{"id":210,"date":"2021-05-24T11:17:28","date_gmt":"2021-05-24T11:17:28","guid":{"rendered":"http:\/\/scbc.co\/blog\/?p=210"},"modified":"2024-03-12T10:04:33","modified_gmt":"2024-03-12T10:04:33","slug":"basic-details-about-setting-up-a-business-entity-in-india","status":"publish","type":"post","link":"https:\/\/scbc.co\/blog\/index.php\/basic-details-about-setting-up-a-business-entity-in-india\/","title":{"rendered":"Basic details about setting up a Business Entity in India"},"content":{"rendered":"<p><strong>Can foreign nationals and foreign organizations setup a company in India?<\/strong><br \/>\nYes, the foreign companies can setup the subsidiary companies in India with 100% shareholding. Also, foreign nationals can individually be the share holder in the company, barring few sectors like defense, media and retail.<\/p>\n<p><strong>Do I need a Indian resident to setup a company in India?<\/strong><br \/>\nYes 1 director of the company should be resident Indian. Its not necessary that he holds any shares. The shares can be help by the foreign nationals<\/p>\n<p><strong>What type of company can be registered in India by foreign nationals?<\/strong><br \/>\nA Private Limited company is the most suited and widely used structure of companies. Its most suited for all businesses like IT, trading, manufacturing, consultancy. It is not suited for banking and airline companies.<\/p>\n<p><strong>How much time does it take to setup a Indian Company and open a bank account?<\/strong><br \/>\nThe Indian company formation can be completed in 10-15 business days once the documents have been received. The bank account will take another 15 days<\/p>\n<p><strong>Do I need to visit India to setup a company?<\/strong><br \/>\nNo. It\u2019s a completely online process and you do not need to visit India.<\/p>\n<p><strong>Can I hire employees after the company Is registered in India?<\/strong><br \/>\nYes after the company is registered and the bank account is open you can start hiring employees in India<\/p>\n<p><strong>What are the tax rates in India?<\/strong><br \/>\n25% income tax has to be paid on the profits earned in India<\/p>\n<p><strong>What are the documents required for Indian company formation<\/strong><\/p>\n<ul>\n<li>Passport of all the foreign nationals<\/li>\n<li>Address proof like bank statement or mobile bill of the foreign nationals<\/li>\n<li>Certificate of registration of foreign company<\/li>\n<\/ul>\n<p>All the documents should be notarized and appostilled. The basic KYC documents of Indian nationals along with the address proof of the place where the company is proposed to be registered is required.<\/p>\n<p><strong>Bank Account opening in India<\/strong><br \/>\nThe bank account in India can be opened completely online. Banks like HSBC and others.<\/p>\n<p><strong>What are the steps to setup a business in India?<\/strong><br \/>\n<strong>Step 1<\/strong> \u2013 Applying for Name<br \/>\nThe applied name should be unique and should not resemble to existing company or existing trademark in India<\/p>\n<p><strong>Step 2<\/strong> \u2013 Preparing charter of company<br \/>\nPreparing the MOA and AOA and other forms. And uploading the relevant forms<\/p>\n<p><strong>Step 3<\/strong> \u2013 Opening bank account<br \/>\nThis is the most time-consuming step<\/p>\n<p><strong>Step 4<\/strong> \u2013 Deposit of share capital<br \/>\nOnce the bank account is opened the shareholders have to deposit the share subscription amount in the Indian bank account<\/p>\n<p><strong>Step 5<\/strong> \u2013 Commencement Certificate<br \/>\nFile the commencement certificate once the share capital is deposit and you are set.<\/p>\n<p>You may need other labor law registrations and <a href=\"https:\/\/scbc.co\/gst-registration-in-delhi\" target=\"_blank\" rel=\"noopener\"><strong>GST registration<\/strong><\/a> depending on the nature of your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can foreign nationals and foreign organizations setup a company in India? Yes, the foreign companies can setup the subsidiary companies in India with 100% shareholding. Also, foreign nationals can individually be the share holder in the company, barring few sectors like defense, media and retail. Do I need a Indian resident to setup a company &hellip; <\/p>\n","protected":false},"author":1,"featured_media":211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[101,96,97,98,99,100],"_links":{"self":[{"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/posts\/210"}],"collection":[{"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=210"}],"version-history":[{"count":2,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/posts\/210\/revisions"}],"predecessor-version":[{"id":213,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/posts\/210\/revisions\/213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/media\/211"}],"wp:attachment":[{"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scbc.co\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}