Wholly owned Subsidiary / Joint Venture

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Description

A foreign company can make investment in India through incorporation of wholly owned subsidiary in sectors wherein 100% FDI is permitted. Else, a foreign company can enter into joint venture. Investment under automatic route don’t require prior approval of Govt. of India or RBI. Where the principal business of the foreign holding company falls under the sectors where 100 percent FDI is not permissible under the automatic route then applications from such entities require prior approval of the government.

Private Limited Company

A private Ltd. company is a company which has the following characteristics:

  • shareholders’ right to transfer shares is restricted.
  • the number of shareholders is limited to 200; and
  • an invitation to the public to subscribe to any shares or debentures is prohibited.

Public Limited Company

A public company is defined as a company which is not a private company. The following conditions apply only to a public company:

  • It must have at least seven shareholders.
  • A public company is not authorized to start business upon the grant of the certificate of incorporation. In order to be eligible to commence business as a corporation, it must obtain another document called trading certificate.
  • It must publish a prospectus or file a statement in lieu of a prospectus before it can start transacting business.
  • A public company is required to have at least three directors.
  • It must hold statutory meetings and obtain government approval for the appointment of the management.

Tax: Normal as an Indian company

List of Standard Documents required :

A. For Directors

  1. Four Colour Photograph of the proposed Director
  2. PAN Card copy of the proposed Indian Directors.
  3. Identity proof* (Passport, Voter Identity Card, Driving License, Aadhaar Card)
  4. Address proof* (Bank Statement, Electricity Bill, Telephone Bill, Mobile Bill) must not be older than two months

*In case of Foreign Directors identity and Address proof to be Notarized by the Public Notary or Apostilled by the competent authority in the country it was issued.

B.  For Registered Address in India

  1. The registered document of the title of the premises of the registered office in the name of the company
  2. The notarized copy of lease/rent agreement in the name of the company along with a copy of rent paid receipt not older than one month.
  3. A No objection certificate from the owner of the premises.

C. Indian and Foreign Shareholders

  1. Identity proof (Passport, Driving License, Aadhaar Card, Card, Bank Statement, government issued form of identification containing address) to be notarised/ apostilled and attested by Indian Embassy in home country
  2. Address proof (Bank Statement, Electricity Bill, Telephone Bill, Mobile Bill)

Q.1 What is the process to have WOS / JV in India.

A. Following are the steps to have WOS /JOV in India

a. Apply for name approval

b. Acquiring Digital Signature Certificate

c. Drafting Memorandum of Association and Articles of Association

d. Signing and Filling various documents including MOA and AOA in respective E-forms with Registrar of Companies

e. Receipt of Certificate of incorporation from ROC

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