India: how to register a business in India?

Feb. 19, 2018 - PRLog -- Registering a company in the World's biggest democracy can be easy if have the right information and guidance. Cemented on the world map for booming investment opportunities, India is slowly, but surely becoming a World power. Deemed the new manufacturing plant of the World, and already a leader in outsourcing of telecommunications and other services, India attracts many investors from all walks of life.

Despite becoming a manufacturing giant, the country is also notorious for Government red tape and moderate corruption. Therefore, finding the right support on the ground is vital for quick company formation and post-registration requirements. In most cases personal travel of the company signatories is not required, which positively negates a visit to the country, if such is not on the horizon any time soon.

Registration process

The main steps required to incorporate a new business in India are as follows:

• Application for Digital Signature Certificate by submitting: i) 2 passport size photographs and ii) notarized passport and proof of address copies of each stakeholder;
• Application for Digital Signature Certificate with the Certifying authority. This step will allow foreign directors and shareholders to electronically sign the incorporation forms directly to the Registrar of Companies at the MCA;
• The local consultants submit DIN-3 and DIR-4 application forms to the MCA in order to obtain the Director Identification Number;
• The actual incorporation takes place when the incorporation team submits the INC-29 company incorporation form, together with i) company name reservation form and ii) Memorandum and Articles and iii) subscriber papers (notarized by a foreign notary public in case of non-travel process).

You can read more about the registration steps on Healy Consultants Group PLC India webpage (http://www.healyconsultants.com/india-company-registratio...). As you can see, this process can be lengthy and involves several steps, the completion of which often depends on the speed of the Government workers in India. Consequently, having the right support on the ground is vital to move the various applications timely and efficiently.

Post-incorporation steps depend on the specific case, but in most of them, the new company will need to submit a tax registration application to the Income Tax Department in the specific district, by submitting i) form 49A and ii) form 49B. Other steps include application for social security at the Ministry of Labour and Employment when the company employs its first employee.

Conclusion

The India company formation process involves multiple steps, that can be straightforward yet often time consuming. Fortunately India business setup does not involve physical travel to the country.