A foreign company planning to set up business operations in India has the two options either to register as an Indian company or a foreign company.
If the foreign company establishes its business by establishing an Indian Subsidiary Company under Companies Act, 2013 and under any previous company law to the extent applicable, all the provisions related to the Indian companies will apply on that company. It can be a private limited company or a public limited company.
But if foreign company opt to do its business as a foreign company through branch, liaison office or project office it has to comply with a few other provisions also.
Preliminary requirements to form a Foreign Subsidiary Companies:
- At least two promoters (shareholders/ members)
- At least two directors (may be shareholder/ member or employee)
- At least one resident* director (shareholders/ members or Indian citizen)
- Office space in India to be used as registered office
- An authorized capital of INR 100,000/- (Minimum)
- Director Identification Numbers(DIN) of directors
- Digital Signature Certificates(DSC) of the directors
- Proposed names of company (at least three)
- Name search and application for name availability
- Drafting of Bye Laws (MOA & AOA)