India is not the same as it was a few decades ago when the very idea of starting a business in India was thought to be a big hassle. Many hard wired doubts and fears do not exist anymore and anyone, NRI or a foreigner is welcome to do business in India. The very first thing that you need to do is to select a name and seek approval through Form 1A available from the register of companies in the state by paying $11.
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MOA and AOA has to be drafted
You can complete all the other formalities as the form stays valid till 6 months while the process of registration takes 3 to 5 business days. You will have to draft the Memorandum of Association costing $5 and the Articles of Association would cost you 0.15 percent of the authorized share capital and both of them will be ready within 3-4 business days.
While the MOA will list the objects for your company, the AOA will contain the regulations like share capital and share of each director and the rules that will bind the company during its course of business on India.
The primary reason why many foreigners and NRI’s are checking out India as a possible as well as viable business destination is the predominance of English as the language of commerce in India.
Much of the age old fears have been proved wrong in recent years and with the government surging towards reforms and liberalization of the former closed economy, there has been a paradigm shift in the way modern India conducts business. If you are toying with the idea of choosing an Asian destination for your venture, India scores over China.
Unlike China, India is a stable democracy and has a press that is free. Every action of the government is open to scrutiny and is accountable as well. India has a large middle class which outnumbers the total population count in many advanced countries. The middle class has the money to buy the latest goods and services and are lucrative enough for business organizations the world over to take a deep interest.
33 days to start off a business
If you check out the latest report from the World Bank, you would find they have calculated that it takes just 33 days to kick off a new business in India these days. There are single window clearances nowadays in India for new businesses to start up operations and you don’t have to run from pillar to post to get several licenses. India is investor friendly and many foreigners have made India their home and are busy catering to the growing middle class market.
After the MOA and AOA you need the original document allotted to you for setting up your company. The last document is a power of attorney signed by all the subscribers of the MOA and it states the name of the person who has been approved and is responsible for accepting the certificate of incorporation of the company. You have now completed all the formalities required to do business in India.
After the company is formed in India, the ministry of company affairs, or the MCA, will provide you with the certificate of incorporation. It is a certificate that indicates that you are ready to conduct the business you have set out to do.
FDI or Foreign Direct Investment has been liberalized over the years and you can invest in a joint venture by setting up a subsidiary with 100 percent foreign shareholding. The process is simple and the guidelines streamlined to draw in more investment in the future.
If you are a individual or a foreign company registered outside India; in countries like USA – United States of America, U.K – United Kingdom, Europe and still have any questions regarding what are the required documents to form a company in India, or want to assistance regarding: Incorporating a company in India, how to open a branch office, setting up a project office, starting a joint venture with a Indian company, forming a subsidiary in India, Negotiating business agreements, starting up an Outsourcing company in India, Drafting Agreements, company formation in India; then please feel free to contact us.