains optional", said the iPhone maker.
Apple proposed the changes in August in a legal settlement with small app developers.
But the concession is unlikely to satisfy firms like "Fortnite" developer Epic Games, with which the tech giant has been grappling in a drawn-out dispute over its payments policy.
Epic launched a case aiming to break Apple's grip on the App Store, accusing the iPhone maker of operating a monopoly in its shop for digital goods or services.
In September, a judge ordered Apple to loosen control of its App Store payment options, but said Epic had failed to prove that antitrust violations had taken place.
For Epic and others, the ability to redirect users to an out-of-app payment method is not enough: it wants players to be able to pay directly without leaving the game.
Both sides have appealed.
Apple is also facing investigations from US and European authorities that accuse it of abusing its dominant position. (VOA/RN)
Keywords: Apple, App store, Epic, Games