COMPLIANCES FOR INCORPORATION
For the purpose of this proposal, we have assumed that you would like to establish a presence in India through a private limited company whereas there are a number of other corporate structures available where we could assist in either devising the best possible option for your business and/or establish those structures if already elected by you. The incorporation of a company in India however is a step by step process involving the following compliances under the Companies Act, 2013 which is the central law governing the incorporation and operations and management of companies in India.
- Every private limited company in India must have at least two (2) directors on the board of the company, one of whom is required to be a resident Indian. The directors of the Company need to be identified and a Director Identification number, which is issued by the registrar of companies, needs to be obtained for such directors. A Digital Signature Certificate also needs to be obtained for each of the directors of the Company.
- The name of the proposed company needs to be approved by the registrar of companies.
- The charter documents must be drafted and filed with the registrar of companies, along with other statutory forms disclosing relevant details such as the first directors of the company, consent of such directors to act as directors, criminal/conviction history of the directors, registered office address of the company.
- Statutory forms and other necessary documents need to be filed in respect of the foreign investments in the company with the authorised dealer banks and the Reserve Bank of India which is India’s central bank.
INDUSLAW provides assistance and advice on issues arising under the Companies Act, 2013 as well as the foreign exchange laws in India (including matters such as the approvals for investments, mode of investments, structuring of investments, filing of statutory forms, maintenance of statutory registers and records, obtaining certifications) ensuring continuous compliance with all requirements thereunder.
POST INCORPORATION REGISTRATIONS
Once the corporate entity is incorporated, certain registrations will be necessary for various operational purposes. listed below are the common post incorporation registrations required in India. There could be variations and/or more registrations maybe required depending on the exact nature of business.
- Permanent Account number (PAN) for tax filing purposes.
- Tax Deduction and Collection Account number (TAN) in respect of tax deductions made at source from payments made to employees/others.
- Goods and Services Tax (GST) registration for payment of taxes in respect of sale of goods and/or provision of services.
- Professional Tax registrations in each of the concerned states in respect of tax deductions made from payments made to employees in such states.
- Import and Export Code for carrying on the import or export of goods and services in India.
INDUSLAW has the required expertise to assist and advise your organisation in the procurement of the required licenses and permits.