Foreign Company

Foreign companies

In India, a foreign company is mandatory to follow certain special provisions as compared to a domestic company. E.g. a foreign company at the time of making the investment in India or setting up an office is required to comply with the Foreign Exchange Management Act (FEMA) and its guidelines. Similarly, if the foreign company is involved in selling goods or providing services then it is required to comply with the Indian tax laws.

A ‘foreign company’ is an entity that is incorporated outside India, but has a place of business in India or conducts any business activity in India in any other manner. The accurate definition of a foreign company is given under the Companies Act, 2013.

Following are the benefit of foreign company

1. After the established foreign company, all provisions would be applicable as per Indian governing laws, so major compliance related to payroll and make all required tax and statutory TDS provision.
2. Eliminating the need to pay either local employee who is working remotely.
3. After establishing a foreign company, the entity can save the traveling of their employees and its immigration problem, and visa issue.

Following are the benefit of foreign companies.

1. Cost of establishment and their termination will be added.
2. Business practice, timing and cultural barriers.
3. Cost of Compliance and their managing, an obligation rated to the employee.

Following documents required for foreign company registration in India:

1. Certified copy of the certificate of registration of the foreign company.
   2. List of directors and secretaries of foreign companies.
   3. Power of attorney and board resolution in favor of the authorized representative.
   1) Office Address proof (In case of a rented property, the latest electricity bill, Rent / Lease agreement)
   2) For Indian citizen
   4. Copay of PAN card
   5. Address proof Aadhar card. Driving license, Bank statement latest
   6. 3) For foreign national Passport mandatory for address Proof
2. All the above documents submitted must be certified by the Indian Consular or consulate