10 steps to incorporating in India
Registration of a company in India follows a complex process, especially when foreign investors and directors are involved as the same have to go through multiple Government approvals and registrations. Please find below information on the steps followed by our Firm to assist our Clients complete their India business setup projects:
- Engagement with Client: Before proceeding with an engagement, Healy Consultants Group PLC will request our Clients to i) complete and sign the engagement letter and return us the same to our office, along with at least 75% of the due diligence documents and ii) settle engagement fees. We then supply a detailed engagement plan detailing each step of the engagement;
- Digital Signature Certificate (DSC) (Part I): Our Client provides i) 2 passport size photographs and ii) notarized copies of passport and address proof (eg. an electricity bill) for each director and shareholder;
- Digital Signature Certificate (DSC) (Part II): Our Firm then submits an application for Digital Signature Certificates (DSCs) from the Certifying Authority, which will allow Indian company directors to e-sign and upload forms to the Registrar of Companies and Ministry of Corporate Affairs (MCA);
- Director Identification Number (DIN): our team then fills in a DIN-3 application form together with a signed DIR-4 on the Ministry of Corporate Affair’s website to obtain a Director Identification Number for all directors.
- Company name reservation and company incorporation: Healy Consultants files the Integrated Incorporation Form INC-29, which includes i) company name reservation ii) Memorandum and Articles of Association and iii) subscriber sheets, which must be handwritten and have signatures witnessed by a Public Notary in our Client’s home country. For company name reservation, our Client will be required to provide 6 different company name options to ensure approval according to the MAC guidelines;
- Corporate income tax registration (PAN and TAN): After obtaining the MCA issued Certificate of Incorporation, Healy Consultants completes online tax registrations with Income Tax Department (ITD). The process requires to e-file i) form 49A to obtain a Permanent Account Number (PAN) and ii) Form 49-B to secure a Tax deduction and collection Account Number (TAN). If required, we also register the company for VAT;
- Corporate bank account opening: Our Firm assists our Client to open a local multi-currency corporate bank account with a top tier Indian bank, by submitting a complete and detailed application;
- Injection of share capital: Once the corporate bank account has been approved, our Client must deposit the minimum share capital of US$1,650 (INR100,000) within 2 months. Our Client then provides a certificate of deposit to obtain a Foreign Direct Investment Certificate from the Reserve Bank of India.
- Application for social security: If necessary, Healy Consultants assists our Client to register for social security with the Ministry of Labour & Employment;
- Engagement completion: The process of India company registration is complete. Our Firm then couriers a full company kit to our Client including the following documents: i) original corporate documents ii) unopened bank correspondence and iii) feedback form.
List of documents required for incorporation
The following are necessary to incorporate a company in India:
- Notarized passport copy and proof of address of all directors and shareholders;
- Passport pictures of all directors and shareholders;
- Forms DIN-3 and DIR-4 for DIN application;
- Form INC-29, INC-1 and MOA&AOA for name reservation and company incorporation;
- Form 49A for PAN;
- Form 49-B for TAN;
- Forms VAT-1 VAT registration;
- All forms are available for download at the Ministry of Corporate Affairs website.
Frequently asked questions
Is it mandatory to appoint a resident company secretary for a newly incorporated Indian business?No. A company secretary will only be appointed if the share capital exceeds US$811,600 (INR 50,000,000).
What are the minimum capital requirements for incorporating an Indian company?The minimum share capital requirement for a new company in India is US$1,650 (INR 100,000).
What is the incorporation timeline for an Indian company?On an average, it can take up to 5 months to start an Indian company.