Today, India is more and more interesting for entrepreneurs. For foreign capital owners, this jurisdiction is interesting and profitable, since it is based on the Anglo-Saxon legal system. In addition, India is also convenient for the development of offshore structures, since there is no tax levy in this country levied on capital increases. However, you need to pay VAT in India. The rate for this indicator is determined separately within each state and includes educational fees and various fees, adding an additional 2% to the payment. The corporate tax rate for foreign companies is 40%, and for local ones – about 30%.
India has an open register that records all the information used by registration agents. Hiring an agent is mandatory to comply with local regulations. A public company in India is required to:
- create two positions for directors, residency does not matter, and for 1 resident secretary;
- rent an office and register it;
- keep accounting records, draw up and submit to specialized bodies control reports – annual, in relation to the received profit and accounting;
- to conduct an audit (carry out them in the future) and provide an appropriate report to the auditor;
- when conducting correspondence, always indicate the state in which the company is registered and its name.
A company in Indian jurisdiction can be established as a private enterprise or an open-ended organization. This is true if the company’s capital comes from foreign founders. It is allowed to use subsidiaries and representative offices to conduct business internationally. Non-resident entrepreneurs, most often, choose a private company with a limited type of liability. The constituent structure should have from 2 to 50 people, and the company’s turnover for the year should not exceed $ 2.5 million. The registered capital is $ 1,580.
Company registration procedure in India
It is possible to create an organization in India in several steps. And even despite the fact that this procedure has been significantly simplified compared to previous years, the process will require time and specialized knowledge.
The founders of the company prepare the constituent documents, that is, the Statute, a list of members of the management, a list of secretaries, data on capital, etc.). After that, the founders need to:
- obtain certificates for confirmation of the use of digital signatures in the Ministry of UIA and DIN identification numbers;
- to assign its own name to the company by submitting an application and sending the Statute and the agreement of the founders;
- pay stamp duty, state duty and tax levy intended for the capital being invested;
- certify all necessary documentation with the treasury.
Companies that receive a registration certificate must start creating and issuing an investment prospectus. This is necessary in order to pay VAT while the company is operating.
If you need to register a company in India, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in India. Write to us in the CRM form and we will help you register a company.
Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.
We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.
If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.