Company registration in India
For the effective implementation of business activity and its further development to the international level, the following components are required:
• Competent management.
• Optimal political situation inside the country.
• Effective current legislation governing the functioning of the financial sector.
• Loyal attitude of government bodies to business objects.
• Stable national currency.
And if the first item has no dependence on the country in which the company is registered, the last three directly relate to the country of incorporation of the company. And if these aspects for one reason or another are absent (or are presented in an inappropriate form), then entrepreneurs for the further development of the company and ensuring the stability and security of its operation should reflect on the possibility of registering the company abroad. And it is here that they face the main question: which country to choose?
Currently, there is a whole list of states with a strong and stable economy and legislation that is beneficial for business activities. Many businessmen choose wellknown offshore zones (Cyprus, Panama, etc.) to register their companies. But there is another country that is an extremely profitable place to open a company for foreign investors. This is India.
What types of companies are allowed to register in India?
Today, current Indian legislation allows for registration of two main types of companies:
• Private company.
• Open company.
The key features of a private company are the following aspects:
• Companies of this type are prohibited from transferring their shares.
• Minimum number of founders – 2 people. Maximum – 50.
• The prohibition of issuing valuable or debt documents by attracting individuals extends to private companies.
• For setting tax rates, higher values are used.
• The founders are not subject to any restrictions on decision–making regarding the activities of the enterprise.
Public companies include private enterprises that meet the following criteria:
• The company owns at least one fourth of the paid–up capital.
• The firm accepts deposits transferred by individuals.
• The size of the average annual turnover exceeds $ 2.5 million.
The features of the firms of this type include the following aspects:
• Shareholders are free to transfer securities.
• To establish an open company, at least seven people are required.
• A company may attract private investment without restriction.
• For tax purposes, lower rates are used.
Documents required for registration of a company in India
To register an enterprise, the applicant must submit to the Registration Bureau the following papers:
• Memorandum or Articles of Association (a notarized copy is sufficient). If the document is translated into English – the translation must also be certified by a notary.
• The address of the main office.
• List of management personnel (managers and secretaries).
• Information regarding Indian residents who are granted decision–making rights regarding the operation of the enterprise (residential address, surnames and names).
• The exact address of the place of business.
• Name of the company.
• Indication of the amount of registered and authorized capital.
• Indication of the main, auxiliary and other objects and objectives of the enterprise.
Lawyers of our company are experts in the field of international financial law, with extensive experience in different countries of the world. We will prepare for you the required documents, provide you with full support and support at all stages of registration and provide full advice on all issues.