Tuesday November 21, 2017
Home India An Easy Guide...

An Easy Guide on how US Companies can Enter Indian Markets

Wholly owned subsidiaries are fastest and cheapest entry strategy into India

0
50
Foreign Companies
Wholly owned subsidiary is the cheapest and fastest entry strategy into India. Wikimedia
  • 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.


NewsGram is a Chicago-based non-profit media organization. We depend upon support from our readers to maintain our objective reporting. Show your support by Donating to NewsGram. Donations to NewsGram are tax-exempt.

Click Here- Newsgram.com/donate

Next Story

Indian Travellers Emerging as Key Market for America: Brand USA

According to Brand USA, India ranks 11th in international visitors and also represents the sixth biggest spender with $13.6 billion registered last year

0
22
Brand USA
Sean Donohue, CEO, Dallas Fort Worth Airport Richard Fain, Chairman & CEO, Royal Caribbean Cruises Christopher L Thompson, President & CEO, Brand USA. Wikimedia

Sep 17, 2017: The Indian outbound traveller is now a much-coveted commodity around the world, as the country’s booming middle class seeks new destinations and emerges as a key market.

The Indian market has set a new record as 1.17 million tourists visited the US last year, according to Brand USA, the nation’s first public-private partnership to promote the United States as a travel destination.

“Brand USA has reached the million visitor mark from India, we expect much more growth. This year has seen our largest delegation of our Brand USA India mission with nearly 40 organisations, we actually had a waiting list of people wanting to tap the indian market. And that really shows the importance that India has,” Suzana Shepard, Manager Global Trade Development Brand USA, said during a branding event organized by Brand USA representative Sartha Global Marketing in New Delhi.

In February, Brand USA inaugurated the US-India travel and tourism partnership year in Delhi, led by the US Department of Commerce’s National Travel and Tourism Office (NTTO). The NTTO had forecast a 72 per cent increase in arrivals from 2015 through 2021.

While business travelers and family visits have been the norm so far, more Indians travel to less visited states and try new activities involving adventure and thrills.

“Indians are big consumers of adventure activities and this is exactly what we got in Nevada for them. The US is very much a road trip destination and there is so much to see, different landscapes, just like in India I guess but with a different decor, different people and a great melting pot of cultures,” said Claudia Vecchio, Director of the Department of Tourism & Cultural Affairs in Nevada.

According to Brand USA, India ranks 11th in international visitors and also represents the sixth biggest spender with $13.6 billion registered last year.

“There is really a great opportunity, only one per cent of the population has a passport and there is a growing middle class. It leaves room for a lot development,” Shepard said.

The increasing number of direct flights from India by national carrier Air India has also helped in catering to the tourists’ demand, the latest being Delhi-Washington DC. A couple of years ago, Air India also added San Francisco to its other non-stop flights to New York, Chicago and Newark. The carrier is said to be evaluating a direct flight to Los Angeles as well.

“With the non-stop service from India, San Francisco Airport has seen the traffic back and forth to India grow by 10 per cent, said Melissa Andretta, Director of International Marketing at San Francisco International Airport.

“The United States has always been a prime destination for Indian tourists, the country being home to an important Indian diaspora. We are seeing a lot of FITs coming, a lot of Indian weddings celebrated in Washington DC where an important Indian origin population lives. You can even celebrate Indian festivals like Diwali just like you would do in India as the city organises special decorations and festivities,” said Yi Lu, International Sales Manager at Destination DC.

On the recent visa restrictions on Indian travellers to the USA, Shepard said that they had no impact on the tourism to India and that Indians are warmly welcomed by many Americans. (IANS)

Next Story

US state of Washington asks judge to block President Donald Trump’s new travel ban

0
58
Presidential encyclopedias
US President Donald Trump, VOA

Washington, March 10, 2017: The US state of Washington has said that it would ask a federal judge to block President Donald Trump’s new travel ban, joining Hawaii as the second state to challenge the executive order, the media reported.

The move comes a day after Hawaii launched its own lawsuit, and Washington state Attorney General Bob Ferguson, said that despite the significant changes to the President’s previous executive order, the new travel ban still suffers from legal flaws, CNN reported.

“The revised executive order does narrow” its impact, but “there is still harm,” Ferguson said in a news conference on Thursday.

“This is effectively a Muslim ban”.

Attorney generals from Massachusetts, New York and Oregon also confirmed that they were planning to join the lawsuit. Minnesota is already part of the challenge to Trump’s actions.

NewsGram brings to you top news around the world today.

Trump signed the new executive order on Monday banning foreign nationals from six Muslim-majority countries from entering the US for 90 days and banning all refugees for 120 days, but excluded green card holders and those with existing valid visas from the order.

The original ban included Iraq, but the new order does not. Ferguson said that “change doesn’t pass muster”, reports CNN.

Rather than a seven nation ban, it is only “now a six nation ban”, he said.

“The language is virtually identical”.

According to Ferguson, US District Court Judge James Robart’s current temporary restraining order halting the original travel ban should block implementation of the new executive order as well.

Check out NewsGram for latest international news updates.

Robart had issued a nationwide temporary restraining order blocking implementation of the original January 27 ban on February 3.

White House spokesman Sean Spicer on Thursday said the executive order was consistent with federal law.

“We’re going to go forward on this,” Spicer said, adding “We feel very confident with how that was crafted and the input that was given.” (IANS)

 

Next Story

Gone are the days when doctor said he or she was a call away: Just Click or Swipe now to access specialised Medical attention!

Technology is changing the dynamics of the healthcare industry which is growing at a rapid pace of 17 percent per year to expand to $160 billion by 2017

0
128
Doctors. Image source: Pixabay

News Delhi, Sept 04, 2016: Gone are the days when a doctor said he or she was a call away. One can now just click or swipe to access specialised medical attention. Gone are the days when a doctor said he or she was a call away. One can now just click or swipe to access specialised medical attention.

The healthcare sector is undergoing a revolutionary transformation where medical solutions are being made available to patients just anywhere — and in real time — on their phones.

A flood of healthcare mobile phone applications, or apps, have made it simpler for the patients to seek care.

https://twitter.com/nestmagazineSA/status/771319445277052928

Avinash Kapoor, an executive with a multinational company, was holidaying in the hills when he suddenly had a bout of anxiety. What made it worse for Avinash was that he was completely isolated in a godforsaken place with no health centre nearby. He picked up his mobile phone and a specialist was available to guide him out of the situation.

Technology is changing the dynamics of the healthcare industry which is growing at a rapid pace of 17 percent per year to expand to $160 billion by 2017.

Health mobile applications have become a key tool of taking the care to the hands of people.

“Patients get benefitted in many ways. Firstly, there is no uncertainty. As we are open 24/7, patients can get our service promptly, professionally and pre-emptively,” said Vipin Pathak, co-founder of Care 24, a new age health-care service provider.

Follow NewsGram on Twitter

“The healthcare industry must keep pace with modern technology. Healthcare services need a technology integration to bring accountability and efficiency in the system,” Pathak told IANS.

The healthcare apps are spreading like a rage. Not only patients but doctors are benefiting as well from this technological transformation.

Starting barely a year ago, the New Delhi-based Buzz4Health, a smart platform for doctors, has closed over 150,000 downloads. It has doctors from over 10 countries from South East Asia and the Middle East.

“We believe the next five years will be pivotal in promoting and facilitating evidence-based medicine through technology. More custom and patient specific modalities will become a norm and this will be possible only through collaborative medicine and more open forms of peer to peer communication for healthcare professionals,” said, Hitesh Ganjoo, CEO and founder of Buzz4health.

By 2020, the Indian healthcare market is estimated to grow to over $280 billion and the startups are ready to make their own contributions.

And more is the buzzword. “We need a more skilled workforce of doctors, nurses, lab technicians, more investments, more expansion in rural areas and we need to bring down disease burden,” said Zoya Brar, founder and MD of Core Diagnostics.

She said that Core itself is planning to raise $10 million focusing on advanced testing techniques.

Most of the healthcare industry entrepreneurs said that the health budget of the union government has gone up and the sector is growing rapidly and offers huge potential.

According to Vivek Srivastava, CEO of Health Care At Home, they have so far catered to 300,000 patients across India. They began their services in 2012.

Follow NewsGram on Facebook

He said people approach them because they provide cost effective with excellent clinical outcomes, personalised care by competent professionals guided by customised care plan prescribed by one’s doctor.

Shipra Dawar, founder of ePsyclinic.com, said their “journey has been great. From one patient a day to 200 patients a day, we have grown tremendously in a short span.”

“Technology is solving the huge accessibility gap. At the click of the fingers, through the mobile app and web-based video and text chat sessions, people get in touch with ePsyClinicians,” she said.

She said they plan to take their services to “the smallest of town in India so that anybody who needs mental health and emotional health support finds it from them.” (IANS)