The minimum number of shareholders needed to incorporate a Private Limited Company in India is two. Companies or individuals from outside the country can be shareholders.
At least two directors are required, of which one must be an Indian citizen. In this case, a foreign national that is an Indian resident is eligible since the requirement is a resident of India (not an Indian national). A resident of India is anyone who has lived in India for at least 182 days in the past year.
There should be no barriers to foreign investment in that industry.
It is time to open a bank account after the company has been established. RBI reports foreign investments into India, which is its responsibility.
Private Limited Company Registration Documents:
We need the holding company’s documents when registering a wholly-owned subsidiary
- Documents for foreign companies:
- An official copy of the foreign company’s registration certificate
- The foreign company’s articles and memorandum
- In India, the foreign company is authorized to invest by a board resolution
- The above documents must be self-attested, notarized, and endorsed by an apostle.
- Obtaining a passport
- Charges on utility bills
- A driving license
- Director passport-size photographs (4 each)
- Documents need to be self-attested, signed by a public notary and endorsed by an apostle.
- Indian residents must have a Pan copy
- Valid ID – Driver’s license, passport, voter’s pass
- Address Proof – Bank Statements or Telephone Bills
- Registered Office documents should be self-attested by the Bank Manager/Gazetted Officer with their signature.
- The address proof must show the full address of the business (a utility bill or water bill showing the full address).
- Owner of office property issues letter of no objection
We are expecting it to take approximately 20-25 working days to complete the registration process.
Indian Reserve Bank FDI Reports:
If a foreign company or individual invests in India, either setting up a business or investing in an existing business, FDI reporting to the Foreign Exchange Management Department or the RBI is required.
In order to invest in an Indian company, the foreign company or foreign national must transfer funds in foreign currency to a bank account in India. Your bank transfer needs to be designated as “investment” or “equity investment”.
In the event funds reach an Indian bank, it will issue a Foreign Inward Remittance Certificate (FIRC). Through which we can file an FC-GPR with RBI.
Advance reporting is required within 30 days of receiving funds. An FC-GPR filing must be filed within 60 days of the receipt of funds.
Licensing after incorporation:
The company must obtain a number of licenses once it is registered, depending on its nature and size. In Bangalore, Karnataka, companies must obtain the following licenses in order to register
1) Karnataka Shops and Commercial Establishments – All registered businesses must obtain this license.
2) Enrolment in professional tax – Every registered company must obtain this license.
(3) Employee Professional Taxes – (required when a salary is over Rs 15,000 per month to employees).
4) Import Export License – (Required for imports and exports)
GST registration – (Required if the company exports goods or services, or if the turnover is more than Rs 20 lakhs)