Company Registration in India and Its Compliances

There are entrepreneurs across the globe, which are looking forward to make investment with its Indian business counterparts. The best way is to make the Company Registration in India and start running business. To settle down for business purpose, it is essential to make registration under Companies act 1956. The companies are categorized on the basis of business activities, liabilities, Management control, Registration and Membership. 

A company can be of Private Limited, Public Limited or can open a Branch Office. If it’s the private limited company, it is basically the non-governmental organization and maximum shareholders goes to 50 and shareholders do not have the right for share transfer.  If you are looking to register as the private limited firm, you need to apply with director’s identification number, draft memorandum, file documents with registrar and finally get the certificate of incorporation.

If you are seeking to get the status of public limited company, it must have seven shareholders and 3 directors on board. In order to get the public limited company registration in India, you firstly need to choose a name that you can register, draft articles of association, and thereby have the certificate for incorporation and commencement of business.

Foreign company can step in and open a branch office and liaison office in India. As far as branch office is concerned, it offer consultancy services, import or export goods, represent parent company, offer technical support aspects and can do the research work in order to further expand the business here in India.

By registering a company in India, there are tax exemptions and tax incentives in business operations especially to IT companies. Moreover, the skilled employees are available here at reasonable charges, which is not available abroad.

Annual general meetings are the key statutory requirements as mentioned under the Companies Act. It is regarded as the mandatory meeting for shareholders. There are three key aspects that a director must know about it and it includes during this meeting, company have to present its financial statements that can raise queries related to the investment and other concerns. Secondly, members must get the notice in writing for this annual general meeting. Lastly, this meetings needs to be considered as valid on legal background and for this, there must be the minimum number of members present in the meeting.

FDI policy is also one of the key concerns for the business that have entered or are looking to enter in business venture with Indian counterparts. India has adopted the liberal norms for FDI in India. FDI at present business scenario is permitted to all categories except Retail Trading, Gambling and betting, Tobacco, Lottery Business, Agriculture, and Atomic Energy.