Ushma & Associates
Doing Business in India:
Nonresidents or foreign companies doing business in India should incorporate a company/a branch/liaison office in India. To incorporate a private limited company in India, there shall be atleast two directors and two shareholders in a company. Shareholders and directors can be the same persons, but at least one of them shall be an Indian resident. The incorporation process can be done by filing applicable forms to Ministry of Corporate Affairs of India(MCA) which involves obtaining PAN, TAN, DSC, DIN, registering Memorandum of Association (MOA) and Articles of Association (AOA) etc.
Incorporating a company provide an ease of doing business in India. It increases credibility of entity and helps in getting better funding. It also act as a separate legal entity with limited liability.
There are few other models through which a business can be done in India like one person company, Limited Liability partnership, sole proprietorship etc.
If an NRI wants to start a business in India first he has to select a business model which is most suitable in his case. The whole process of starting a business in India may be little different from residents and he may needs to get his documents apostilled/notarised from his country of resident , depending on his case.