Registrars of Companies (ROC) in India, appointed under Section 609, are vested with the principal duty of registering companies established in the respective States and Union Territories in India.
The setting up of business in India is regulated by the Indian Companies Act, 1956. The Act lays down the guidelines for foreign companies that wish to set up their business in India. As per the law, these companies can:
Under this form of business set-up, an Indian company is incorporated which is fully owned by the Foreign company. Where 100% FDI is allowed, there is no need to join hands with a local Indian national or a local company (JV partner) and the ownership can be kept concentrated in the hands of the Foreign Company desirous to venture into India. Foreign Individuals can also form an Indian company with 100% shareholding.
This is the preferred option for companies that wish to explore opportunities for business and investment and also create awareness about their products and services in the Indian market. Foreign companies can set up a liaison office only after obtaining approval from the Reserve Bank of India (RBI), the apex exchange control authority.
If a foreign company wishes to establish office in India for a limited period to execute a specific project, it may establish a project office as a temporary base for its Indian operation.
A foreign company which does not wish to establish/invest into an Indian company, can set up a branch office in India for certain specified activities with the prior approval of RBI.
Foreign companies can set up wholly owned subsidiaries in sectors where 100 percent foreign direct investment is permitted under India's national FDI policy. For registration and incorporation, a set of applications have to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies.
A recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010-2012. A report by Ernst and Young, foreign direct investment in India has witnessed an eight fold increase in its FDI in March 2012. The FDI in 2010 was $44.8 billion, and in 2011 it experienced an increase of 25% to $50.8 billion. With the government initiating further reforms into the sector, India is set to attract major investments in the near future.
India’s foreign direct investment (FDI) rules have been substantially liberalized over the past several years. Most sectors are now open to 100% FDI, meaning thereby, that the foreign companies do not need a prior approval for investment either by the Government or the Reserve Bank of India. The investors are only required to intimate the Regional office concerned of the Reserve Bank within 30 days of receipt of inward remittance.
There are certain activities that are not covered under the automatic route and that require prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Following list include the activities for which automatic route for foreign investment is not available:
The Companies Act, 1956 stipulates rules and regulations for incorporation of companies in India for both private and public companies. Minimum two directors and two shareholders are required for incorporating a private company whereas minimum three directors and seven shareholders are required for incorporating a public company.
Audit is a term that is commonly used in accounting and it refers to evaluating an organization, individual, and product or service. Audits may be required by statute; alternatively, organizations may require them to present them to third party users who would use the information to make business-critical decision regarding investment in the said organization.
As enterprises become more dependent on automated systems and integrated technologies, it becomes imperative for the management to control costs associated with performing audits of their internal information systems. Indeed, today internal information audits are a critical component of an organization's functioning for proper operation of the internal audit department.
PAN - Permanent Account Number - is a unique number comprising ten characters, allotted by the Income Tax Department of India. Given that it is permanent, implies that it will change with the change of your address or station. PAN under the new series is being issued to replace old PAN or GIR No. You require a PAN Card to conduct all dealings with the Income Tax Department of India and other government organisations.
VAT is considered to be one of the most radical reforms implemented for the Indian economy. It is basically a sales tax collected by the government of the state in which the final consumer is located, or in other words, by the government of destination state on consumer expenditure. VAT replaced the Delhi Sales Tax Act and came into effect from 1st April 2005.
The technological advances have given a level playing field to companies across all sizes-small, midsize and Fortune 500 firms. Outsourcing grants organizations the freedom to offshore their non-core functions to companies in countries like India that offer a highly skilled workforce at a much lower rate.
More and more businesses are outsourcing their legal and tax compliance requirements to tax advisors and legal firms in order to deal with complex transactions and litigation and access effective advice in an environment of fast-evolving laws and regulations.
In today'rapidly changing business landscape, organizations have to constantly strategize and plan their business management services to conform to evolving rules and regulations and respond to market changes.
Established in the year 1991, the 'Software Technology Parks of India' (STPI) is a government of India managed export oriented scheme for the development and export of computer software, including export of professional services.
RegisterInIndia provides a host of financial services to the non-resident Indians (NRIs) and people of Indian origin (PIO). We specialize in providing high quality advisory and investment services to make your investments in the country a smooth, hassle-free and profitable experience.