India is one of the world's fastest-growing economies, offering lucrative opportunities for foreign businesses. At Vidhu Duggal & Company, we specialize in assisting international companies, investors, and entrepreneurs in setting up their businesses in India while ensuring full compliance with tax and regulatory frameworks.
Setting up a foreign company in India involves several steps and requires compliance with local laws and regulations. Here’s a comprehensive guide:
India, with its vibrant economy, skilled workforce, and business-friendly policies, is one of the most promising destinations for entrepreneurs and corporations alike. Whether you are a startup, SME, or multinational company, we provide comprehensive solutions to help you set up and grow your business in India with ease
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Foreign companies can set up operations in India in the following forms:
Wholly Owned Subsidiary: A private limited company wholly owned by the foreign entity.
Joint Venture (JV): A partnership with an Indian company.
Branch Office (BO): For export/import, consultancy, or technical support.
Liaison Office (LO): For representing the parent company, exploring markets, or promoting collaboration.
Project Office (PO): For executing specific projects in India.
Limited Liability Partnership (LLP): Allowed in specific sectors.
Automatic Route: No prior government approval required.
Approval Route: Prior approval from the Indian government is necessary for certain sectors.
Branch Office (BO): For export/import, consultancy, or technical support.
Verify the FDI policy and sector-specific caps/restrictions before proceeding.
Reserve Name: File Form SPICe+ Part A on the Ministry of Corporate Affairs (MCA) portal to reserve a unique company name.
Obtain Digital Signature Certificate (DSC): Required for company directors.
Director Identification Number (DIN): Apply for DIN via SPICe+ Part B.
Draft Memorandum of Association (MoA) and Articles of Association (AoA):
File Incorporation Application (SPICe+ Part B): Submit details about directors, shareholders, and registered office.
Approval from RBI: Submit Form FNC (Foreign National Company) through an Authorized Dealer Bank.
Company Registration: After RBI approval, register the office with the Registrar of Companies (RoC).
Open a bank account in the name of the company for transactions and FDI compliance.
For BO, LO, and PO, a bank account is required to receive funds from the parent company.
Permanent Account Number (PAN):
Mandatory for tax purposes.
Tax Deduction and Collection Account Number (TAN):
For withholding taxes.
Goods and Services Tax (GST) Registration:
If applicable.
Employee Provident Fund (EPF) and ESI Registration:
For companies hiring employees.
Sector-specific licenses if applicable (e.g., food, telecom).
Abide by Indian labor laws if hiring local employees.
Draft employment contracts in compliance with Indian laws.
File annual returns with the MCA.
Maintain proper accounting records and have them audited annually.
Comply with Income Tax Act and GST Act requirements.
Submit Foreign Liabilities and Assets (FLA) return to the RBI.
Engaging legal, financial, and business consulting firms can help streamline the process, especially for regulatory approvals and compliance.
Establishing a foreign business presence in India requires navigating a complex maze of regulatory requirements, local laws, and industry-specific compliance. Here’s why we are the trusted partner for businesses seeking to expand into one of the world’s most dynamic markets:
We have an in-depth understanding of India’s corporate laws, FDI policies, and sector-specific guidelines. Our experience ensures your business structure aligns perfectly with regulatory standards, minimizing delays and complications.
From identifying the right business structure to completing all registration formalities, obtaining necessary licenses, and setting up bank accounts, we provide a seamless one-stop solution tailored to your business needs.
Every industry in India has unique requirements. We offer customized advice to ensure compliance with specific FDI caps, licenses, and market entry conditions, giving your business a competitive edge.
We prioritize speed and efficiency, ensuring your company is set up and operational as quickly as possible. Our streamlined approach minimizes delays and allows you to focus on core business activities.
Our team comprises legal experts, financial consultants, and business advisors with years of experience assisting foreign companies. We work collaboratively to handle every aspect of the process with precision.
Understanding the Indian market is crucial to your success. We provide valuable insights into local trends, opportunities, and challenges, helping you make informed decisions that drive growth.
Our relationship doesn’t end with company registration. We offer ongoing support, including compliance management, tax filings, and assistance with labor laws, to ensure your business remains in good standing.
We value your trust and ensure complete transparency in our pricing. You can count on us for clear communication and a detailed cost breakdown for every service.
We’ve successfully assisted numerous international businesses in establishing a presence in India, from startups to multinational corporations. Your success is our success.
When you choose us, you’re not just hiring a consultant; you’re gaining a partner dedicated to your growth in India. Let us simplify your entry into the Indian market and set you up for lasting success.
You can register various types of entities, including a Private Limited Company, Limited Liability Partnership (LLP), Sole Proprietorship, or foreign company branches like Liaison Offices and Project Offices.
Yes, foreign nationals can set up businesses in India, subject to compliance with Foreign Direct Investment (FDI) regulations.
The setup process typically takes 15-30 days, depending on the type of entity and the required approvals.
The costs vary based on the business structure, location, and services required. Contact us for a customized quote.
No, the process can be managed remotely. However, certain legal and compliance procedures may require your authorization.
Yes, under the Startup India initiative, businesses can benefit from tax exemptions, easier compliance, and funding support.
Promising sectors include technology, e-commerce, manufacturing, healthcare, renewable energy, and agriculture.
We provide comprehensive legal and regulatory compliance services to ensure your business operates within the framework of Indian laws.
Ready to explore the vast opportunities India has to offer? Let us be your trusted partner in your business journey.
Contact us now to schedule a consultation and take the first step toward success in India.
Vidhu Duggal and Company (‘VDC’) is a Delhi-based Chartered Accountancy firm with a strong staff of competent and proficient Chartered Accountants that are capable of handling all aspects of the financial services industry.
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