How Americans Set Up Their Business In India

India fever is increasing among foreigner business entrepreneurs who want to start their businesses in India. At a time, when major economies of the world are experiencing slow economic growth, job cuts, layoffs, a sharp decline in demand for products and services, India (After China) is the only country in Asia which has managed to register a tremendous growth in several fields. 

India's massive population, a big customer market, initiatives taken by the Indian government for business promotion, availability of highly educated and skillful professionals at low price tags, etc, encourage foreign business persons to start their businesses in India and earn handsome revenues  every day/week, month.

A good number of American companies, entrepreneurs, and firms also start their business activities in India. For this, they have to complete several formalities and follow the rules and regulations. Here is a brief summary of to do list:

1. Formation of A Private Limited Company

There are different formats for the creation of companies in India. Foreign companies and entrepreneurs can create private limited companies in India and make an investment up to 100%. You can choose the business model as per your specific business needs, budget, and resources. However, the formation of a private limited company as a wholly owned subsidiary of a foreign company or joint venture is the best option for foreign individuals. For the registration of Branch Office, Liaison Office or Project Office, RBI and/or Government approval is required. 

2. Terms And Conditions To Form A Company In India

In order to start a company in India, at least 2 persons and an address in India is required. A private limited company in India should have minimum 2 directors and 2 shareholders. Apart from this, one of the Directors of the Company must be both an Indian Citizen and Indian Resident. Foreign nationals can hold 100% shares of an Indian company. 

For foreign companies, an address in India is required. It helps the company to determine the legal jurisdiction for the settlement of legal problems faced by the company. For example- if a company is established in New Delhi, cases related to it can be pursued in any court in New Delhi. 

3. Overall Cost For Company Formation

The cost of starting a company actually depends on your specific business model. The registration for the company is accomplished within a few days, allowing foreign nationals to start a business easily and quickly.

4. Key Formalities After Company Formation:

Once your company is registered in India, your Indian director can help you to open a bank account for the company in India. When a bank account is opened, you can make FDI and report it to the Reserve Bank of India. Its procedure is simple and fast. 

So, are ready to start a business in India? Looking for a suitable person that could help you to complete all these formalities easily and quickly? If yes, then use our company registration services India. We will help you to complete all formalities and start business activities in India.

Have a look at the following chart how we do it:

Essential formalities	Time	Overall cost (Estimated)
To Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National)	1 day	INR 100
To Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National)	3 days	INR 1500
To Reserve the company name online with the Registrar of Companies (ROC) (National)	2 days	INR 500
To Stamp the company documents at the State Treasury (State) or authorized bank (Private)	1 day	INR 1,300 (INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1)
To Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National)	5 days	INR 14,133
Make a seal (Private)	1 day	INR 350
To Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National)	7 days	INR 67
To Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department	7 days	INR 57
To Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal)	2 days	INR 6,500
To register for GST	3 days	…......
Register with Employees’ Provident Fund Organization (National)	12 days	NA

Note: We also help you to complete all other formalities if required for the smooth operation of your business.

Final Words:

As India’s economy is making rapid progress in several sectors, American entrepreneurs and companies are showing a great interest to start business activities in India. These are the steps through which they can easily set up their business ventures in India and start earning. Contact us now if you are an American citizen looking for a helping hand to begin your business in India.

Source: https://businessventuresindia.wordpress.com/2017/10/28/how-americans-set-up-their-business-in-india/