• What is the base company in India for a US based company

Hello All, My name is Uma Mahesh. We have a wellness company in US and would like to open a company in India for below purposes:

1. Export herbs
2. Export finished products (oils, soaps, herbal supplements)
3. Be able to file for a 'L1' visa to bring temporary works to US to help with products (Ayurveda professionals)
4. Tax benefit purpose (India company should not become a burden, instead should be helpful)

Thank you in-advance
Asked 6 years ago in Business Law

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7 Answers

Foreign parent or holding Companies, including USA parent companies, can incorporate a subsidiary, as a 100% owned Private Limited Company in India subject to Foreign Direct Investment (FDI) Guidelines.

2) 100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route.

3) Minimum authorized capital of Indian Rupees 100000 is required to form a private company in India. There is no upper limit.

4)Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals.

5) An address in India where the registered office of the Company will be situated is required.

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

All liason work can be done....

D S Dabas
Advocate, Gurgaon
18 Answers

4.0 on 5.0

1. You shall have to open a new Company calling it a sister concern in India or open a company in India with the same name of yours in the USA having its directors/partners in India as per Indian law/Companies Act.

2. Your Indian counterpart can write to you for sponsoring and/allowing their employees/experts to visit USA and take a letter from you to that effect to get work Visa.

3. The role and contribution of the Indian company should be well defined right at the beginning to avoid any future problem. If you form a separate company, your USA Company can detach yourself from the I.Tax levied on your Indian Company and there will be several areas for adjustments.

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

Hello,

You can open a company in India with the same name to that of the company in USA, having Indian citizen as Directors. For formation of the same ID/PAN of the directors will be required and a place at which the company will be registered will be required.

while formation of the same the role of the Indian company shall be specifically mention in the MOA and AOA. Also, take note of the fact that later work vida can be given to the employees of the Indian Counterpart on your letter to the same effect.

That is the best way wherein you can get the work visa also and there is a scope for lot of tax benefit also.

Regards

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

Dear Client,

Opening a company in India is of no purpose but a branch office in India.

Name of it would be same of parent company and means to extension of business of existing company and smooth process

Cannot be involve in manufacturing and all the expenses of the BRANCH office are met by the head office.

Or

Otherwise, Incorporate New comapny.

For further assistance can contact.

Yogendra Singh Rajawat
Advocate, Jaipur
22632 Answers
31 Consultations

4.4 on 5.0

Hi, you have to register your company under the provisions mentioned in company act..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

There are a number of American companies in India which have been doing business successfully over the years.

India is also a large depository of skilled yet cheap labor. Hence, it becomes easy for the American companies to optimize their productions in India.

If you are an Indian-American with dreams to set up your own company in India, some important facets of the US tax law that you must not forget are:

Ownership by US citizens, residents or green card holders in a foreign company can attract provisions of subpart F income as well as certain reporting requirements such as Form 5471, FBAR, etc. Most entrepreneurs do not plan keeping these in mind and end up facing complications later on.

Generally, the earnings of foreign corporations are not taxed in the U.S. until the foreign corporation repatriates its earnings through the distribution of dividends. There is, however, an exception. If the foreign corporation is a Controlled Foreign Corporation (CFC), a different set of rules applies. For starters, the CFC will not automatically get exemption from taxation in the US on income earned in India.

To start a company in India, a minimum of two persons and an address in India are required. A private limited company in India must have a minimum of two directors (persons) and a minimum of two shareholders (can be persons or corporate entities). Further, the incorporation rules in India states that one of the Director of the Company must be both an Indian Citizen and Indian Resident (any person who has lived in India for over 186 days is considered an Indian Resident).

The preferred legal entity structure for foreign companies is to establish a company with three Directors, two being foreign nationals from the parent company and one director being a local Indian citizen. Since, there are no requirements for minimum shareholding with the Indian Director, 100% of the shares of the Indian Company can be held by foreign nationals or entities.

An address in India is required to serve as the registered office of the Company. The city in which the registered office address of the company will be setup will also determine the legal jurisdiction applicable for the company. Most foreign companies setup their registered offices in major metros of India like Delhi, Mumbai, Bangalore, Hyderabad, Chennai, etc.,

Post registration of the company in India, the Indian Director can help open a bank account for the company in India. Once the bank account is opened, the Company must make FDI reporting to the Reserve Bank of India. The procedure for reporting FDI inflow into the company is simple and can be completed easily by a legal or accounting professional in India. Completing the FDI reporting would ensure that the business is in compliance with all regulations in India and ready to operate.

T Kalaiselvan
Advocate, Vellore
84896 Answers
2191 Consultations

5.0 on 5.0

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