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With over 30 years of experience as the finest Serviced Office and Virtual Office operator, the Servcorp team is able to assist your company formation and business registration in India. Our One-Stop-Shop Service not only offers you the Best Address at Vibgyor Towers in Mumbai and Mindspace Complex in Hyderabad for your company, we also assist you in your company formation locally, efficiently and cost effectively so that you can focus on your business and develop your market in India.
Prior to starting a business in the India, there are government / local agencies you must register with to avoid any legal problems once business operations begins.
In India, one can do business by establishing one of the following types of entities:
Limited Liability Partnership
Private Limited Company
Each of the above types of entity has its own different set of compliances, which has to be undertaken.
A Liaison Office /Branch Office /Project Office can be established in 6-8 weeks
Registration and approval from Reserve Bank of India (RBI) and Registrar of Companies (RoC) are to be obtained.
A Foreign Company contemplating to establish a Liaison Office in India should have minimum net-worth of USD 50,000 and it must have a track record of profitability during the immediately preceeding three financial years in the home country.
In case of a Branch Office, the net-worth of the parent company should be at least USD 100,000 with a track record of profitability during the immediately preceeding five financial years in the home country.
A Project Office can be established without obtaining approval from RBI, provided they have secured a contract from an Indian Company to execute a project in India, if the prescribed terms and conditions laid down by the RBI of India are satisfied.
Share Capital and Shareholders for Equity Based only
A Private Limited Company can be incorporated with a minimum capital of INR 100,000 (approx. USD 1,700) and must have a minimum of 2 shareholders/subscribers.
Shareholders can be individuals and/or corporate bodies (entities). The regulations also permit beneficial shareholding wherein a shareholder may hold equity shares on behalf of another individual and/or corporate.
Minimum Directors for Equity Based only
A minimum of 2 Directors is mandatory for every Private Limited Company.
Directors can be Indian/foreign nationals. However one of the directors of the company shall have to be resident in India for a period of not less than 182 days in the previous calendar year.
Banking for Equity and Non-Equity Based
Involves extensive documentation to comply with Know Your Client (KYC) norms of the RBI.
Servcorp has established relationship with most Indian and Foreign banks and will coordinate with the bankers of your choice to seamlessly open your account.
Incorporation of a LLP
Approval of FIPB will be required to be obtained for the purpose of any form of foreign investment (whether direct or indirect) in a LLP.
An LLP, existing or new, operating in sectors/activities where 100% foreign direct investment (FDI) is allowed under the automatic route of FDI Scheme would be eligible to receive FDI.
It may be noted that a person resident outside India or an entity incorporated outside India shall be an eligible investor for the purpose of FDI in LLPs. However, this would exclude citizens and entities of Pakistan and Bangladesh, SEBI registered Foreign Institutional Investor, Foreign Venture Capital Investor, Qualified Foreign Investor or a foreign portfolio investor as per the new regulations.
Atleast 2 persons (natural or artificial) are required to form a LLP.
Every LLP is required to have atleast 2 designated partners(i.e. partner who is designated by the incorporation documents or the LLP Partnership Agreement) and atleast one of them shall be a resident in India for a period of not less than 182 days in the previous calendar year.
In case a body corporate is a partner in a LLP, then an individual who is a nominee of the body corporate shall act as the designated partners.
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Ask to be connected to the internet – How long does it take? Ask if the provider is Tier-1. Ask to be allowed to check download speeds. Ask to speak to IT support: Are they in-house or a third party? Are they even in the country? Ask to be given a phone number so you can try the service before you buy. Ask for a phone rate card. Ask to meet your dedicated receptionist. The receptionist is the front line of your business. Ask about disaster transfer. Ask if your phone extension can roam at no cost to other locations. Ask if the wireless internet is secure. Ask what kind of firewall can be set up for your network. Ask to see the transparency code of the provider. Ask if incoming callers can dial ‘1’ for voicemail to mobile. Ask if you can get free calls equal to your connection amount. Ask if your phone bill is 20% lower than telco rate.