Foreign Company In India
A booming concept is India at present is that many foreign investors are invited to establish their concern in India. The best part is it encourages entrepreneurs from all over the world to participate in Indian market for the mutual growth. Those entrepreneurs from across the world looking for setting up companies in India has various options as recommended by Indian Govt as per FDI policy.
A foreign company can have a business place in India by following formalities. A foreign company may either form a company
Govt approval for foreign companies setting up in India is not required for FDI under the Automatic Route. Automatic Route is directly without approval can set up companies. But FDI under automatic route is now allowed in all sectors. In such cases of non approval the only information is to be sent to RBI within 30 days OD inward remittance or issue of shared to Non-residents is required.
In case of industries not falling under automatic route has to get approval from Govt for setting up business in India. These are the recommendations proposed by Foreign Investment Promotion Board (FIPB).
India is progressing towards reforming its tax policies and systems so as to assist globalization of economic behavior. The corporate tax rate for foreign companies is 40%. The net tax rate is far lower than this on account of various deductions and exemptions available under the tax laws. Tax holidays are available in Special Economic Zones set up to make industry globally competitive. Infrastructure Sector Projects enjoy special tax treatment/holidays. A user friendly tax administration is being introduced with round the clock electronic filing of customs documents.
A foreign company planning to set up business operations in India has the following options
A foreign company can commence operations in India by incorporating a company under the Companies Act,1956 through
Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners.
Joint Venture may entail the following advantages for a foreign investor:
Foreign companies can also to set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy.
For registration and incorporation, an application has to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. For details please visit the website of Department of Company Affairs under Ministry of Finance at http://dca.nic.in