Incorporating a company in India as a foreigner involves additional steps and requirements compared to incorporating a company as an Indian resident. Here is a step-by-step guide on how to incorporate a company in India as a foreigner under the Companies Act:
Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN): The first step is to obtain a DSC and DIN for all the proposed directors and subscribers of the company. These are mandatory requirements for the registration process.
Reserve Company Name: The next step is to reserve a unique name for the proposed company. This can be done by applying to the Ministry of Corporate Affairs (MCA).
Obtain Foreign Direct Investment (FDI) Approval: Foreign companies looking to invest in India must obtain FDI approval from the Reserve Bank of India (RBI) or the Foreign Investment Promotion Board (FIPB), depending on the sector.
Drafting of Articles of Association (AoA) and Memorandum of Association (MoA): The AoA and MoA are legal documents that contain the company's objectives, share capital, and other operational details.
File Incorporation Documents with Registrar of Companies (ROC): Once the AoA and MoA have been drafted and signed by the directors, the company incorporation documents must be filed with the ROC. These documents include the identity proof and address proof of the directors and shareholders, along with other relevant documents.
Obtain Certificate of Incorporation: Once the incorporation documents are verified and approved by the ROC, a Certificate of Incorporation (COI) will be issued.
Apply for Permanent Account Number (PAN) and Tax Account Number (TAN): After obtaining the COI, the company must apply for PAN and TAN with the Income Tax Department.
Register for Goods and Services Tax (GST): If the company is engaged in the supply of goods or services, it must register for GST.
In conclusion, incorporating a company in India as a foreigner involves additional steps such as obtaining FDI approval, and it is essential to follow the guidelines of the Companies Act to ensure a smooth registration process.
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By Siddharth Dalmia
The Startup Sherpa