Connecting Businesses with Opportunities in India

What are BARE MINIMUM prerequisite for "Setting up a Business in India"??

Submitted by CA Shashi Mohan on Sat, 09/22/2018 - 6:33am.

1. Naming India Business

  • Get ready with minimum 2 options of Business Name
  • Name must be unique and defining the ‘main objective clearly’
  • Get ready with ‘No Objection’ if intend to use the name of Holding Company or any Trade Mark 

2. Business Objective

  • Clear defined in appx. two Paragraphs (10-15 lines)
  • General & Multi Objective covering different business areas not allowed  

3. Number of Shareholders/Owners

  • Minimum 2 shareholders for a Private Limited
  • Can be Foreigners, NRIs, OCIs or a Foreign Company (ies)

4. Foreign Ownership

  • 100% Foreign Direct Investment, allowed in majority business segments
  • Do check if your business required prior approval from reserve bank of India

5. Initial Share Capital

  • No minimum requirement
  • Do plan for initial capital based on initial expenses, until the business reaches at Break Even Point (BEP)

6. Physical presence of Foreign owners

  • Not required for incorporation purpose
  • Will be required once in a year to present in AGM

7. Local representative

  • Not required for incorporation purpose
  • May be a business need to appoint an appropriate person

8. Resident Director

  • At least 1 Resident Director is a must
  • Any person who have stayed in India for 180 days in previous calendar year

9. Registered Office

  • An address in India (not necessarily a commercial place) required
  • Option will be there to arrange within 30 days of incorporation

10. Business Plan

  • Not required from legal side
  • Must prepare a business plan for minimum 3-5 years span (Break Even Point)
  • Local Human Resource and Working Capital must be planned well

11. Sales Staff

  • Core team must be hired based on Business Needs
  • Assistance of local HR Consultants would be helpful to find out right person

12. Administration Staff

  • Not required in beginning
  • Can be hired as a connect between Sales Team and Local Consultants

13. Local Consultant

  • Must be hired for undertaking all Non-Core/Operational Stuff
  • Attention to be given toward existing experience of similar nature assignments

14. Annual Compliance

  • Audit Report, Financial Statement etc need to be signed in paper before filing
  • All compliances required be done online / Local consultants help will be immense

15. Individual Owners Abroad

  • Personal appearance required in Annual General Meetings (AGM)
  • Failure would result in an invalid AGM, resulting into heavy penalties

 

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