29 July 2013
A foreign company wants to open a branch in India through me. They are offering me the position of the country director (a shareholder). Now I want to know the procedure for getting the foreign company registered in India. What are the pros & cons of becoming a shareholder in this company?
29 July 2013
PROCEDURE TO REGISTER A FOREIGN COMPANY IN INDIA Any foreign company can establish its place of business in India by filling Form 44 (Documents delivered for registration by a foreign company)( http://www.mca.gov.in/MCA21/RegisterNewComp.html). The eForm has to be digitally signed by authorized representative of the foreign company. There is no need to apply and obtain DIN for Directors of a foreign company but the DSC of the authorized representative is mandatory, which again is not required to be registered on MCA Application The E-form 44 along with the following documents as attachments, has to file with the Registrar of Companies within thirty days of the establishment of the place of business, for registration— a. Charter, statutes or memorandum and articles of association or other instrument constituting or defining the constitution of the company is to be attached. If the same is not in English language then it should be translated copy in English language. b.Details of individuals’ directors are to be attached. Details should contain name, surname, former name-if any, residential address, occupation and other directorship, if any. c.Approval letter from Reserve Bank of India for the setting up of business in India, d. Power of attorney or board resolution in favour of the authoritsed representatives is to be attached. e.Director’s details—in case of body corporate, details containing name and complete address of body corporate. f.Secretary details—if any. The form will be digitally signed by the authorized representative of the foreign company (2) The details of directors, Secretary and body corporate should contain the following particulars, that is to say : (a) with respect to each director— (i) in the case of an individual, his present name and surname in full, any former name or names and surname or surnames in full, his usual residential address, his nationality, and if that nationality is not the nationality of origin, his nationality of origin, and his business occupation, if any, or if he has no business occupation but holds any other directorship or directorships, particulars of that directorship or of some one of those directorships; and (ii) in the case of a body corporate, its corporate name and registered or principal office; and the full name, address, nationality and nationality of origin, if different from that nationality of each of its directors; (b) with respect to the secretary, or where there are joint secretaries with respect to each of them— (i) in the case of an individual, his present name and surname, any former name or names and surname or surnames, and his usual residential address; and (ii) in the case of a body corporate, its corporate name and registered or principal office: Provided that, where all the partners in a firm are joint secretaries of the company, the name and principal office of the firm may be stated instead of the particulars mentioned in clause (b) of this sub-section.
bfore investing in the shares (to become shareholder) u hav to see regulatory provisions of FEMA.
29 July 2013
"establishment of the place of business" Is this clause mandatory? Right now am planning to start the office from my home itself. Is my address sufficient?
I will suggest you to read Foreign Exchange Management (Establishment in India of Branch or Office or Other Place of Business) Regulations, 2000 and Circulars and Notification issued by RBI before becoming director or shareholder or authorised representative of such branch office.
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