Corporate Services In India

Corporate Services

Law Senate law firm being one of the leading corporate law firms of India it is providing corporate legal services for the benefit of foreign clients. India has become one of the most attractive investment destinations of the world for the purpose of manufacturing, IT enabled services, call centres, Technology sector etc., Hence many foreign companies want to make use of the low cost and big market benefit of India. Various states in India have started industrial estates and have announced various investment promotion schemes to attract foreign investors to India. In addition to that Government of India has announced various subsidies and concessions to the foreign investors who invest in India. Key sectors like manufacturing is put under automatic route of investment with 100% foreign direct investment. Hence the firm is offering the following corporate services for the benefit of the foreign companies investing in India.

Feasibility study report preparation:

The first step in exploring the possibility of investment in a foreign country is to study various factors including government schemes, strategical location for the business activity, tax structure, export import policies, availability of basic infrastructure, Government clearances, FDI check, Labour regulations, availability of market scope etc., In joint venture proposals these factors include due diligence of the JV partner also. The firm has a strong expertise in preparing the Investment feasibility study report, customised for the particular proposal. The team of the firm comprising of various experts including investment experts, taxation experts, FDI experts, Company law experts, employment law experts, Foreign exchange laws experts, arbitration experts, contract law experts etc., Hence the form is able to provide the best comprehensive services to provide a complete and accurate feasibility report to the foreign investors.

Incorporation of an Indian Company by a Foreign company in India:

A foreign company can start an Indian Company by way of a joint venture company or a 100% subsidiary company. Joint venture companies are started by foreign companies when the really require the assistance of an Indian partner in technology or marketing net work or financial contribution or any other local support to run the business effectively. When there is a limitation with regard to foreign direct investment then foreign companies must have a local partner. But unfortunately most of the joint venture companies formed in India have entered into legal problems. Hence most of the foreign companies which does not have a FDI limitation goes for a 100% subsidiary model. After such selection the company has to be incorporated as per the Companies Act. To start a new company in India the best model is a private limited company. To start a private limited company the following are the requirements:

1. A minimum of 2 share holders
2. A minimum of 2 directors ( one should be a Resident Director)
3. Digital signature of the directors
4. Registered office address
5. Application’
6. A minimum investment of 2250 USD ( no maximum limits)
7. Memorandum and Articles of Association

It takes about 2 to 6 weeks time to incorporate a company in India. Such a registered company even though it is a 100% subsidiary company it is an Indian Company and not a foreign company. Hence tax rates for an Indian company are applicable. The firm assists parties in making an internationally enforceable joint venture contracts, do incorporation of the company etc.,​

Government approvals:

The foreign investor who wishes to start a company in India requires to apply and get permissions and approvals from various department including local governments, tax authorities, statutory authorities like pollution control board, fire department, urban development etc., before starting the activity in India. Even though such approvals have become simpler than earlier, it requires applications and follow up. The firm has experience in applying, complying with the requirements and securing such permissions for foreign companies.

Reserve Bank Permission:

Reserve Bank of India is the Central Bank of India which determines the Fiscal policies of the country including foreign exchange regulations. If a foreign investor gets a permission for an investment from Reserve Bank of India then the repatriation of funds become easier, while disbursing the dividends and while exiting. Since the Foreign Investment policies of the country are consistent and also predictable the Foreign investor need not worry or anticipate any sudden change. Even while investing in automatic route it is better to inform Reserve Bank of India in advance and get their approval.