In case of the ‘Non-resident Indian’ (NRI), and Overseas Citizens of India (OCI), the Private Limited Company registration in India could be considered as the ideal kind of business that could be registered in India.
Investment on non-repatriation basis
(1) A Non-resident Indian (NRI) or an Overseas Citizen of India (OCI), including a company, a trust and a partnership firm incorporated outside India and owned and controlled by NRIs or OCIs, may purchase/ contribute, as the case may be, on non-repatriation basis the following:
(2) The investment detailed at sub-para 1 above will be deemed to be domestic investment at par with the investment made by residents
Notwithstanding anything contained in paragraph 1, an NRI or an OCI including a company, a trust and a partnership firm incorporated outside India and owned and controlled by NRIs or OCIs, shall not make any investment, under this Schedule, in capital instruments or units of a Nidhi company or a company engaged in agricultural/ plantation activities or real estate business or construction of farm houses or dealing in Transfer of Development Rights.
Explanation: Real estate business will have the same meaning as laid down in regulation.
The amount of consideration shall be paid as inward remittance from abroad through banking channels or out of funds held in NRE/ FCNR(B)/ NRO account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
An NRI or an OCI may invest, on a non-repatriation basis, by way of contribution to the capital of a firm or a proprietary concern in India provided such firm or proprietary concern is not engaged in any agricultural/ plantation activity or print media or real estate business. Explanation: Real estate business will have the same meaning as laid down in regulation 16.
The amount of consideration shall be paid as inward remittance from abroad through banking channels or out of funds held in NRE/ FCNR(B)/ NRO account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
Registration of a Private Limited company in India is complete an online process. Recently the MCA has replaced the earlier SPICe form with a new web form called SPICe+ (SPICe Plus). Hence, Incorporating a Private Limited Company is even easier now.
Now you can Incorporate a Private Limited Company, with a Single application for Name reservation, Incorporation, DIN allotment, Mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra), and Opening of Bank Account.
SPICe+ is divided in two parts
Part A: Apply for the name reservation of the company in Part A of the form Spice+. it can be used for taking the name approval of the proposed Company and also for filing Company registration in one go.
Part B: In Part B of the Form Spice+, apply for the following services.
Incorporation
DIN allotment
Mandatory issue of PAN
Mandatory issue of TAN
Mandatory issue of EPFO registration
Mandatory issue of ESIC registration
Mandatory issue of Profession Tax registration(Maharashtra)
Mandatory Opening of Bank Account for the Company and
Allotment of GSTIN (if so applied for)
You may either choose to submit Part-A to reserve a name first and then submit Part B for incorporation & other services or you can File Part A and B together at one go for incorporating a new company
Documents required for Company registration in India by Non Resident Indians (NRI)
Nationality | NRI | OCI |
Proof of Nationality | PAN Card | PAN CardPAN Card Undertaking |
Identity Proof | Passport | Passport |
Residence Proof | Electricity BillBank StatementDriving License | Electricity BillBank StatementDriving License |
Registered office Proof | Electricity billGas BillWater BillPostpaid Telephone or Mobile BillNOC from the owner of the premise | Electricity billGas BillWater BillPostpaid Telephone or Mobile BillNOC from the owner of the premise |
In Case of Signing from India | – | Business Visa or OCI Card |
In Case of Signing from outside India | All the documents need to be apostilled and notarized including MOA, AOA, Director’s Identity and Address Proof, PAN Undertaking from Appropriate Authority. | All the documents need to be apostilled and notarized including MOA, AOA, Director’s Identity and Address Proof, PAN Undertaking from Appropriate Authority. |
A company is a separate legal entity. Therefore, it needs to have its own Permanent Account Number (PAN) for the purposes of calculating Income tax liabilities. A Tax Deduction and Collection Account Number (TAN) number is used by companies that reduce TDS (Tax Deducted at Source) while making payments.
According to Companies Act 2013 there must be at least 1 Resident Director in the Board of an Indian Company. Resident director is defined as a citizen of India who has resided in India for at least 180 days in a calendar year.
There is no minimum required share capital that an NRI is required to invest in a company in India.
A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defense, space, atomic energy and sectors/activities prohibited for foreign investment.
A two-stage reporting procedure has been introduced for this purpose. On receipt of money for investment: Within 30 days of receipt of money from the foreign investor, the Indian company will report to the Regional Office of RBI under whose jurisdiction its Registered Office is located, a report containing details such as: Name and address of the foreign investors Date of receipt of funds and their rupee equivalent Name and address of the authorized dealer through whom the funds have been received, and Details of the Government approval, if any; On issue of shares to foreign investor: Within 30 days from the date of issue of shares, a report in Form FC-GPR together with the following documents should be filed with the Regional Office of RBI: Certificate from the Company Secretary of the company accepting investment from persons resident outside India certifying that: All the requirements of the Companies Act, 1956 have been complied with; Terms and conditions of the Government approval, if any, have been complied with; The company is eligible to issue shares under these Regulations; and The company has all original certificates issued by authorised dealers in India evidencing receipt of amount of consideration; Certificate from Statutory Auditors or Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.
