Startup Registering a US Company in India | How to Register US Company
Learn the process of registering a US company in India.
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How to Register & Set Up a US Company in India
As a US entrepreneur, starting a business in India can be extremely rewarding, but it requires managing complex regulatory procedures and approvals from the various government in India. In this blog we will lead you through the process of Incorporation and registration of a US corporation in India, including all the paperwork and various stages you need to know.
Introduction
India is a growing economy and is on path of achieving 5 Trillion economy and today is regarded as most favorable business environment for foreign companies due to various initiatives taken by the government. Also the Companies Act, 2013 has allowed Non-Resident Indians (NRIs) and foreign nationals to set up businesses in India with ease and with minimum compliances.
Today, In this blog will cover various steps that are required to register a business in India to ensure compliances of local laws and regulations.
Choosing the Right Business Structure
Before registration, management of the company should decide on the type of business entity that best suits the needs. The most frequent used registration option for US entrepreneurs in India are:
1. Private Limited Company
Registering a Private Limited Company in India offers limited liability to its directors and is the most preferred option for foreign companies because to its easy to register and limited liability concept.
2. Limited Liability Partnership (LLP)
LLP in India has a dual advantage of a partnership firm along with a corporation, and provides partners with limited liability.
3. Branch Office
It is only suitable for US Corporate or foreign companies who want to operate in India without establishing a new company.
Steps to Register a US Company in India
1. Obtain a Digital Signature Certificate (DSC)
DSC is physical token and is required to sign electronic documents which are to be submitted to various government authorities and MCA. DSC can be applied through India's certification authorities.
2. Register at the MCA Portal
This is first step in Company registration in India. Company need to create an login account on the Ministry of Corporate Affairs' (MCA) portal, which is again a mandatory requirement for all types of company registrations in India.
3. Apply for a Director Identification Number (DIN):
Every Director in India is allotted a unique Din Number which is Director’s Identification for all legal purpose. Company need to fill the SPICE form, which will include personal information as well as confirmation of identity.
4. Name Approval:
Post obtaining DIN number company need to submit a name application using the MCA portal's RUN (Reserve Unique Name) service. Management should ensure that the name identified for registration in India is unique and follows naming guidelines.
5. Drafting the Memorandum of Association (MOA) and Articles of Association (AOA):
MOA is the document which will have details of the company’s constitution and is the foundation of the company’s capital structure and AOA is bye-laws and regulations that control or govern the conduct of its business and manage its internal affairs. These documents are charter of the company and will describe the company's objectives and governance structure. These documents must be submitted alongside the registration application.
6. File the Incorporation Application:
Company need to send the SPICE form, along with the MOA, AOA, and other necessary documents, to the Registrar of Companies (RoC).
7. Obtain a certificate of incorporation:
Post confirmation of application from the RoC confirms, company will get a Certificate of Incorporation, which is essentially a formally document stating company registration is successful.
8. Apply for PAN, TAN, and GST registration.
Post incorporation of Foreign Company in India, Company should apply for a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and Goods and Services Tax (GST) registration to adhere to various other compliance requirements post incorporation of US Business in India.
Documents Required to register a company in India
To successfully register your company, you will need the following documents:
- A copy of your valid passport
- A copy of your driver's license
- Voter ID or Social Security Number
- Bank statement from your home country
- Recent passport-sized photographs
- Proof of residence (issued by the Indian embassy if applicable)
- A valid business visa
- For foreign companies: Certificate of incorporation and a board resolution
FAQ on How to register a US company in India
Q1: Can I set up a Company in India without being physically present?
Yes, the Companies Act allows foreign nationals to create a business in India without being physically present, However they should have atleast one Indian resident director.
Q2: What form of business structure works best for international companies?
A Private Limited Company is most preferred and most recommended structure for international businesses due to its limited liability and favourable tax structure.
Q3: How long it will take for US company to Register in India?
The registration process of US Subsidiary in India can take several weeks (3-5 weeks), depending on the extent of your documents availability.
Q4: Are there any limits on foreign investment in India?
There are certain defined industries for which there is limits on foreign direct investment (FDI). It is recommend to check the FDI policy that applies to your business industry before doing FDI.
Q5: Should I engage a local CA firm for Registration of Foreign Company in India?
Jordensky, is an top notch consultant who has got deep expertise in setting up Foreign companies in India and has managed to advised for more than 200+ foreign companies and 50+ US companies setting up India Office.
