FDI Advice - Page 25 of 26 - Foreign Direct Investment

January 4, 2018 by admin

Steps of company registration India

Let discuss in detail about foreign investment and steps of company registration India. We can look scenario of India, the second largest country in the whole world in terms of population has a total population of 1.324 Billion people (according to 2016) and each and every day the number is getting increased. So new private company limited are getting established every now and often. To legalize those companies, to enlist these companies in the record book of the government, registration of the companies is a must.

India offers companies a large built in and dynamic potential market to explore. Establishing business in India is very profitable and demand able no shred of doubt about that. But before that you have to establish your companies’ legal presence by ensuring the registration of your company and enlisting yourself with the proper company.

Before register a company in India, at first you must acquaint yourself with India and its culture. The population of India is considered as asset but most of the time it seems burden for the country. It depends on you. It depends on how do you use them. You have to understand the mentality of these vast population. You must meet their expectation by the goals or visions of your company. Your company must meet their expectations and demands. There are some differences between doing business in India and doing business in some other countries. Companies in the United States, United Kingdom, and Australia mainly conducts their business focused on transactions whereas Indian business still largely depends on the relationship. They prefer trusting people more than just the outcomes. They happen to be friendlier and welcome the new business companies more warmly. So, knowing the choices of people and doing businesses on their likes will increase your business further. But before that you have to legalize your company so that people can have their faith on your company. If it’s an enlisted company, then people will have more trust on your company that they won’t be deceived. That they can expect some quality service or product from you. That will increase the market demand of your company.

In India’s culture, cow is a holy animal. Understanding the public sentiment is very important those who are interested to start new business in India. So, if your business is related to cow or for instant, let’s assume if your business is related to selling beef meat or something like that then you must understand the public sentiment and do your business accordingly. You can’t expect to do business by hurting them believes, by hurting their sacred feelings. You must show proper respect to those feelings mostly from the religious perspective. You must have your own way of conducting this business but not by hurting them. That is what will matter.

India has also their own traditions. Their own rich cultures, their own literature. You will also have to show proper respect to them. You will have to know the history of theirs, the rich culture of theirs if you’re planning on doing long term businesses there. Your product or service must not contain anything that will disrespect them or their feelings about their culture.

Now when you are well acquainted with all these aspects, you can apply to register your company. But there are a few things you should know first.

How to register a company in India as foreigner?

How to register a company in India as foreigner

There is a requirement in the number of board members while registering your company. Minimum number of board members required for a private company is two and the number increases to seven when you enlist it as a public company.

Ministry of Corporate Affairs (MCA) used to do these registrations in black and white a few years back but in recent years, Due to the effect of digitization, you don’t need to do such things meeting person to person. When registering your company you will just have to follow certain processes and if their demand meets and you submit all the required documents and information’s then you will get a legal license to do business in India, the land of opportunities.

Like many other countries such as Bangladesh, Srilanka, Thailand, Singapore you don’t need to show any minimum requirement of investment capital. It simply depends on you, your type of business, your requirements, and your wishes. There is no hard and fast rules in India regarding the minimum amount of capital needed for investment .

“MINISTRY OF CORPORATE AFFAIRS” or MCA are the authorized body in India to legalize the company registration. They keep a record of all the registered companies, their information’s and do legalize them. Other than MCA, no organization can give you the certification of register a company in India. And without this certification, without your name being enlisted, your company and doing business in India is illegal by law.

Economic zone

“Special Economic Zones Act, 2005 was passed on 23rd June, 2005.After the passage of this act India allowed the special economic zones. Under this act, India gives permission for the establishment, development and management of SEZs for the promotion of exports and related activities.

The main advantage of a tax free zone is the duty free importation of required machineries, production lines and related equipment’s. It inspires more company to do business in India because of its tax free zones.

Income Tax

The tax rate for corporate affairs differ on the total asset turnover amount. It also differs between the Indian companies or for foreign companies. If the asset turnover amount is less than 50 crores then the tax rate is 25% for Indian companies and 40% for foreign companies. And if the asset turnover amount is more than 50 crores then for Indian company the tax rate is 30% and for foreign company the tax rate remains same at 40%.

Now if we compare the essentials steps of company registration India and other developing and developed countries then we can see that, In Singapore, a minimum of one resident director is a must and there is no number of additional local or foreign director is fixed. There is no maximum number. Whereas in India the minimum number is 2 and the maximum is 50.

The requirements regarding number of shareholders in Singapore is just as same as India which means minimum 1 shareholder and maximum of 50 shareholders.

In Singapore the taxation rate is 9% for the initials and settles at a rate of 17% flat afterwards whereas in India the rate is 25-30%.

Malaysia, Thailand, Singapore, Bangladesh etc. Countries don’t need any minimum amount of investment capital, just as like as India. For your easy understanding we can add a question answer sessions based on the frequently asked questions. These are –

What is the minimum number of directors required to register a company in India?

Ans: 2

What is the taxation rate in India?

Ans: 20-24%

What is the minimum investment capital for company registration India?

Ans: No definite minimum or maximum capital.

Before start a business its need to follow the steps of company registration India as below –

1) Decide your business structure: At first you have to decide the structure of your business. It may vary from company to company.

2) Selection of names: choosing a good, smart and eye-catching name helps. It’s a good idea to have at least four potential names for your company in case some other entity registered under the name with the Roc. These four name options will help you if the name you chose is already in use by any other company. You can customize the name according to the choice and need to attract more clients of Indian market.

3) Deciding of company office address: Your Company must have a working address or an official address. It may be your home address that does not create any difference. But that email address must be in regular use.

4) Apply for DIN (Director Identification Number): DIN is a special unique number assigned by the ministry of corporate affairs, different for each company identifies the current or intended director of your company. You can apply for DIN via online. You will just have to give them some information’s regarding the proof of address, educational qualifications, passport and current occupation and this is how to register a company in India as foreigner.

5) Register online for a DSC (Digital Signature Certificate): Digital signature Certificate can be used to prove the legality of your company. It can also be used to prove your identity or to access information about your company or to know about your company digitally. For this you have to apply for Digital Signature Certificate ministry of corporate affairs via online.

So, your company is ready to go. Now you just must keep yourself on track. All the necessary steps have been taken. All the documentation has been done. You will just have to check the website now from time to time to know that when your company is enlisted as a legal business entity in India. You don’t have to take any hassles for that. By the grace of digitization, all the necessary works will be done by MCA via online.

Steps of company registration India are very much easy but be followed FDI guide line. You just have to collect all the necessary documents and fill up the online forms properly. Ministry Of Corporate Affairs will do the rest of the tasks. So, just jump into the land of opportunities. Jump in the ocean of hopes and make your dreams real just by taking the first step and after starting up your own company follow these necessary certain steps and enlist your company as legal and follow the company registration steps to register your company.

December 30, 2017 by admin

Company registration Bangladesh

company registration Bangladesh

Steps and law of limited company registration Bangladesh will be discussed after brief of Bangladesh economy. Due to geographical location, cheap labor and other favorable conditions Bangladesh is a golden place to do business. It has a population over 16 crores. A lot of companies are doing their business based on them. Like other south Asian countries, Bangladesh is also a country where relationship with the company matters more than the transactions in terms of selecting a company. Bangladesh is a rapidly growing country. Both in terms of population and in terms of economy. Not very ago from now, Bangladesh was an underdeveloped country and now it is a developing country and because of digitization and the projects that Bangladesh government has undertaken like “SDG” sustainable development goal, Digital Bangladesh etc. it is very much likely that if it goes this way, soon Bangladesh will stand in the line of the developed countries. Then the markets will be more lucrative. So, you can start right away now. But to do business in Bangladesh, to start up your own company at first you must legalize them. And what is the way to legalize them? – The only way to legalize your company is that you must apply for the registration and you will have to register your company.

Register is a public authority responsible for managing corresponding registry. Companies registry can be managed by courts such as Germany, Austria or government offices like United Kingdom, Ukraine, Bangladesh, India etc. Each country has its own features about company register, contents, purpose, public availability. At first let us know what a company register is –

A company register is a register of organizations in the jurisdiction they operate under. Now why would you register your company? Let me explain why –

Having a registered company name makes a difference when you approach clients and partners. To be more particular, it tells your customers that you are not a fly-by-night operator and you are here for the long-term business. You become more trustworthy to them. They will believe you. Consequently what this does is that it helps you convert customers more easily and efficiently than when running the business as an individual. “COMPANIES ACT,1994” states that, ‘any person (local or foreign) above the age 18, can register a company in Bangladesh. But to run your company you must understand the demands and meet them. Before limited company registration Bangladesh there are some key facts that you need to know –

Company name must be approved before incorporation of the company in Bangladesh. The Registrar of joint stock companies and firms (RJSC) is the sole authority which facilitates formation of companies and keeps track of all ownership related issues as prescribed by the laws in Bangladesh.

There is a requirement in the number of directors required in limited company registration Bangladesh. At least two is the number of director to register your company. At least 2 board members are required for your company registration in case of a private company limited and it increases to seven in case of a public company. Previously you had to do this application for registration process in black and white. But due to the digitization, now you can apply and finish all these tasks sitting on your home via online.

There is no limit on capital repatriation, it promotes growth for global firms because there is flexibility. There are no hard and fast rules regarding the investment capital, it depends solely on you, your type of business.

Income Tax

In a tax-free zone 100% foreign ownership can be implied. The corporate tax rate in Bangladesh at 25 percent and foreign ownership company tax is 35 percent at present. From 1997 to 2016 the average tax rate of Bangladesh was 30.88 percent. The highest tax rate was 40 percent in 1998 and the lowest tax rate was 25 percent in 2010. So, tax rate in Bangladesh is not a fixed number. It is dynamic in Bangladesh.

Steps of company formation Bangladesh

As a foreigner if you want to set up business in Bangladesh then there are some important key facts that you need to know:

At first steps of company formation Bangladesh is must select and clear the name of your company from the Registrar of Joint stock companies and firms (RJSC) and then you must open a bank account in the name of the company that you selected and cleared beforehand. Then you must bring in the initial paid up capital. This is a must for the foreigners to register your company in Bangladesh. All tasks and formalities of private limited company registration Bangladesh cannot be done without you having to visit Bangladesh. But in only one step, where opening the bank account in the registrar of joint stock company, it may need your presence. It also depends upon the bank you choose. If you choose an international bank which do business in Bangladesh, then you don’t need to come for that also. In Bangladesh there is no fixed rule that one or some of your directors must be local or something like that. So, all the directors and shareholders of your company can be foreigners. If you don’t want to relocate your company to Bangladesh, then there is no requirement for you to have any special Bangladesh Visa you don’t even need that. So, you can see the rules are very much friendly and flexible for the foreigners to do business in Bangladesh. It’s like Bangladesh is inviting them warmly to do business here in Bangladesh. If any Bangladeshi lives in the foreign countries, will be able to run their business and this will not be considered as a problem. Besides, the foreign people also can register their company in Bangladesh and they can visit any time in Bangladesh for the business purpose. But if you want to move to Bangladesh, then you are going to need a work permit. The business process steps can be named as follows –

Registering a private limited company
Registration of branch office by BOI, BEPZA.
Registration of project office by BOI
Franchise agreement.

Now you are ready to register your company. For registering your company, you are to follow certain necessary steps. These are described below –

Name Clearance: Obviously you need to give your company a name. The name must not be common to any other company registered. You must get the name clearance at first and for this you must apply in their website following the rules given in the website. Then you will have to apply for name clearance and upon receiving a bank payment slip, 600 taka needs to be deposited to the designated bank. After completing all the above process, the applicant will get the clearance through the account in RJSC.
Bank account opening and bringing up the paid capital (only for foreign shareholdings): Next you will have to open a bank account in the proposed company name with any scheduled bank in Bangladesh. You have to do just normal necessary tasks to open that bank account in your designated bank. The permission of sending remit is allowed in Bangladesh. When the applicant will complete all the processing of opening account, he or she will have been able to remit money to the account of foreign shareholders that are outside from Bangladesh. RJSC will need an encashment certificate that means you are okay from the bankside. So, the bank will issue you an encashment certificate that RJSC will need to register your company.
Submit all the documents: The last steps of company registration Bangladesh are to submit all the required information’s and documents in the RJSCs website. After you finish all the processes, you will receive a bank payment slip for paying the registration fees along with stamp duty. When you made your payment in the bank, your part is done. The rest of the task will be done by the Registrar of Joint stock companies and firms. When all the above-mentioned process will be finished, now he or she will wait for the confirmation from RJSC because of the checking of the documents and other stuffs. After that the applicant will get

*Registration certificate

*MOA and AOA

*Form xii

These documents will be emailed to your account that is linked with the RJSC account. That’s why while giving your email address to the RJSC website must make sure that the mail address is official and it’s in use.

There are some barriers for only some selected nationalities for doing business in Bangladesh. In the rare case, it is seen that if the directors or shareholders are from outside, the total registration process would be got delayed because of the security and confirming issues properly. And in those cases, The RJSC will ask for some additional information’s and if you provide them correctly and if it doesn’t go against the policy then there is no problem you will get the registration certificate.

After the registration is done, there are some post steps of company formation Bangladesh formalities that you are to follow. These are –

#Share certificates for each of the shareholders.

#Register for shareholders, shares, directors etc. That means forming of your company.

#Company seal for the company.

#A rubber stamp for the company.

So, you can see the procedures are very much easy to register your company in Bangladesh. And now in the era of digitalization, you don’t need to go person to person. You can perform all the steps sitting at home. So, it is as simple as that to be an entrepreneur in Bangladesh. You just have to start up your own company, follow the necessary steps to apply for registration of your company. After a few days you will get your registration Certificate and you are free to conduct your business in Bangladesh. So, just indulge yourself, be a leader, be an entrepreneur, do your own business. Show a new path to the young generations. And register your own company by following these easy steps.

Key notes:

Company registration by RJSC
Work permit or visa is issued by BOI, BEPZA
Income tax certificate or submission authority is NBR
Recommended banks are local banks locating Gulshan area, Dhaka
VAT is issued by local VAT office
Trade license is issued by City Corporation or Union Porishad
Expected required time of company registration Bangladesh for foreigner is: 10 days to 3 months, depend on nature of business and ministry approval
Expected total Cost: Taka 130,000 to Taka 400,000, provided that in case of factory setup long time and many other additional permissions are required.