- Are you an NRI and want to register a company in Incredible India? Here’s a quick setup guide.
- Incredible India has become the hot spot to start a business amongst NRI and OCI. India is the fastest growing economy currently and is ever developing country for decades now. India is a promising destination to start a new business. Currently the manufacturing sector is booming and also backed up by vast skilled and cheap labour, consumption demand remains strong and hence, the investors gets attracted towards company registration in India and to invest in the country.
- Not only this but for making India a place for “Ease of doing Business” the Government has always tried to make it easy for not only Indian residents but also for the NRIs or OCIs. The Ministry of Commerce and Industry created the Foreign Investment Promotion Board (FIPB) to bypass all the difficulties of doing business in India and ensure smooth sailing to all potential foreign investors.
- How can an NRI enter in India for doing business?
- The following are the ideal business structures through which Non-Resident Indians can register a business in India:
- Limited Liability Partnership
- Private Limited Partnership
- However, In case of the ‘Non-resident Indian’ (NRI), and Overseas Citizens of India (OCI), the Private Limited Company registration in India could be considered as the ideal kind of business that could be registered in India.
- Reasons for choosing Private Limited Company registration in India by an NRI or OCI
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A Private limited company can be
started with as less as two shareholders.
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Private limited companies are seen as
particularly ideal for non-Resident Indians due to the nature of its legal and
capital requirements.
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Compliance of a private limited company
is much simpler compared to that of a Public limited company.
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There is no requirement of prior
approval from the Government or the Reserve Bank of India for directing foreign
investments into a private limited company.
- Pre requisites for Private Limited Company registration in India
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2 directors
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2 shareholders
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An office address in India. (One of the
directors must be an Indian Resident)
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For becoming a director of an Indian Company,
one should obtain Directors Identification Number (DIN) and Digital Signature
Certificate (DSC). Most of the forms filed with the Registrar of
Companies (ROC) must be signed with the DSC.
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In order to register a Private Limited
Company or Public Limited Company by an NRI, the identity proof, address proof
as well as documents regarding Indian origin are required. Every one of these
documents is required to be attested through the Indian embassy or notary
public.
- FEMA Regulations for NRI and OCI for Company registration in India
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To ease investment in India, the
government permitted NRIs as accepted entities for investment as per
the Regulations notified under Foreign Exchange Management Act, 1999.
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NRIs as per current FDI/FEMA
legislation in India includes persons who are resident outside India but are
citizens of India or are persons of Indian origin.
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NRIs can invest in India either by
purchasing shares of an Indian company or investing in the capital of any
existing entity or by registering a new business in the country.
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The FEMA regulations for NRIs an OCI
wanting to invest and register a company in India are described in Schedule 4
of Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident Outside India) Regulations, 2017.
