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?
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.
“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.
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?
- What is the taxation rate in India?
- 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.