India is often preferred over other Countries due to availability of high skilled workforce at competitive costs by Information Technology (IT) Companies all across the world. One such Company of US approached us to setup their foreign Company, assistance in opening of bank account & compliance support in ongoing operations.
VDC helped them setting up their subsidiary Company in India by complying with all the requirement of Companies Act, 2013 & FEMA Act, 1999.
Further, after incorporating the Company, client required assistance in opening of Bank account.
Bank account is required to be opened so that Capital amount can be received within 180 days of incorporating the Company as Form INC 20 A has to be filed within the above time limit. Further, operations of the Company has been commenced. Further, under FEMA Act, 1999, Form FC-GPR has to be filed with Reserve Bank of India (RBI) stating that foreign investment of holding Company has been received in the Bank account.
Due to the above reasons, it becomes really important to open the bank account within the above mentioned period to comply with these laws.
Challenges
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Foreign Companies usually doesn’t have idea on how to initiate the opening of bank account.
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Further, they are not aware about the KYC norms applicable on Indian Companies while opening the bank account in India.
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They usually don’t have clarity on payroll structure & tax deduction on salaries of employees.
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They are not aware of the regular compliances that needs to be done by these Companies in India.
Our Approach
🔹 Assistance in opening of Bank account
VDC helps the clients in opening Company’s bank account. We connected the client with the authorized banks of India.
🔹 Complying with KYC requirements
We provide them with all the requirements that needs to be fulfilled like providing the passport copy of foreign directors, providing the KYC documents of foreign holding Company etc.
🔹 Setting up of payroll Structure in India
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We helped the client in obtaining Tax Deduction Account Number (TAN) for deduction of Tax applicable on employees while making payments of salaries.
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Further, EPF & ESI Compliance has also been taken care applicable on employees.
🔹 Complying with applicable laws
This helped them in smooth functioning of business & operations in India without taking care of regular compliances applicable on Company.
Outcome
1️⃣ Client successfully opened bank account within 20 days of its incorporation after providing all the KYC documentation of the Company, directors & shareholders.
2️⃣ Post opening of the bank account, Capital amounts was received from the foreign Company within the prescribed time limit & Form INC-20A & Form FCGPR was successfully filed once Capital was received in Bank.
3️⃣ Client has also laid successfully laid down payroll structure with the help of VDC.
4️⃣ Now the Company is able to run its business & operations smoothly in India.
Conclusion
At VDC, we help clients not only in setting up of Company in India but also assist them in advisory & compliances post incorporation like assistance in Opening bank account & regular compliances so that foreign Companies can expand their business smoothly.
If you are looking for assistance in expanding your business in India or post incorporation advisory & compliances, you can reach out to us at vidhu@vidhuduggalandco.com or +91-9268747482 for expert guidance.
Our Expert will connect with you to provide expert guidance.
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