|
Forming a Company in India
The Companies Act of 1956 sets down rules for the establishment of
both public and private companies. The most commonly used corporate
form is the limited company, unlimited companies being relatively
uncommon. A company is formed by registering the memorandum and
articles of association with the State Registrar of Companies of the
state in which the main office is to be located.
Foreign companies engaged in manufacturing and trading activities
abroad are permitted by the Reserve Bank of India to open branch
offices in India for the purpose of carrying on the following
activities in India:
- To represent the parent company
or other foreign companies in various matters in India, for
example, acting as buying/selling agents in India, etc.
- To conduct the research work in
which the parent company is engaged provided the results of the
research work are made available to Indian companies;
- To undertake export and import
trading activities;
- To promote possible technical
and financial collaboration between Indian companies and
overseas companies.
Application for permission to
open a branch, a project office or liason office is made via the
Reserve Bank of India by submitting form FNC-5 to the Controller,
Foreign Investment and Technology Transfer Section of the Reserve
Bank of India. For opening a project or site office, application may
be made on Form FNC-10 to the regional offices of the Reserve Bank
of India.
A foreign investor need not have a local partner, whether or not
the foreigner wants to hold full equity of the company. The portion
of the equity thus not held by the foreign invest can be offered to
then public.
Important Company Formation Resource
For United
Kingdom company
formation, Business Inc Limited provides a comprehensive range
online material including statutory forms and legal guides on all
aspects the UK Companies Act 1985 and 1989. Also offers online
company
registration and
business
credit reports and
UK
business banking. |
