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Frequently asked questions (FAQs)
Foreign company is a company or a body corporate which is Incorporated outside India & have its place of business in India and operates certain business activities in India. Click here for more details.
Any company which is Incorporated outside India (i.e. Foreign Company) & is willing to do business in India, can run business in India through following modes –
- As Indian Company
- As Foreign Company
Following laws regulate and manage the Foreign Company in India –
- Address Proof of the Registered Office
- PAN Card / Passport
- Address Proof of the applicant
- Identity proof
- Joint Venture Contract (If applicable)
- Shares holding details
- Non-Compete from Board of Directors
- MOA & AOA
- Incorporation Certificate
- eForm FC-1
- eForm FC-2
- eForm FC-3
- eForm FC-4
- Boost Economy
- Use of Abundant resources
- Enhances the Employment Rate
- Availment of various schemes & policies
- Improvement of Export Rate
- Development of Human Resource.
Liaison Office is an office of the foreign company situated in India and it act as a channel of communication between the head office of the Foreign Company and the business in India. Click here to read more.
FEMA, 1999 has prescribed two routes for establishing Liaison Office
- Reserve Bank Route
- Government Route
- Represents the Parent Company in India.
- Encourage and promote Export from India
- Encourage and promote Import to India
- Act as Communication channel
- Undertake Insurance Activities
- Promote the Financial Collaborations.
- The Parent Company of Liaison office must have profitable operations for last 3 years.
- The Parent Company shall have minimum net worth of US$ 50,000
Documents for Parent Company –
- Incorporation Certificate
- MOA & AOA
- All details of Directors
- All details of the shareholders
- Audited Financial Statements
- Bank Report
- Certificate of the net worth
Documents from Authorized Signatory –
- 5 Photographs (Passport Size)
- 5 Copies of the Passport
- Business Visa
- 5 Copies of the National ID Card
- Address Proof
- Board Resolution
- Power of Attorney
- Obtain DSC
- File Form FNC
- KYC Verification
- Approval of RBI
- Obtain PAN & TAN
- Register with ROC
- Allotment of CIN
- Maintain of Books of Account.
- Audit of Annual Accounts.
- Filing of Annual Activity Certificate.
- Filing of Audited Financial Statements.
- File the Balance Sheet and Annual Return compliances with ROC.
- Helps the Parent company to understand & explore the Business Environment.
- Conducts Market research for foreign products.
- Suitable to Set-up temporary office
- Potential vendors & customers
- Financial Collaboration
- Promotes Import / Export.
- Not require to pay any Income Tax.