How to Register a Foreign Company in India

How to Register a Foreign Company in India

Whether as an Indian company or a foreign company, the foreign company plans to set up business operations in India, there are two options. If foreign companies to establish their business, through the establishment of the company in India, "Company Law", 1956, Indian companies all relevant provisions will apply to the company. However, if the foreign company is a foreign company started its business through a branch, liaison or project office, it is also consistent with other provisions. 1956 of the "Company Law" Article 591 to 608, including the Indian or foreign companies incorporated outside entity, the relevant requirements. Section 591 says the first 592 to 608 shall apply to all foreign companies. Part of these obligations, the foreign companies to submit their information is relevant, such as accounting information, which holds property in India, company registration fees and other registries

Foreign companies [Meaning and Definition]

Under section 591 foreign companies are:

Indian companies incorporated outside, after the commencement of the Act, a place of business in India;

Incorporated outside India, the company has before the commencement of this Act, establish a place in India, and continues in India has an established place of business in the commencement of this Act.

Place of business is where there is a physical or visible indication that the company may have liaison offices are.

It is necessary to note here that foreign companies controlled by foreign companies differently. According to RBI companies can be regarded as a foreign holding company, (a) owned 40% or more of its shares in any country outside India, (b) a subsidiary of its parent company registered in any country abroad, (C) 25% or more of its shares in India have a foreign-controlled joint-stock company, which is not a management agent, and (d), it is a foreign-controlled management agency management company.

Indian citizens held or body corporate requirements will attract more foreign companies, of which more than 50% of the paid-up capital.

The initial obligation of foreign companies:

Foreign companies established place of business in India within 30 days after delivery of the Republic of China shall be the following documents:

(A) a certified copy of the charter, statutes, or memorandum and articles of association of the company or other instrument or defining the Articles;, if the instrument is not in the English language, a certified translation;

(B) The Company's registered or principal office address;

(Three) the list of directors and company secretary,

(D) the name and address or live in India, some one or more of the names and addresses of authorized representative of the company services in the process, any notice or other document shall be served on the company to accept;

(Five) offices in India, which is regarded as its principal place of business in India, the full address.

The record should be in two places at the main Registrar of Companies in New Delhi, and the Republic of China-based companies with principal place of business is located has jurisdiction in the country. Certification documents shall be in accordance with the Companies (Central Government) rules and forms, 1956 16.

Sustained foreign-invested enterprises, foreign enterprises obligations: The following is the formal obligations of foreign companies:

1] Return of Alterations:

Foreign company shall within 30 days of the change / alter any details contained in the following documents is changing the return:

Charter, statutes or memorandum and articles of foreign companies or other instrument constituting or defining the Articles of Association;

The registered or principal office of the foreign company;

A director or secretary of the company

Name or address of any person authorized to accept service on behalf of the company;

The company's operations are primarily in India,

Governing part is the "Company Law" Section 593.

2] accounts:

Section 594 requires a foreign company to maintain its global operations in India and accounts book, it is mandatory to have three copies of filed within nine months of the fiscal year from the Republic of China closed. These accounts should be accompanied by a list of local business in India. On foreign companies operating in India, the income statements, balance sheets and other accounting records should be prepared.

3] Description Name:

Section 595 "Company Law", 1956 instructed the foreign companies conspicuous place in every office or place of business in India to conduct foreign, its name and country of incorporation, in the letter easy to read Chinese and English characters, but also local language (where it is located). Meanwhile all these details must also be caused letterhead, business letters, bills head, letterhead, and all notices and other official publications be stated.

4] service notifications:

Any process, notice or other document shall be deemed a sufficient service of a foreign company, if the notice or document to any person, whose name has been delivered to the Registrar under the provisions of this part of the leave or send the post to the Address has been served.

5] Notification stop place in India:

If you no longer have any foreign company doing business in India, where the Registrar shall immediately give notice to the fact that the date of such notice, the Registrar of Companies of the obligation to submit any document should stop its business in India no other place.

Impact of non-compliance:

If the foreign company fails to comply with Company shall be entitled to bring any action after the presentation of any obligation upon any group, any counter-claim or instituted any proceedings in respect of any contract or transaction processing until it has complied with the company's behavior, but does not comply with the provisions of Part IX of this will not affect the validity of the contract. In addition, if the foreign company does not comply with any of the above provisions of Part IX of this behavior, the company, who is in default, officer or agent of the company, shall be punished by a fine may extend to 10,000 rupees, and in the case of a continuing offense , it may extend to ten thousand rupees for the duration of the additional daily default fine.

Registration of Charges:

Under section 600, a foreign company filings containing details of a charge within 30 days from the date of charge to create a major share registrar, and the registrar of the state, in which the main business of the company is located. This is the responsibility of property by a foreign company in India after the January 15, 1937, and costs of any foreign company after the acquisition, June 15, 1937 in India. Responsible for creating or evidencing the charge instrument or on the completion of the acquisition or copying occurs in the property outside India, a day after the 30 days, you can at the appropriate time, if the dispatch due diligence requirements have been received in India submitted within the time Registrar is responsible. Foreign companies are also obligated to provide a copy of the Trust Deed and inspection records to create any bond issue bondholders charge.

Winding Up of Foreign Companies:

Section 582 (B) clearly shows that corporate behavior, X department acts deal with non-registered company liquidator shall apply to foreign companies [1985 (58) Comparative Case 285]. , 1956, "Company Law" Article 584 which stipulates that any Indian business in India has been conducting a body corporate incorporated outside, no longer carry business in India, although it may be the body corporate has been wound up as an unregistered company dissolution or no longer exists, it was incorporated into national law or by virtue. The winding-up only through the courts. If the foreign company's operations in India are no longer carried out or gone or ultra vires its underlying business, it may be wound up, according to the fair and equitable manner.