Looking For Company Incorporation, Accounting, FDI, FEMA Advisory, or Taxation Consultants in India?

A virtual office provides business an address for communication purpose such as mailing address, phone answering services, meeting rooms, and videoconferencing. Employees of such companies generally works from home or work from different location.

Company registration does not require that all employees or some of the employees should work physically at registered office. Therefore, virtual address can be used for company incorporation. However, documents for proof of address must be proper such as ownership deed, rent agreement, electricity bill etc.

If you are an NRI and looking for some virtual address in India then VJM Global can make things easy for you and can help you find virtual office in India.

In theory, you can apply for a phone number in the name of a company once it has been registered. VJM Global can enable you to do so at a reasonable cost.

Yes, generally all forms required to be filed with RoC come with a government fee. Amount of fee depends on authorised and paid-up share capital of the company. Further, such government fees enhance substantially in case of delay in filing.

Cost to run a business completely depends upon the nature of business, turnover of the business and various other factors. For company incorporation cost and other related cost, feel free to get in touch with us.

A secretarial compliance package that we offer at VJM Global would meet all of your needs. We will provide a service of filing of all applicable forms with RoC, preparation of documents for submission purpose etc.

The fiscal year for Indian companies runs from 1 April to 31 March.

Yes, VJM Global offers accounting and payroll services, and the availability of each depends on the number of employees and turnover, respectively. We offer a wide range of services, which are bundled into a retainership package, including accounting, payroll, compliances, return filing, audits, and transfer pricing. Depending on your projected sales in India, the number of people you need to hire, and the monthly payroll costs, we’d be delighted to provide inclusions and rates for the same. However, you can contact VJM Global Team at [email protected] for additional details.

Indeed, at VJM Global, we have a dedicated group of lawyers who handle trademark applications. Under the Madrid Protocol, we also register trademarks internationally.

The import and export licenses typically arrive in 3–4 working days subject to availability of documents. Further, as per existing norms, Import and Export code is valid for lifetime. However, any change in particulars furnished at the time of obtaining license should be informed to the department within reasonable time

Assistance in opening a bank account is included in all of our packages. We at VJM Global, constantly communicate with bankers on your behalf and give them the information they require. There are no requirements to visit the India for the purpose of opening a bank accounts in India.

No, the legal representative need not be present to open an bank account in India.

Generally documents related to KYC of Company, directors and address related documents are required for opening a bank account in India.

Company documents that may be required for opening a bank account are:
1. Certificate of Incorporation
2. MOA, AOA, and 
3. PAN card
4. Board resolution to authorise any of the director etc.

Team VJM will provide frequent guidance on the numerous Statements and Filings that must be made to various regulatory agencies from time to time. As previously indicated, our retainer ship packages will handle all compliances so you may concentrate on your main business operations. 

Documents needs to be submit with government authority will be obtained from by our team as and when applicable.

The process of company incorporation takes around 20 to 60 working days subject to timely availability of documents and timely approval by the government and other legal authorities. Considerably, the average time for company incorporation is around 30 days.

Yes, time of registration depends upon the entity to be formed.

The process of Company registration takes somewhere around 30-60 days subject to Ministry’s approval.

For FY 2022-23, LLPs (Limited Liability Partnerships) and partnership firms are subject to 25% tax rate (AY 2023-24).

Further, If the net income exceeds INR 1 crore, a surcharge of 12% of taxable income will apply. However, there will be some minimal alleviation for the surcharge (where income exceeds INR 1 crore, the total amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of INR 1 crore by more than the amount of income that exceeds INR 1 crore).

In addition to the surcharge, the Health and Education Cess will be 4% of income tax.

In India, domestic companies are liable to pay income tax at rate between 15% to 25% depending upon terms and conditions defined under Income Tax Act. Such as, Companies with turnover or gross receipts exceeding INR 400 Crores are liable to pay income tax @ 25%. Similarly, the government has recently announced a reduction in corporation taxes to 15% for new businesses.

In general, business with aggregate turnover exceeding following threshold limit are required to obtain GST registration:

1. Aggregate turnover exceeds INR 40 lacs, in case of supply of goods, or
2. Aggregate turnover exceeds INR 20 Lacs (All India basis), in case of supply of services.

However, in various situation GST registration is required from day 1 irrespective of aggregate turnover such as Import/Export of goods or services, GST payable under Reverse Charge, Inter-state supply of goods etc.

VAT is an old concept in India and the same was subsumed by Goods and Service Tax (GST) with effect from 1st July, 2017. Therefore, now no VAT registration is required. However, covered entities are required to obtain GST registration.

Please note that there are some industries which are still covered under VAT and required VAT registration such as Petroleum products, natural gas etc.

Generally, a trading company is liable to pay Goods and Service Tax on sale and purchase of goods or services and Income tax on profit earned from the business.

GST is charged between 0% to 28% depending upon category of the goods and service. Further, the company will be entitled to claim credit of GST paid on purchases and services procured.

No. As compared to countries like US and UK the taxes in India are very less. Profit earned in India from business is subject to direct tax, i.e., Income Tax. Further, companies are also liable to pay indirect taxes such as GST, Custom duty, Professional tax etc.

Yes, there are foreign exchange limits on transfers between nations. Any money transfers are subject to FEMA regulations and various income tax regulations such as TDS.

An Indian entity can collect international investment by following methods:

1. Issuance of Capital Instruments: Under the Companies Act of 2013, a company may issue capital instruments (such as equity shares, debentures, preference shares, and share warrants) to foreign investors and obtain foreign financing.
   
   Start-up companies can issue equity or equity linked instruments or debt instruments against receipt of foreign remittance. In addition, Start ups can issue convertible notes to persons resident outside India. 
   
2. External commercial borrowings:  External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities. ECD should adhere to guidelines of minimum maturity, permissible and prohibited end uses, maximum all-in-cost ceiling, etc.

A foreign entity have following investment route in India:

1. Automatic Route: Automatic route means the entry route through which investment by a person resident outside India does not require the prior approval of the Reserve Bank of India or the Central Government. Government has specified category of industries covered under the Automatic route.
   
2. Government Route: ‘Government Route’ means the entry route wherein investment by a person resident outside India requires prior Government approval. Foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.
   
3. Automatic Route + Government Rote: This is a hybrid route of investment. Sectors covered under this route do not require any approval to a specified % of investment. E.g. In the air Transport services sector, FDI upto 49% is covered under automatic route. However, Investment made beyond 49% requires prior approval of the government.

In an Indian firm, a non-resident Indian can serve as a director and shareholder. However, they cannot have the sole position. At least one director of the company must be an Indian resident. 

Further, a non-resident Indian can become director or shareholder in more than one company simultaneously.

Yes, foreign entities are allowed to open a company in India holding 100% of equity share capital of the Indian Company. Such Indian companies are known as wholly owned subsidiary, 

Please note that 100% investment can be made only in sectors where 100% FDI is allowed. Sectors in which 100% FDI is allowed under automatic route, foreign entity may hold 100% equity shares without obtaining any prior approval. Further, where 100% FDI is allowed subject to government approval, foreign entity is first required to obtain government approval.

A foreign company can retain 100% shares hence, yes it is fine to not allow any shares to your Indian resident director.

For the purpose of Company incorporation, 2 types of capital are mentioned generally, i.e., Authorised Share capital (Maximum Amount of capital than can be raised by company from shareholders) and issued & paid-up share capital (share capital actually subscribed by members). Therefore, paid up share capital is the investment made in company.

In case of company capital investment by NRI, FDI policy will come into picture and therefore, the government will verify the registered capital. Therefore, following incorporation, you must deposit the registered share capital amount into the company’s bank account by specified due date.

For the purpose of incorporation of the company, investors need to inject a minimum initial share capital of INR 10,000 in case of private company and INR 5,00,000 in case of public company at. For the private limited companies, the minimum of INR. 1,00,000 is recommended.  

Rest capital amount can be injected as and when required. Amount required can be invested into business in the form of share capital, i.e., by issuing additional shares of the company or  it can be invested in form of loan, i.e., this amount is required repaid after decided periods of time.

A private limited company’s name must include the phrase “private limited.” The proposed company name must adhere to conditions specified under Companies Act 2013.

For a new company, these are the three options for reserving a name.

• Name Reservation RUN
  A simple web-based form called RUN (Reserve Unique Name) can be used to reserve a company name. In case name requested for reservation in RUN Form is already taken or nearly resemble to any existing Company’s or LLP name then the RoC will mark the form for re-submission. The name reserved through the RUN Process is valid for 20 days following the date of authorization.

• Incorporation and name reservation
  Through the SPICe (Simplified Proforma for Incorporating Company Electronically) incorporation process, desired names may be obtained. However, this process should be followed only if there is more possibility of acceptance of the name. In case of rejection of name by RoC, all documents are required to be prepared again by new name.

• Utilization of a foreign company’s name or trademark
  In addition to other paperwork, the appropriate No-Objection letters in the form of board resolutions or formal authorization must be submitted to the Registrar if the prospective company intends to utilize the name or trademark of the foreign body corporate.

We will assist you in securing a name for your Indian business. Additionally, your Indian Subsidiary may continue to use the name of your Parent Company. After all, you put in the effort to build a solid reputation around it. 

There is a clear preference given for using a similar name as the parent company but in case a similar name can not be acquired then the name has to be unique and not similar to any other registered company. A name similar to or nearly resembles to any existing company’s name, LLP’s name or registered trademarks gets rejected by RoC.

Therefore, generally form RUN (Reserve Unique Name) is filed before initiating the incorporation process to reserve the desired name.

In an Indian firm, a non-Indian can serve as a director and shareholder, but they cannot have the sole position. At least one director of the company must be an Indian citizen. Multiple corporations may be registered at once by the same person. Further a NRI can also open One person company in India.

Only NRIs/ OCIs are allowed to invest in partnership/ proprietorship concerns in India on non-repatriation basis.

Yes, a person can become a director in more than one company or LLP at the same time. Further, a person can become a shareholder in more than one company.

No, even if the parent company is a proprietary company, there would be no risk to the new company’s operations in the future. To assist you in the registration of the company in India, VJM Global team would need the charter documents of the parent company. The charter documents include the registration certificate, the bylaws, and the memorandum of association.

Conversion from one form of company to another is permitted in following manner:

1. Private Limited Company to Public Limited Company and vice-versa: A Private Limited company can be converted to public limited company and vice-versa provided the same is permitted in MOA and procedure specified under Companies Act, 2013 is complied. However, PAN and other registration certificates of the company will remain same only status of company from private limited to public limited will get updated.

2. Partnership Firm to Private limited Company: Option to convert a Partnership firm to company is available but this process includes transfer of business from firm to Company. Newly formed company will be a new business entity having separate PAN, GST registration and other registration. Partnership firms will come to an end whose PAN and other registration will be required to be surrendered.

Forming a company, whether private limited or public limited, is having following advantages:

1. Separate Legal Entity: Unlike sole proprietorships and partnership businesses, private and public limited companies are separate legal entities from their owners. Company can own property, incur debt, borrow money, establish a bank account, enter into agreements and contracts, sue and be sued in its own name.

2. Limited Liability: Members’ liability in a private limited corporation is constrained to the number of shares held by the members. Therefore, if the company experiences financial trouble for any reason, the members’ personal assets won’t be used to settle the company’s debts because their liability is constrained.

3. Perpetual Succession: Private companies have “perpetual succession,” which is continued existence up until their legal dissolution. Therefore, death or addmission of any of the members or directors of the company does not affect the existence of the company.

4. In private corporations, the owners who own the business are in charge of management and control. While the owners retain the majority of the power, the members do have a voice.

5. A private corporation is permitted to lend money to the company’s director and can easily compensate its directors or management, and team members. However, lending to the directors can be done subject to provisions of Companies Act, 2013.
   
6. According to the Ministry of Corporate Affairs, private enterprises have been given a variety of exemptions from compliance requirements. Compared to public limited corporations, there are fewer compliances and restrictions.

Yes, subject to compliance with provisions of the Companies Act, 2013, Foreign Exchange Management Act (FEMA) 1999, Reserve Bank of India (RBI) Regulations, and Foreign Direct Investment (FDI) Policy, a foreigner can set up a public or private limited company in India. However, there must be at least one resident director on the board of a company owned by an NRI.

Also, with effect from 01.04.2021, an NRI can open a one person Company in India.

*Resident director is defined as a person who stays in India for a total period of not less than one hundred and twenty days during the immediately preceding Financial year.

After a company is incorporated, you can check for its details on a government website run by the Ministry of Corporate Affairs in India. Basic information about the company is available for checking by any person without payment of any charges. Information provided on mca portal is Company’s identification number (CIN), authorised capital, paid up capital, date of incorporation, registered office address, information about the directors, and annual filing status etc.

Further, all forms and documents filed by the company with RoC can be accessed by any person on payment of nominal fees on MCA portal.

Both the companies have different status and different treatment under Income Tax Act and Companies Act. 

Domestic Companies are those which are incorporated under Companies Act, 2013 or earlier companies act. Domestic companies have status of resident in India and they are eligible to carry out all operations in India. Further, Domestic Companies are entitled to different tax holidays, concessional rate of taxes in India.

On the contrary, as per Section 2(23A) of Companies Act, foreign companies are those companies which are registered outside India in any other foreign country. Foreign companies can mark their presence in India through setting up LO/BO/PO and it can function under complete supervision of RBI. Further, foreign companies are liable to Income tax at a higher rate.

India is a lucrative option for foreign firms to initiate a business as the Indian government has business-friendly laws supporting foreign firms as well attractive foreign policies and a skilled workforce making India the 6th fastest growing economy in the world. 

Following are the additional benefits:
1. Comprehensive Tax system
2. Low operational cost
3. Indian financial system
4. Vast Trade Network
5. Governmental Initiatives
6. Start-up India Movement

Overseas Citizen of India (OCI) is a more privileged form of NRI. Any of the following person is eligible to OCI:

1. who was eligible to become citizen of India on 26.01.1950; or 
2. Who was a citizen of India on or at anytime after 26.01.1950; or 
3. Who belonged to a territory that became part of India after 15.08.1947; or
4. Minor children of persons who are eligible for OCI. 

OCIs are entitled to a multipurpose, multiple entry, lifelong visa allowing them to visit India at any time, for any length of time and for any purpose.

Further, Answer to the question that whether OCI is permitted to do business in India is Yes. An OCI holder can establish a business in India subject to conformity with the terms of the Foreign Exchange Management Act (FEMA), 1999, Reserve Bank of India (RBI) Regulations, and Foreign Direct Investment (FDI) Policy.

OCIs may participate in partnership or sole proprietorship businesses in India in addition to the aforementioned options on a non-repatriation basis.

A Non-resident Indian may commence a business by forming a Company or partnership form or proprietorship concern in India subject to conditions specified by RBI. A non-resident Indian or a foreigner does not require a residency visa to start a business in India. 

However, to become director in an Indian Company or partners in partnership concern, the following documents are required:

• Photograph
• Application for Apostilled Digital Signature (You can get it From VJM global)
• All foreign directors’ passports should be apostilled.
• A certified copy of your address (Telephone, Electricity Bill, latest Bank Statement)
• Apostilled driving license copy

Entrepreneurs who are planning to enter into the Indian market should ensure compliance with all the legal obligations of the prospective country. A person looking to enter into Indian market is suggested to follow below points to ensure legit setup in India:

1. Identify purpose of set-up in India. A foreign entity may enter into India to make investment in the Indian market or to have a temporary presence in India to promote its business. Manner of setting up in India depends upon the purpose of set-up.

2. Check FDI Permissibility in India: Once the purpose of presence is identified, the next step is to check whether such presence is permitted in India or not. E.g. If a foreign company is proposing to make FDI in a sector which requires prior approval of the government or which is prohibited or where partial FDI is permitted.

3. Decide form of Business structure to be set-up: Once purpose of set-up and permissibility is identified, Foreign entity can take decision that how it need to mark its presence in India such as Liaison Office, Branch Office, Wholly Owned Subsidiary, Joint Venture, LLP etc.

4. Proceed with Government approval and business set-up process: Once foreign entities identify a form of proposed unit in India, the very next step is to begin with completing legal formalities for setting up such business in India. Foreign entity may need to complete following formalities:
   • Obtaining Government approval, if required: If foreign entity is planning to enter into a sector which requires prior approval of the government, then foreign entity is required to obtain prior approval of the government.
   • Set-up Business entity: Once government approval is received for setting up business, Next step is setting up a business entity. This setup may involved incorporation of company, Forming Partnership firm, set-up LO/BO/PO in India.
   • Obtain registrations: Once a business entity is set-up, it requires multiple registration to function smoothly such as GST, PAN/TAN, Shops & Establishment, professional tax, EPF/ESI Registrations etc.

5. Once the registered entity in India obtains all applicable registration, it may simply commence with business operations in India.