Overview

The Overseas Indian community estimated at more than 30 million is termed as the second-largest diaspora in the world. The Indian expatriates and immigrant communities represent different regions, languages, faiths, and cultures. As one of the most attractive investment destination, India comprises of large manpower base, strong macroeconomic fundamentals, and diversified natural resources. India’s vibrant investment environment is supported by a robust financial infrastructure that includes sound equity & debt markets, prudent banking regulations, guided by progressive policies.

The Indian economy attracts investments from NRIs, Foreign Nationals, and Foreign Companies due to its expanded wealth of resources. As one of the fastest growing economies in the world, India has excellent job prospects to offer and plenty of business opportunities. Foreign investment into India is rated an all-time high and is expected to evolve with regulatory reforms and an investor-friendly environment. In this context, let us analyze the process for an NRI or Foreign National or Foreign Company to set up or own a business in India.

Based on the Industry-type, the company may apply for GST registration post filling appropriate forms and payment of fees.

Digital Signature (DSC)
The proposed directors of the company must create and register Digital Signatures to sign company formation forms digitally. Digital Signatures are issued by Certifying Authorities (CAs) under the Information Technology Act, 2000. A DSC can be obtained online using Aadhaar eKYC based authentication and can be renewed after the expiry of the period of the initial issue. On successful DSC registration, DSC can be generated within 24 hours.
Director’s Identification Number (DIN)
Director Identification Number (DIN) is a unique 8-digit identification number allotted by the Central Government to existing directors of a company or intending to become a director of the company. Individual scan obtain a DIN by applying under Form – DIR 3 as per Section 153 & 154 of the Companies Act. DIN, once issued, has lifetime validity until canceled or deactivated. DIN is specific to an individual, which means the Company provisions prohibit the application for another DIN. Any director/individual who contravenes this provision is liable to pay a hefty fine or may be imprisoned for up to 6 months.
Simplified Proforma for Incorporating Company Electronically (SPICe)
SPICe (Simplified Proforma for Incorporating a Company Electronically), introduced by the Ministry of Corporate Affairs (MCA) is a groundbreaking initiative to enable speedy incorporation edged with international best practices. SPICEe has introduced a standardized format of e-Memorandum of Association (eMoA) and e-Articles of Association (eAoA) in pursuant to the Companies Act, 2013 as linked e-forms. It is a provision to apply for Company Incorporation with a pre-approved Company Name. The SPICe Form is designed to ease the process of business set-up. Individual subscribers who are foreign nationals to the Memorandum and Articles of Association will not be eligible to use the SPICe forms. They will have to follow the conventional way of incorporation by filing separate forms for different steps.

Once the Company Incorporation Certificate is issued, the newly incorporated Company may apply for the under-listed documents:

PAN and TAN
As a Company is a separate legal entity, it mandatorily has to get a PAN Card for the purpose of calculating Income tax liabilities. A Tax Deduction and Collection Account Number (TAN) number is used by companies to lessen TDS (Tax Deducted at Source) while making payments. TDS returns need to be filed quarterly after the TAN is allocated.
Incorporate Your Private Limited Company through Alankit

Incorporating a company is no more a challenging proposition. With deep industry knowledge and professional expertise, one can establish their dream company without any hassle. Our team of professional and skilled Company Secretaries and Chartered Accountants guide you from start to end by working predominantly.

Have any Question?

We're here to help. Just submit your contact details and we’ll be in touch shortly