Overseas: India

Guide For Overseas Corporate Services In INDIA

ACHI BIZ is now associated with a leading law firm at Delhi to cater the Corporate, Business, Reports, Taxation, Litigation, Intellectual Properties, etc services in India.
Our Associate has been in the legal profession for many years and well reputed law firm in India.
The corporate services are rendered from Incorporation of Companies till the de-registration along with compliance and any other legal services as required.
Those who are aspiring to set-up businesses in booming India, please contact us immediately to fulfill your ambition of becoming a shining entrepreneur or businessman in India.
This Guide will be helpful to understand the basic requirements when any of corporate services is required in India.

About Republic of India

India, officially the Republic of India, is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Its capital city, New Delhi, is located in the north central part of the country.
India is most famous for its culture where we have a myriad of cultures from all around the world coming together and falling into one place. India is famous for its unity in diversity pledge. India is famous for its spices and our cuisine is world famous, no doubt in that.
In reality, there is not any full form of India. In ancient times, India was known as Arayavart. Other names are, ‘Bharat’ and ‘Hindustan’ in Hindi. The name India is derived from the word Indus which itself derived from the old Persian word Hindu, from Sanskrit Sindhu. At the time of independence then, the names Bharat, India, Al-Hind and Hindustan coexisted to designate the Indian subcontinent.
According to consensus in modern genetics, anatomically modern humans first arrived on the Indian subcontinent from Africa between 73,000 and 55,000 years ago. However, the earliest known human remains in South Asia date to 30,000 years ago.
On June 15, 1947, the British House of Commons passed the Indian Independence Act, or Mountbatten Plan, which divided India into two dominions, India and Pakistan. It called for each dominion to be granted its independence by August 15 of that year (15-August-1947).
George VI continued to hold the title King of India for two years during the short Governor-Generalships of Lord Mountbatten and of C. Rajagopalachari until India became a republic on 26 January 1950. George VI remained as King of the United Kingdom and King of Pakistan until his death in 1952.
Portuguese explorer Vasco da Gama discovered a sea route to India in 1497-1498. Actually, an unnamed Indian navigator he hired in Kenya directed the journey from the east coast of Africa to what is now Kozhikode, India.
The Mughal Empire ruled hundreds of millions of people that was two-thirds Hindu, and the earlier spiritual teachings of the Vedic tradition remained influential in Indian values and philosophy. India became united under one rule and had very prosperous cultural and political years during the Mughal rule. There were many Muslim and Hindu kingdoms split all throughout India until the founders of the Mughal Empire came.
India is home to at least nine recognized religions. The major religions practiced in India are Hinduism, Islam, Christianity, Sikhism, Buddhism and Jainism. Zoroastrianism, Judaism and the Baha’i Faith are also practiced in India. Indian religions are a major form of world religions along with Abrahamic ones.
India country profile. India is the world’s largest democracy and, according to UN estimates, its population is expected to overtake China’s in 2028 to become the world’s most populous nation. As a rising economic powerhouse and nuclear-armed state, India has emerged as an important regional power.
The Indian rupee sign (sign: ₹; code: INR) is the currency symbol for the Indian rupee, the official currency of India. Designed by Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its selection through an “open” competition among Indian residents.
India is home to an extraordinary variety of climatic regions, ranging from tropical in the south to temperate and alpine in the Himalayan north, where elevated regions receive sustained winter snowfall. The nation’s climate is strongly influenced by the Himalayas and the Thar Desert.
India has been ranked the cheapest country to live in the world, according to new data. The largest nation on the subcontinent has won the top spot for cheapest living, beating its neighbours Pakistan and Nepal, a new survey of world prices has suggested.
India is most famous for its culture where we have a myriad of cultures from all around the world coming together and falling into one place. India is famous for its unity in diversity pledge.

Infrastructure

Simply speaking, “Infrastructure means those basic facilities and services which facilitates different economic activities and thereby help in economic development of the country, Education, Health, Transport and Communication, banking and insurance, irrigation and power and science and technology etc. Infrastructure is a major sector that propels overall development of the Indian economy.
Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development. In 2018, India ranked 44th out of 167 countries in World Bank’s Logistics Performance Index (LPI) 2018.

Economy

India is a leading producer of lemons, oil seeds, bananas, mangoes and papayas, and the second-largest producer of wheat, rice, sugar cane, many vegetables, tea, cotton, and silkworms among others.
India is one of the most powerful countries in the world considering current economy, military, political and soft power. It is an economic powerhouse in the world. Indian military secured 4th in the world ranking with the GFP Power Index rating of 0.1661(0.0000 being perfect).
What exactly do you mean by “main source of Indian economy”? It is the service sector which is the main source of national income. Therefore, service sector contribute more than 50% of the GDP. But it is the agricultural sector which employs more than 50% of the population.

Type of Law

India maintains a hybrid legal system with a mixture of civil, common law and customary, Islamic ethics, or religious law within the legal framework inherited from the colonial era and various legislation first introduced by the British are still in effect in modified forms today.

Central Bank

In India the central bank (common noun) is the Reserve Bank of India which has listed which are the nationalized banks in its official website. The term central bank is used to describe the institution that performs the job of a monetary authority i.e. regulating money supply, issuing currency notes and setting interest rates.
Post-independence, the Indian government adopted a planned economic development for the betterment of the country. The government of India under the leadership of the then Prime Minister Indira Gandhi issued an ordinance to nationalize 14 largest commercial banks in India with effect from July 19, 1969, under the regulatory authority of the Reserve Bank of India for the major reasons of Social Welfare, Developing Banking Habits, Expansion of Banking Sector, Controlling Private Monopolies, Reducing Regional Imbalance and Prioritizing Lending Sectors. Currently, the number of nationalised commercial banks are keep growing along with its economy.
RBI: It regulates and controls the monetary system of the country.
SEBI: Securities and Exchange Board of India (SEBI) is a statutory body that controls the Indian capital market.

Anti-Money Laundering: ​FATF Status

India is not currently on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in India was undertaken by the Financial Action Task Force (FATF) in 2010. According to that Evaluation, India was deemed Compliant for 4 and Largely Compliant for 25 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 out of the 6 Core Recommendations.

Corporate Entities

In India one can choose from five different types of legal entities to conduct business. There are various forms of business entities in India:

• Private Ltd Company
• Public Ltd Company
• Unlimited Company
• Partnership
• Limited Liability Partnership (LLP)
• Sole proprietorship
• Joint Hindu Family business
• Cooperatives
• Liaison Office
• Project Office
• Branch Office
• Subsidiary Company

Type of Entity	Features
Private Ltd Company	It restricts the right of the shareholders to transfer their shares. It has a minimum of 2 and maximum of 50 members. It does not invite public to subscribe to its share capital It must have a minimum paid up capital of INR100,000 or such a higher amount which may be prescribed from time to time.
Public Ltd Company	It allows the shareholders to transfer their shares. It has a minimum of 7 members, and for maximum there is no limit. It invites the general public to subscribe to its shares It must have a minimum paid up capital of INR500,000 or such a higher amount as may be prescribed from time to time.
Unlimited Company	Unlimited Company is a form of business organization under which the liability of all its members is unlimited. The personal assets of the members can be used to settle the debts. It can at any time re-register as a limited company under section 32 of the Companies Act.
Partnership	Partnership is “the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all”. It is governed by the Indian Partnership Act 1932.
Limited Liability Partnership	Under LLP (Limited Liability Partnership) the liability of at least one member is unlimited whereas rest all the other members have limited liability, limited to the extent of their contribution in the LLP. Unlike general partnership this kind of partnership does not get terminated by the death or insolvency of the limited partners. It is governed by Limited Liability Partnership Act of 2008.
Sole proprietorship	Sole proprietorship is a form of business entity where a single individual handles the entire business organization. He is the sole recipient of all profits and bearer of all loses. There is no separate law that governs sole proprietorship.
Joint Hindu Family	Joint Hindu Family is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law.
Co-operatives	Co-operatives is a form of voluntary organization, wherein the members work together for the promotion of the interests of its members. There is no restriction to the entry or exit of any member. It is governed by Cooperative Societies Act 1912.
Liaison Office	Liaison Office is a kind of representative office which is set up to understand the business and investment environment. It is barred from taking up any commercial / industrial / trading activity and its role is limited to aggregation of information and promotion of exports/imports. It has to maintain itself out of inward remittances received from the parent company.
Project Office	Foreign companies can set up temporary project offices in India for carrying out activities related to that specific project.
Branch Office	Foreign companies which are into manufacturing and trading activities abroad are permitted to set up branch offices in India for various purposes like rendering of professional and consultancy services, export/import of goods etc. Branch offices are not permitted to carry out manufacturing activities on their own. RBI is the statutory body that grants permission to foreign companies for setting up branch offices in India.
Subsidiary Company	In India the sectors where 100% foreign direct investment is permitted, there foreign companies can set up wholly owned subsidiary. The wholly owned subsidiary can be either of the following business entities: Private Ltd Company Public Ltd Company Unlimited Company Sole Proprietorship

 

Taxation

A resident company is taxed on its worldwide income. A non-resident company is taxed only on income that is received in India, or that accrues or arises, or is deemed to accrue or arise, in India. There are no local, state, or provincial taxes on income in India at present.

Registration of Companies

Office of Registrar of Companies

The responsibility of the Registrar of Companies is to register the companies for their respective states and Union Territories and ensuring that the companies abide to the legal requirements of the Companies Act.
Ministry of Corporate Affairs regulates the Companies Act 1956 and other following allied acts:

• The Partnership Act 1932
• The Chartered Accountants Act 1949
• Companies Fund Act 1951
• The Companies Act 1956
• The Chartered Secretaries Act 1980
• The Monopolies and Restrictive Trade Practices Act in 1969
• The Companies Amendment Act 2006

 

Services rendered in India currently by ACHI BIZ

Services	Description of Services
INCORPORATION OF AN INDIAN LIMITED LIABILITY COMPANY (UNLISTED) / LIMITED LIABILITY PARTNERSHIP (LLP) / TRUST ETC.	Checking of company’s name availability with the Registrar (up to 50 name checks per Client); Drafting, notarizing and filing the company’s Memorandum and Articles of Association along with the requisite e-forms with the concerned authorities; Drafting, notarizing and filing proxies and requested declarations; Registration of the company with the Registrar of Companies; • Collection of the company’s Certificate of Incorporation. Obtaining Permanent Account Number (PAN) of the company, Director Identification Number (DIN) and Digital Signature Certificate (DSC) of all the directors. Issue and allotment of Equity/Preference shares to the directors and payment of stamp duty on the same (only with regard to the initial capital)
SECRETARIAL SERVICES	Appointment / Removal of Director / Nominee Director / Auditor as per the provisions of Companies Act, 2013 (India): Conducting of Board / Shareholder(s) meeting of the company as per the requisite provisions of the Companies Act, 2013 during the year. Preparation / Drafting of Agendas, Minutes and requisite resolutions for the Board/shareholder meeting of the Company. Advise on forming various committees as per the provisions of Companies Act, 2013. Maintenance of Secretarial records and Statutory registers as per the provisions of Companies Act, 2013. Preparation of Board report / CSR report etc. Further issue or reduction of Share capital. Annual filing with the concerned authority along with other related compliance.
NOMINEE DIRECTOR	Nominee director (active or passive): Official representation and administrative / legal management of the company (convening general meetings, presiding and signing board report / minutes, contractual documents etc).
CORPORATE BANK ACCOUNT OPENING	Contacting up to ten (10) banks to open one (1) corporate bank account or capital deposit account (if applicable) with the bank preferred by the Client; Collection of the bank statement certifying the deposit for the initial paid up capital (if applicable); Collection of bank mail, cheque book, ATM card and internet banking PIN and token; Courier of complete bank account and internet banking package to the client’s address.
REGISTRATION WITH INCOME TAX, GST DEPARTMENT, PAYMENT OF TAXES AND FILING OF RETURNS	Registration of the company for corporate income tax, GST (if applicable); Filing of Income tax returns (yearly) Payment/Filing of GST returns (Monthly/quarterly/Annually)
AUDITING SERVICES	Statutory Audit (yearly), mandatory Tax Audit (yearly), only if applicable Transfer pricing filing/audit (yearly), only if applicable
ACCOUNTING SERVICES	Book keeping services
DOMICILIATION SERVICES	Provision of a registered address for legal domiciliation of the company and to receive courier addressed to the business; Provision of a virtual office service for the mail, phone call and fax forward.
NOTARISATION / ATTESTATION AND APOSTILLE SERVICES	Individual documents such as Marriage certificate, birth certificate, death certificate, medical certificate, education certificate, salary certificate etc. Corporate documents such as Certificate of Incorporation (COI), Memorandum and Articles of Association and other financial statements.
FOREIGN EXCHANGE MANAGEMENT ACT (FEMA) SERVICES	Preparation and Filing of various forms with regard to Foreign direct Investment (FDI) and foreign remittances received by the company in India, with the Reserve bank of India (RBI). Advisory services with regard to preparation of road map for Indian/foreign companies looking to invest in or outside India. Advisory services with regard to External Commercial Borrowings (ECB) for companies registered in India. Advisory services on issue of FCCB and Overseas Direct Investment (ODI) for companies registered in India.
CERTIFIED DOCUMENTS SERVICE	Obtaining Certificate of Good Standing for companies from Ministry of Corporate Affairs (MCA), Govt. of India. Registry Searches/Document retrieval services with regard to companies registered in India. Mortgages/ Charge/ Pending litigation Status search and providing up to date and accurate details of various companies registered in India. Credit report of the company registered in India in detailed format.
DRAFTING SERVICES	Drafting of various contracts and Agreements with regard to prevailing laws of the state.
REPORTS	Preparation of Due Diligence Reports for companies in India and abroad. Preparation of Title Search Report (TSR).
LITIGATION SERVICES	Conducting and handling cases in Tribunals / High Courts and Supreme Court of India. Handling dispute resolution, Arbitration proceedings in India. Handling corporate cases, insolvency resolution proceedings, Anti-trust law cases etc in India. Obtaining Succession Certificate/ Probate of Will/ Letter of Administrations etc. Handling Direct/ Indirect tax related cases across India.
INTELLECTUAL PROPERTY RIGHTS (IPR) SERVICES	Drafting/Filing and registration of Trademark, Copyright, Geographical Indication (GI) and Patent in India. Removal of objections with regard to the filed application from appropriate tribunal/department. Litigation services with regard to the same.

 

Documents required (for Incorporation in India):
1	Apostilled copies of Identity proofs, residential proofs (copies of passport/driving license) of foreign directors,
2	Two passport size photographs of the prospective foreign directors.
Note:
1	Total time period for incorporating the company would be 8-12 working days subject to approval given by the concerned authorities.
2	Minimum requirement of Authorised capital is INR 1 lakh (Indian Rupees One Hundred Thousand) to start a company in India.

 

Guidelines:
1	Effective Income tax rate from 01-Oct-2019 onwards on domestic companies would be 25.17% and on manufacturing companies it would be 17.01%.
2	GST and Custom duty would be applicable subject to the nature of item of business (raw material, metal, type etc. various things are to be considered, as list for the same is quite extensive, so will let you know the exact rate and duty as and when things evolve further).
3	Further, our Associate is operating as a full- fledged law firm/consultancy firm at New Delhi from quite a long period, so you will be getting full support from our Associate side on legal, taxation, accountancy and secretarial matters in a cost-efficient and effective timely manner.

 

TERMS AND CONDITIONS: Source of Information, Guidelines, Compliance, Laws, Rules & Regulations is from the relevant authorities of respective jurisdictions. The Acts in respective jurisdictions are subject to change by the regulatory authorities. We have published the guidelines with most updates from our Associate Firms. The Customers would be notified with the updated Acts with oncoming changes if applicable when the Offshore services are rendered by us.

 

Please refer to our SERVICES for more information or CONTACT us if you wish to avail these or many other services.