Macro economically a large populations and a big market without borders with generally established logistics to do business is one of the major advantages of starting a business in India. India’s young population and growing economic power promises to be a magnet for foreign companies for decades to come.

India has a comprehensive network of tax treaties. Moreover, recently Indian tax system has been modified by the Direct Taxes Code as well as the Goods and Service Tax (GST) to provide ease of doing business.

India has a well-regulated financial system which has access to developed markets all over the world and can be financed through multiple sources restricted to some rules and regulations of RBI etc.

India boasts a vast network of technical and management institutions that are of the highest international standards backed by regional and bilateral free trade agreements. In addition to that, there are numerous trading partners to trade with. These institutions develop excellent human resources.

Under the head of ‘Startup India Movement’ the government is introducing several reforms to create possibilities for getting Foreign Direct Investment (FDI) and foster business partnerships. Some initiatives have already been undertaken to alleviate the business environment from outdated policies and regulations. This reform is also aligned with parameters of World Bank’s ‘Ease of Doing Business’ index to improve India’s ranking on it.

India is well endowed with mineral and agricultural resources and it has seen a significant increase in offshore outsourcing and manufacturing over the last couple of decades, which has helped India’s economy grow at a tremendous rate. It is very interesting how foreign companies and foreign investors are benefited by doing business in India.

1. 2 – 20 directors of them 1 should be Indian resident

2. 2-200 shareholders. All the shareholders can be foreign individuals of foreign companies.

3. Address proof in India where this company will be registered

4. Passport of all foreign nationals

5. Address proof i.e bank statement or electricity bill or credit card statement of all the foreign nationals.

6. PAN, Aadhar card and bank statement of Indian nationals

7. If you are incorporating a subsidiary company then certificate of registration and address proof of the parent company.

8. Application for Name Approval

9. Application of digital signatures for all the directors

10. Preparation of charter of companies

11. Filing of incorporation documents

12. Filing FCGPR with RBI

13. Application for GST number

14. Opening of bank account

For an Indian company to Become Wholly Owned Subsidiary Company of a Foreign Company, a foreign company needs to invest 100% FDI in that Indian company through automatic route, for the purpose of foreign company registration in India.

It is important for the foreign company to elect a local partner with whom it wants to enter into a joint venture. A Memorandum of Understanding or a Letter of Intent is to be signed which will state the basis for the joint venture agreement. A thorough discussion of all the terms should be done and they must be consistent with regional as well as international law.

In this Foreign company hold shares of Indian company upto the limit of 49.99% of the total shares of the company. Starting a private limited company is the coolest and fastest way to set up in India. Foreign Direct Investment (FDI) of up to 100% into a public limited or private limited is permitted under the FDI policy.