Doing Business in India An Overview of Legal Entity Alternatives In India
<ul><li>This presentation is in five parts as per the serial number and order given below :  </li></ul><ul><li>Foreign Dir...
1.  Foreign Direct Investment and RBI Approvals Two types of permission  based on Industry and Product Automatic Route Wit...
2. Entity Options Available Promoter Company  Incorporated  Outside India Establish a Foreign Company In India Incorporate...
2.1 Foreign Company In India Establish a Foreign Company In India Project Office Liaison Office Branch Office Requires app...
2.2 Indian Company as Subsidiary  <ul><li>Documents Required </li></ul><ul><li>Proof of Identity of All directors i.e Pass...
3. Brief Procedure for Entity Formulation We have Following two options Branch Office Company Formation 1. Operating histo...
4. Various Business Registration Required <ul><li>Following are the various types of business registration that are requir...
5. Time schedule for various activities 2 – 3 Weeks Bank Account Opening  Application to use “TM” 2-3 week  Trade Mark Reg...
Facilitating India Entry <ul><li>About Us </li></ul><ul><li>A registered Company based in Mumbai </li></ul><ul><li>Providi...
Thank You <ul><li>Disclaimer </li></ul><ul><li>This presentation is based on the information from official publications of...
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Sr Presentation On Business Startup India

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The presentation provides you the various alternative to setup us your business in India other relevant details

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Sr Presentation On Business Startup India

  1. 1. Doing Business in India An Overview of Legal Entity Alternatives In India
  2. 2. <ul><li>This presentation is in five parts as per the serial number and order given below : </li></ul><ul><li>Foreign Direct Investment and RBI Approvals </li></ul><ul><li>Entity Options Available </li></ul><ul><li>Brief Procedure for Entity Formulation </li></ul><ul><li>Various Business Registration Required </li></ul><ul><li>Time Schedule </li></ul>
  3. 3. 1. Foreign Direct Investment and RBI Approvals Two types of permission based on Industry and Product Automatic Route With Prior FIPB Approval <ul><li>Investment subject to limit i.e </li></ul><ul><li>Either 51% or 100% </li></ul><ul><li>No prior Approval is required </li></ul><ul><li>* RBI should be intimated with </li></ul><ul><li>required documents within 30 days </li></ul><ul><li>After receipt of funds </li></ul><ul><li>No Investment in restricted sector </li></ul><ul><li>Allowed eg atomic, Lottery etc </li></ul><ul><li>* Intimation can be made after company </li></ul><ul><li>Formation. </li></ul>* Investment subject to limit i.e Either 51% or 100% * Prior Approval is required * RBI should be intimated with required documents before bringing funds * No Investment in restricted sector Allowed eg atomic, Lottery etc * Approval should be after company Formation.
  4. 4. 2. Entity Options Available Promoter Company Incorporated Outside India Establish a Foreign Company In India Incorporate an Indian Company Project Office Liaison Office Branch Office Private Limited Company Public Limited Company
  5. 5. 2.1 Foreign Company In India Establish a Foreign Company In India Project Office Liaison Office Branch Office Requires approval from RBI And Registration with Registrar of Companies Requires approval from RBI And Registration with Registrar of Companies Requires approval from RBI And Registration with Registrar of Companies <ul><li>Activities Permitted </li></ul><ul><li>Export/Import of Goods </li></ul><ul><li>Professional/Consultancy </li></ul><ul><li>service </li></ul><ul><li>Research </li></ul><ul><li>Technical / Financial </li></ul><ul><li>Collaboration </li></ul><ul><li>Buying/Selling Agent </li></ul><ul><li>IT/Software Development </li></ul><ul><li>Technical Support </li></ul><ul><li>Foreign Airline/Shipping </li></ul><ul><li>Manufacturing in SEZ </li></ul><ul><li>Taxed at rates applicable </li></ul><ul><li>to foreign companies </li></ul><ul><li>Viz. 42.23% currently </li></ul><ul><li>Activities Permitted </li></ul><ul><li>Represent Foreign parent Co. </li></ul><ul><li>Promote Export/Import </li></ul><ul><li>Promote Technical/ </li></ul><ul><li>Financial Collaboration </li></ul><ul><li>Communication channel </li></ul><ul><li>between parent company </li></ul><ul><li>And Indian companies </li></ul><ul><li>Spread awareness and </li></ul><ul><li>Explore opportunities </li></ul><ul><li>Not allowed to undertake </li></ul><ul><li>Business activity </li></ul><ul><li>Not allowed to buy </li></ul><ul><li>Immoveable property </li></ul><ul><li>Activities Permitted </li></ul><ul><li>Set-up with RBI </li></ul><ul><li>permission for executing </li></ul><ul><li>Specific projects in India </li></ul><ul><li>Taxed at rates applicable </li></ul><ul><li>To foreign companies </li></ul><ul><li>Viz. 42.23% currently </li></ul>Easy operation & fast closure Unsuitable for expansion & Long term operation Ideal for exploring Opportunities as a pre-cursor to actual operations Limited scope. Effective route For limited purpose of large Project execution
  6. 6. 2.2 Indian Company as Subsidiary <ul><li>Documents Required </li></ul><ul><li>Proof of Identity of All directors i.e Passport/Driving License/ PAN Card/Election ID </li></ul><ul><li>Proof of Residence of All directors i.e Ration Card/Passport/Bank statement </li></ul><ul><li>NOC From foreign company if the name is to be similar to foreign company </li></ul><ul><li>Resolution from company if investment were to come from a foreign company </li></ul><ul><li>In case of foreign directors the documents in 1 & 2 are to be certified by notary or Indian embassy in the origin country </li></ul>Incorporate an Indian Company Private Limited Company Public Limited Company <ul><li>Key Features </li></ul><ul><li>Minimum 2 Directors </li></ul><ul><li>Minimum 2 shareholders </li></ul><ul><li>Minimum Authorised Capital </li></ul><ul><li>Rs.0.1 million (approx.Euro 1800) </li></ul><ul><li>Maximum 50 shareholders </li></ul><ul><li>Cannot offer shares to Public or </li></ul><ul><li>outsiders </li></ul><ul><li>Low disclosure and Compliance </li></ul><ul><li>requirements </li></ul><ul><li>Restrictions on transfer of Shares </li></ul><ul><li>Addition Tax if Funds remitted as Dividend @ 12.5% </li></ul><ul><li>Key Features </li></ul><ul><li>Minimum 3 Directors </li></ul><ul><li>Minimum 7 shareholders </li></ul><ul><li>Minimum Authorised Capital </li></ul><ul><li>Rs.0.5 million (approx.Euro 9100) </li></ul><ul><li>No limit on Maximum shareholders </li></ul><ul><li>Appropriate if company wants to </li></ul><ul><li>Raise equity from investors in India </li></ul><ul><li>Disclosure and Compliance </li></ul><ul><li>Requirements are elaborate </li></ul><ul><li>* Addl Tax if Funds remitted as Dividend @ 12.5% </li></ul>When compared to Branch Office, Set-up costs are higher & exit is complicated. Profits are taxed lower at 33% Recommended when the Foreign promoter has at least a medium term outlook for India or is in partnership with an Indian entity. Recommended for large Companies or In case where the Indian Company has plans To raise equity funding in India outside its Group of promoter individuals and their Families, members and associates.
  7. 7. 3. Brief Procedure for Entity Formulation We have Following two options Branch Office Company Formation 1. Operating history of Company worldwide 2. Proposed Interest and Activities 3. Reasons for opening branch in India 4. Any foreign exchange implication 5. MOA and AOA of Foreign Company 6. Resolution for opening branch office in India 7. Filling the required in form FNC 1 with RBI 1. Taking Digital Signatures of Directors 2. Taking directors Identification Number. 3. Application for Name approvals with ROC. 4. Drafting and preparation of MOA & AOA 5. Franking of the required Documents 6. Filling of all the documents with ROC 7. Correction of documents 8. Taking Certificate of Incorporation 9. For public Ltd company filling additional forms 10. Filling of Statement in lieu of prospectus 11. Taking Certificate of Commencement of business
  8. 8. 4. Various Business Registration Required <ul><li>Following are the various types of business registration that are required to be taken by a business entity operating in India. </li></ul><ul><li>Permanent Account Number </li></ul><ul><li>Tax deduction Number </li></ul><ul><li>CST and VAT Number </li></ul><ul><li>Professional Tax Number </li></ul><ul><li>Services Tax Registration </li></ul><ul><li>Central Excise Registration </li></ul><ul><li>Import Export Code </li></ul><ul><li>Trademark Registration </li></ul><ul><li>Shop and Establishment Registration </li></ul>
  9. 9. 5. Time schedule for various activities 2 – 3 Weeks Bank Account Opening Application to use “TM” 2-3 week Trade Mark Registration 2 – 3 Weeks Taking VAT and CST Registration & Profession Tax 1 – 2 weeks Taking Services Tax Registration 1 – 2 weeks Import Export Code 2 – 3 weeks Shop and Establishment Registration 2 – 3 Weeks Taking Permanent Account Number & Tax deduction Number 8 – 10 weeks or as per the meeting of Foreign Investment Promotion Board Taking FIPB Prior Approval 2 – 3 Weeks Intimation to RBI for Automatic Route 6 – 8 Weeks Formation of Public Company 3 – 5 weeks Formation of Private Company 5 – 7 weeks Setting Branch office Duration Activities
  10. 10. Facilitating India Entry <ul><li>About Us </li></ul><ul><li>A registered Company based in Mumbai </li></ul><ul><li>Providing turnkey services to foreign SMEs for doing business in India </li></ul><ul><li>Geographical focus on business with India. </li></ul><ul><li>Office at three location i.e Mumbai , Pune and Jaipur. </li></ul><ul><li>Associates present at Delhi, Ahemdabad </li></ul><ul><li>Promoted and managed by experienced and qualified professionals with extensive exposure to multiple functions of businesses in India with a total strength of 65 Semi Qualified and Qualified staff </li></ul><ul><li>A comprehensive range of services : </li></ul><ul><ul><li>Business Setup Services </li></ul></ul><ul><ul><li>FDI and RBI Approvals </li></ul></ul><ul><ul><li>Entity Formation and Registration Services </li></ul></ul><ul><ul><li>Business Registration Services </li></ul></ul><ul><ul><li>Accounts Outsourcing Services </li></ul></ul><ul><ul><li>Statutory Compliance services </li></ul></ul><ul><ul><li>Audit Assurance Services </li></ul></ul><ul><ul><li>Services for hiring of India management team recruitment Solutions </li></ul></ul><ul><li>For details please contact </li></ul><ul><ul><li>Rakesh Parik at [email_address] </li></ul></ul><ul><ul><li>Dilip Singh at [email_address] </li></ul></ul><ul><ul><li>S R Corporate Services Private Limited, & MNRD & Associates , Chartered Accountants </li></ul></ul><ul><ul><li>Block 2, Third Floor, Abbas Manzil, Sahar Rd, Chakala , Andheri East, </li></ul></ul><ul><ul><li>Mumbai 400001. India </li></ul></ul><ul><ul><li>Tel: 91.22.40263556/7/8/9 Fax: 91.22.2820 0310 </li></ul></ul><ul><ul><li>www.srcorporateindia.com/ www.indiancompanyonline.com </li></ul></ul><ul><ul><li>www.srcorporateservices.com www.mnrd.in </li></ul></ul><ul><ul><li>www.srcsindia.com </li></ul></ul>
  11. 11. Thank You <ul><li>Disclaimer </li></ul><ul><li>This presentation is based on the information from official publications of the Department of Industrial Policy and Promotion and the Reserve Bank of India. All efforts have been taken to maintain the correctness of the information provided. While efforts are made to keep this information updated, we do not take any guarantee about the accuracy of this information. The purpose of this presentation is to provide a broad level overview of the FDI policy environment and options available for foreign direct investments into India. It is not a substitute for professional and specific advise that readers are strongly recommended to take before forming a firm opinion, taking investment or business decisions regarding investing in India. Market Entry Solutions will not be responsible for any consequences arising from decisions taken based solely on this presentation. </li></ul>

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