Company Formation

This query is : Resolved

Mihir (Querist)
Follow

14 April 2008 Can an NRI (indian citizen staying abroad formore than 10 years) and resident indian form Private limited company in India. the main object of the company will be to engage in the areas of services related to capial market transactions. Are there any specific approvals for formation or else it will same as any other company formation?

R.V.RAO

R.V.RAO (Expert)
Follow

15 April 2008 Before a limited liability company is registered in partnership with Indians, the promoters agree and sign a Joint Venture Agreement. This agreement details the shareholding, capital contribution, duties and responsibilities of the directors in the conduct of business and how the company can be dissolved or Exit Route. Based on this agreement, a legally binding Memorandum of Association and Articles of Association for the proposed company is drawn up. After an approval is obtained for its name from the Registrar of Companies, it is incorporated or registered with the Registrar. All this takes a good two or three months.
WWW.INDIAENEWS.COM

NRI can give Power of Attorney to a person in india to sign the documents on your behalf. After the Company is incorporated, NRI can appoint Alternate Directors, to function on his behalf while he is not in India. But at least once, he should be in India within one month of the incorporation of the Company. There can be one meeting of Board of Directors during his stay in India and all other formalities including those of appointment of Alternate Directors can be complied with.

Generally, prior approval is required from the RBI before investing in India. Some categories of businesses are covered under automatic approval process. However, one has to apply for the same. There are some post-incorporation filing formalities after the remittance of capital from overseas to India and on issue of shares.source:www.madaan.com

other formalities include:

Obtaining Permanent Account Number (PAN) from Income Tax Department

Obeying Shop and Establishments Act

Registration for Import Export code from Director General of Foreign Trade

Software Technologies Parks of India registration (STPI) if required

RBI approvals, if required.

source:www.madaan.com

R.V.RAO