• Legal requirements for company registered in Bulgaria (EU)

Dear Madam/Sir,
I am writing to you in regard to the following question: What are the legal requirements to me as a company, incorporated and registered in Bulgaria (EU), in order to be able to sell, advertise and promote my product - a digital application - on your market and provide for legal payments through payment systems such as Paypal.
Kind Regards,
Nevena Tsacheva
Asked 4 years ago in Business Law

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17 Answers

Depending on the nature of business, there are various entry options for a foreign investor to enter into India, such as a Representative Office, Branch Office, Liaison Office, Private Limited Company, Limited Liability Company, etc. After incorporation, the company can open a bank account for the foreign equity coming into India.

To start a company in India, a minimum of two persons and an address are required in India. A company at least should have two directors and minimum of two shareholders.The law allows foreign citizens to become full-time directors or partners in the entity, but at least one of the Directors/Partners should be a resident of India. Directors of the proposed new company need to get Director Identification Number (DIN).

 

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

There is no bar or special permission require to advertise and promote foreign product In India. To sell in India, you will require, Import/Export license.

And about online payment, can enter into agreement directly with payment gateway service provider like pay pal, paytm etc.

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

Foreign company can begin processes in India by incorporating a company under the companies Act, 1956 through registration of company or establishing a branch or liaison office.

Minimum paid up capital is 1 lacs.

Monthly expenses - social security (managers and employees), accounting and attorneys --- These are decide by company management. 

3) Annual taxes on income/turnover. --- tax rate will be 25%

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

1/2. It really depends on the scale of your business operation and can vary a lot. Proper due diligence needs to be done to give you an estimation. You should consider hiring some lawyer in India for this.

3. A company, whether Indian or foreign, is liable to pay CIT under the country’s Income Tax Act, 1961. While a resident company is taxed on its worldwide income, a non-resident (foreign) company is taxed only on income that is received in India, or that arises, or is deemed to accrue in India.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

The Companies Act 2013 earlier mandated that all private limited companies will have to keep a minimum paid up capital of Rs 1 lakh. This provision meant that Rs 1 lakh worth of money had to be invested in the company by purchase of the company's shares to start business

 

2) monthly expenses would depend upon number of employees engaged by you 

 

3) legal fees would depend upon lawyer engaged by you 

 

 

 

4) govt has slashed corporate tax rate – to 22% from 30% for domestic companies – and proposed a competitive 15% rate for new investment in manufacturing

 

5) Any new domestic company incorporated on or after October 1, 2019, making fresh investment in manufacturing and initiating operations before March 31, 2023 will have the option to pay 15% tax sans any exemption or tax holiday.

 

 

Ajay Sethi
Advocate, Mumbai
94917 Answers
7570 Consultations

5.0 on 5.0

for carrying on business in India you have 3 options 

 

1) set up a liaison office 

 

2) set up a branch office 

 

3) set subsidiary company in India 

 

4) establishing private limited company in India is best option 

Ajay Sethi
Advocate, Mumbai
94917 Answers
7570 Consultations

5.0 on 5.0

There are majorly two types of entry strategies for foreign businesses in India, registration of a company or in case of establishing a branch/liaison office in India..

The first step is to register a Private Limited Company which is considered to be the easiest and fastest way of entry in India for foreign nationals and also for foreign companies.

Secondly, one can opt to register branch office, project office or liaison office which necessarily requires RBI and/or Government approval. Therefore the cost and the time which is required for the registration of a branch office, project office or liaison office is certainly higher than the time and cost attached to the incorporation of a private limited company.


Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Foreign Exchange Management Act 1999 (FEMA) Under the FDI Policy, e-commerce activities relate to the "buying and selling of goods and services over a digital and electronic network". 100% FDI is permitted in business-to-business e-commerce under the automatic route.

The new rules state that online marketplaces can no longer enter into exclusive deals for selling products on their platforms nor can they have a single vendor supply more than a quarter of the inventory. The government also restricted marketplaces from influencing prices in a bid to curb deep discounting.


Payment and Settlement Systems Act 2007 (PSSA)

Under the PSSA, anyone commencing a payment system in India must obtain prior authorisation from the Reserve Bank of India (RBI). Examples of payment systems include systems enabling payment between a payer and a beneficiary, involving clearing, payment and/or settlement services (including systems enabling credit card, debit card, smart card and/or money transfer operations), and so on.

In addition, system participants and intermediaries (such as aggregators, payment gateway service providers, e-commerce/m-commerce platform providers, and so on) must comply with certain additional security and risk mitigation protocols prescribed by the RBI for online transactions.


T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

If you do not have any further questions, you may revert at a later stage with new queries.

 

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

1.In the Indian Law, it is being depicted that there is no minimum requirement of Capital while registering a Private Limited Company, but in reality, a minimum of Rs. 1 Lakh is required as Capital to register a Private Limited Company.

2. Monthly expenses are to be decided by you which may involve and include monthly maintenance also besides salary to the employees, rent and many incidentals.

 

3. Depends on your turnover.

 

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

You shall have to set up a subsidiary in India by following Indian law to promote and sell your said product in India.

Krishna Kishore Ganguly
Advocate, Kolkata
27223 Answers
726 Consultations

5.0 on 5.0

Alternatively you can also appoint a franchisee in India for promoting and selling your product.

Krishna Kishore Ganguly
Advocate, Kolkata
27223 Answers
726 Consultations

5.0 on 5.0

1. You can set up a public ltd. company in India for which the minimum capital requirement will be Rs.5 lakhs.

 

2. The said expenses will depend on the quality or people you hire and the area where you wish to take up your office. With conservative estimate, the salary will be around Rs.50 K in total and other office expenses including the rent in not posh area might be Rs. 1.5 lakhs. 

 

3. Your amount of Income Tax to be paid will depend on the amount of the profit you will earn in India by selling your said product. 

Krishna Kishore Ganguly
Advocate, Kolkata
27223 Answers
726 Consultations

5.0 on 5.0

You need to decide which company you are interested to form. Pvt ltd, public Ltd or llp. Depending on the same requirements change. 

Taxation laws are also varied as per the form of legal entity

Prashant Nayak
Advocate, Mumbai
32061 Answers
183 Consultations

4.1 on 5.0

1. For doing business in India you have to establish an office or subsidiary company in India.

2. Minimum paid up Capital for establishing the pvt ltd company is 1 lakh.

3. Tax applicable on your company would be around 25% of the annual income.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

A subsidiary company has to be formed in India under the provisions of the companies act  2013.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

You should engage a chartered accountant who will form a company and fill in all the details as provided  by you.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

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