Incorporating in India |
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Despite the gradual liberalisation and streamlining of the Indian economy, incorporating in India remains a time consuming and challenging process due to the country's cumbersome bureaucracy. As a result, it is always advisable to be well-informed of the company laws and accounting requirements prior to incorporating in India. |
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Some points to consider with regards to incorporating in India include: |
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India is a popular outsourcing centre for international manufacturers as an alternative to incorporating in India. To protect the intellectual property rights of manufacturers in the country, India is a signatory to the World Trade Organisation (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). TRIPS lays down minimum standards for the protection and enforcement of Intellectual Property Rights in member countries. |
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Foreign investors interested in incorporating in India can conduct business in the country either as a representative office (whose role is restricted to collecting information, promoting exports/imports and facilitating technical/financial collaborations i e no commercial activity), a project office (foreign companies planning to carry out specific projects in India can set up a temporary project/site office in India for that project) or a branch office (foreign manufacturing and trading companies can set up branch offices in India to export/import goods, provide professional or consulting services, R&D, promoting technical or financial collaborations, represent the parent company, act as buying/selling agents etc). |
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A private company cannot offer its shares or debentures to the public. It cannot make or accept deposits from the public and there are restrictions on share transfers. 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. |
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Companies incorporating in India and branches of foreign corporations in India are regulated by the Companies Act, 1956. The Registrar of Companies (ROC) and the Company Law Board (CLB), which both operate under the Ministry of Corporate Affairs, ensure compliance with the Act. |
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When incorporating in India, the minimum paid up capital of a private limited company is US$2,215 , with no upper limit on authorised or paid up capital. |
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A private company incorporated under the Companies Act, 1956 must have a minimum of two shareholders and a maximum of 50 shareholders. |
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| Contact Us | |||||||||||||||||
| For additional information on incorporating in India, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. | |||||||||||||||||
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