ᱪᱟᱭᱱᱟ ᱨᱮᱱ ᱢᱤᱛ ᱣᱮᱫᱮᱥᱤ ᱱᱟᱜᱨᱤᱠ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱠᱚᱢᱯᱟᱱᱤ ᱪᱮᱛ ᱞᱮᱠᱟ ᱛᱮᱭ ᱮᱛᱚᱦᱚᱵ ᱟᱨ ᱨᱮᱡᱤᱥᱴᱚᱨ ᱫᱟᱲᱤᱭᱟᱜ-ᱟ

Introduction

Foreign Direct Investment (FDI) is at an all time high in India and with the kind of growth saga India has to share, investing in Indian market will prove to be very promising and beneficial for businesses worldwide including the Chinese businesses proposing to invest in India.

ᱡᱮᱞᱤᱠᱟ ᱢᱮᱱ ᱠᱟᱱᱟ ᱛᱟᱦᱮᱱᱟ, ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱪᱤᱱ ᱨᱮᱱ ᱠᱚᱢᱯᱟᱱᱤ ᱠᱩ ᱫᱟᱨᱟᱭ ᱛᱮ ᱱᱤᱣᱮᱥ ᱡᱚᱛᱚ ᱚᱠᱛᱚ ᱨᱮ ᱪᱮᱛᱟᱱ ᱚᱥᱛᱚᱨ ᱨᱮ ᱦᱩᱭᱩᱜ-ᱟ ᱟᱨ ᱱᱚᱣᱟ ᱞᱟᱹᱜᱤᱫ, ᱵᱷᱟᱨᱚᱛ ᱨᱮᱭᱟᱜ ᱠᱟᱱᱩᱱ ᱠᱩ ᱟᱨ ᱣᱤᱱᱤᱭᱢ ᱠᱩ ᱵᱟᱵᱚᱛᱮ ᱨᱮ ᱣᱤᱫᱮᱥ ᱨᱮᱱ ᱦᱚᱲᱟᱜ ᱠᱷᱚᱵᱚᱨ ᱮᱢ ᱞᱟᱹᱜᱤᱫ ᱚᱱᱟ ᱨᱮᱭᱟᱜ ᱠᱟᱱᱩᱱ ᱪᱟᱨᱪᱟ ᱞᱟᱜᱛᱤᱭᱟ.

ᱛᱚᱵᱮ, ᱱᱚᱣᱟ ᱫᱚ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱵᱤᱫᱮᱥ ᱠᱩ ᱨᱮᱱ ᱱᱤᱣᱮᱥᱚᱠ ᱟᱨ ᱠᱚᱢᱯᱟᱱᱤ ᱠᱩᱣᱟᱜ ᱧᱩᱛᱩᱢ ᱚᱞ ᱩᱪᱩ ᱵᱟᱠᱷᱨᱟ ᱨᱮ ᱵᱷᱟᱨᱚᱛ ᱨᱮᱭᱟᱜ ᱠᱟᱱᱩᱱ ᱠᱩ ᱨᱮᱭᱟᱜ ᱟᱥᱚᱞ ᱥᱤᱫᱷᱟᱸᱛ ᱫᱚ ᱮᱦᱚᱵ-ᱟ.

ᱯᱟᱦᱤᱞ ᱫᱷᱟᱯ ᱫᱚ - ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱵᱤᱡᱱᱚᱥ ᱫᱚ ᱪᱮᱫ ᱞᱮᱠᱟᱢ ᱮᱦᱚᱵᱟ

ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱵᱤᱡᱱᱚᱥ ᱵᱟᱦᱟᱹᱞ ᱨᱮᱭᱟᱜ ᱯᱟᱦᱤᱞ ᱫᱷᱟᱯ ᱫᱚ ᱱᱚᱣᱟ ᱵᱤᱰᱮᱣ ᱦᱩᱭᱩᱜ-ᱟ ᱡᱮ ᱪᱮᱫ ᱱᱚᱣᱟ ᱨᱮᱭᱟᱜ ᱚᱱᱩᱢᱟᱛᱤ ᱮᱢᱟ ᱟᱨᱵᱟᱝᱠᱷᱟᱱ ᱵᱟᱝ ᱟᱨ ᱱᱚᱣᱟ ᱫᱚ ᱟᱰᱤ ᱟᱞᱜᱟ ᱛᱮ ᱦᱩᱭ ᱫᱟᱲᱤᱭᱟᱜ-ᱟ. ᱡᱟᱦᱟᱭᱟᱜ ᱜᱮ ᱯᱟᱦᱤᱞ ᱫᱚ ᱟᱯᱱᱟᱨ ᱵᱤᱡᱱᱚᱥ ᱨᱮᱭᱟᱜ ᱯᱚᱨᱠᱚᱨᱛᱤ ᱵᱟᱰᱟᱭ ᱞᱟᱜᱛᱤᱭᱟ ᱟᱨ ᱛᱚᱵᱮ ᱵᱷᱟᱨᱚᱛ ᱨᱮᱭᱟᱜ ᱠᱟᱱᱩᱱ ᱠᱩ ᱞᱮᱠᱟ ᱛᱮ ᱱᱚᱣᱟ ᱨᱮᱭᱟᱜ ᱵᱤᱰᱮᱣ ᱢᱮ ᱡᱮ ᱱᱚᱣᱟ ᱨᱮᱭᱟᱜ ᱚᱱᱩᱢᱟᱛᱤ ᱫᱚ ᱢᱮᱱᱟᱜ-ᱟ ᱥᱮ ᱵᱟᱝ.

As per Indian laws, there are two routes by which any foreign nationals or companies can invest in India.

• Automatic route: If your business falls under this route then you do not require any approval from the Reserve Bank or Government of India for the investment. One can directly start the company registration procedure and invest the capital funds into the bank account of the company.

• Approved route: Under the approval route or government route, the foreign investor or the Indian company should obtain prior approval of the Government of India agencies or bodies specified before investing.

ᱣᱤᱫᱮᱥ ᱱᱤᱣᱮᱥᱚᱠ ᱞᱟᱹᱜᱤᱫ ᱚᱣᱮᱫᱚᱱ ᱣᱤᱫᱮᱥ ᱱᱤᱣᱮᱥ ᱯᱨᱳᱛᱥᱟᱦᱚᱱ ᱵᱳᱨᱰ (FIPB) ᱨᱮ ᱥᱩᱦᱤ ᱦᱩᱭᱩᱜ-ᱟ.

ᱟᱢᱟᱜ ᱱᱤᱣᱮᱥ ᱰᱟᱦᱟᱨ ᱵᱟᱰᱟᱭ ᱞᱟᱹᱜᱤᱫ, ᱟᱢ ᱫᱚ ᱟᱢᱟᱜ ᱵᱤᱡᱱᱚᱥ ᱵᱩᱡᱷᱮᱣ ᱟᱨ ᱫᱚᱦᱚᱲᱟ ᱛᱮ DIPP ᱨᱮᱭᱟᱜ FDI ᱯᱨᱤᱯᱛᱨᱚ ᱨᱮ ᱚᱱᱟ ᱥᱟᱨᱤ ᱦᱩᱭᱩᱜ ᱞᱟᱹᱜᱤᱫ ᱞᱟᱜᱛᱤᱭᱟ. ᱱᱚᱣᱟ ᱪᱷᱟᱲᱟ, ᱢᱤᱛ ᱫᱚᱱ ᱡᱚᱠᱷᱚᱱ ᱟᱢᱟᱜ ᱱᱤᱣᱮᱥ ᱨᱮᱭᱟᱜ ᱰᱟᱦᱟᱨ ᱜᱚᱴᱟ ᱟᱠᱟᱫᱟ, ᱛᱚᱵᱮ ᱟᱢ ᱫᱟᱨᱟᱭ ᱠᱟᱱ ᱪᱚᱨᱚᱱ ᱨᱮ ᱞᱟᱦᱟ ᱫᱟᱲᱤᱭᱟᱜ-ᱟᱢ.

Key points before Incorporating a Company in India

Once you have verified whether your business is allowed in India or not, the next step is to start registering the company. However, we recommend you to go through the following key points before starting the registration in India:

• Resident Director: To register a company in India, the company must have a resident director i.e. any one of the directors must stay in India for more than 182 days during the financial year i.e. 1^st April to 31^st March.

• Registered Office: To register a company in India, one needs an office which is declared as the registered office of the company and since you are a Chinese national, you need to take one location on rent which can be declared as the registered office of the company.

• Amount of Investment: Before registering a company in India, you must decide the amount of investment you are willing to invest in the Indian company. This is because all this information is to be entered into the company and the fees for registration of company depends on the same.

• Consultant: Choosing a right consultant is also one of the most difficult tasks because there are various professional competing with each other and hence there are many chances that you might fall into the wrong hands.

• State of Registration: India is a federal state where powers are divided between centre and state. Further, there are various states which offer various schemes to the manufacturers and where corruption is also very less and hence, offers you more satisfaction and smoothness in running the business.

• Tax rates: Any company registered in India is regarded as a domestic company and taxed at 30% and if the turnover is less than 5 Cr, then the same is taxed at 25% plus surcharge and cess.

ᱠᱚᱢᱯᱟᱱᱤ ᱨᱮᱭᱟᱜ ᱧᱩᱛᱩᱢ ᱚᱞ ᱩᱪᱩᱭᱮᱫᱟ - ᱚᱠᱟ ᱴᱟᱜ ᱥᱟᱠᱟᱢ ᱮᱢ ᱵᱟᱪᱷᱟᱣ ᱦᱩᱭᱩᱜ-ᱟ

ᱵᱷᱟᱨᱚᱛᱤᱭᱚ ᱟ ᱛᱟᱱᱩᱱ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱟᱡᱟᱜ ᱵᱮᱵᱥᱟ ᱮᱦᱚᱵ ᱞᱟᱹᱜᱤᱫ ᱵᱤᱫᱮᱥᱤ ᱱᱟᱜᱚᱨᱤᱠ ᱠᱚ ᱱᱤᱡᱮ ᱥᱤᱢᱤᱛ ᱠᱚᱢᱯᱟᱱᱤ, ᱫᱮᱥᱟᱸᱜᱤ ᱞᱤᱢᱤᱴᱮᱰ ᱠᱚᱢᱯᱟᱱᱤ, ᱪᱟᱸᱜᱟ ᱚᱯᱷᱤᱥ ᱮᱢᱟᱱ ᱞᱮᱠᱟᱱ ᱵᱷᱮᱱᱮᱜᱟᱨ ᱨᱚᱠᱮᱢ ᱨᱮᱭᱟᱜ ᱯᱷᱚᱨᱢ ᱮᱢᱚᱜ ᱟ.. ᱮᱱᱨᱮᱦᱚ, ᱡᱚᱛᱚ ᱥᱚᱸᱵᱚᱸᱫᱷ ᱯᱮᱥᱟ ᱠᱟᱹᱢᱤ ᱠᱚ ᱟᱨ ᱵᱤᱨᱚᱫᱷ ᱨᱤᱱ ᱠᱚ ᱦᱩᱥᱤᱭᱟᱨ ᱛᱮ ᱵᱤᱰᱟᱣ ᱛᱟᱭᱚᱢ ᱜᱮ ᱯᱷᱚᱨᱢ ᱨᱮᱭᱟᱜ ᱵᱟᱪᱷᱟᱣ ᱦᱚᱪᱚ ᱞᱟᱹᱠᱛᱤ.

ᱡᱟᱦᱟᱸ ᱞᱮᱠᱟ ᱨᱚᱲ ᱟᱠᱟᱱᱟ, ᱪᱤᱱ ᱨᱤᱱ ᱠᱚᱢᱯᱚᱱᱤ ᱠᱚ ᱵᱮᱜᱚᱨ ᱡᱟᱦᱟᱸᱱ ᱥᱤᱢᱟᱹ ᱛᱮ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱟᱠᱚᱣᱟᱜ ᱠᱩᱥᱤ ᱞᱮᱠᱟ ᱱᱤᱡᱮ ᱠᱮᱢᱯᱟᱱᱤ, ᱫᱮᱥᱟᱸᱜᱤ ᱞᱤᱢᱤᱴᱮᱰ ᱠᱮᱢᱯᱟᱱᱤ ᱧᱩᱛᱩᱢ ᱚᱞ ᱦᱚᱪᱚ ᱫᱟᱲᱮᱭᱟᱜ ᱟ. ᱵᱤᱫᱮᱥᱤ ᱥᱚᱡᱷᱮ ᱱᱤᱣᱮᱥ ᱚᱠᱟ ᱢᱤᱫ100% ᱦᱟᱹᱵᱤᱡ ᱱᱤᱡᱮ ᱞᱤᱢᱤᱴᱮᱰ ᱠᱚᱢᱯᱟᱱᱤ ᱟᱨ ᱵᱟᱝ ᱯᱟᱵᱞᱤᱠ ᱞᱤᱢᱮᱴᱮᱰ ᱠᱚᱢᱯᱟᱱᱤ ᱨᱮ ᱦᱩᱭᱩᱜ ᱟ, ᱚᱠᱟ ᱟᱡ ᱛᱮ ᱪᱟᱞᱟᱣ ᱦᱚᱨ ᱵᱷᱤᱛᱤᱨ ᱦᱩᱭᱩᱜ ᱟ ᱟᱨ ᱚᱱᱠᱟᱱ ᱢᱟᱢᱞᱟ ᱨᱮ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱠᱮᱸᱫᱨᱚ ᱥᱚᱨᱠᱟᱨ ᱴᱷᱮᱱ ᱠᱷᱚᱱ ᱡᱟᱦᱟᱸᱱ ᱵᱤᱥᱮᱥᱵᱟᱛᱟᱣ ᱮᱢ ᱨᱮᱭᱟᱜ ᱞᱟᱹᱠᱛᱤ ᱵᱟᱹᱱᱩᱜ ᱟ.

ᱫᱩᱥᱟᱨ, ᱡᱩᱫᱤ, ᱪᱟᱭᱱᱟ ᱵᱤᱡᱱᱚᱥ ᱠᱩ ᱡᱟᱸᱦᱟ ᱠᱚᱢᱯᱟᱱᱤ ᱵᱟᱝ ᱛᱚᱭᱨᱤ ᱥᱟᱱᱟᱭᱮᱜ ᱠᱩᱣᱟ ᱟᱨ ᱮᱠᱮᱱ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱥᱟᱠᱷᱟ ᱠᱟᱨᱭᱟᱞᱚᱭ, ᱯᱚᱨᱤᱭᱳᱡᱱᱟ ᱠᱟᱨᱭᱟᱞᱚᱭ ᱟᱨᱵᱟᱝᱠᱷᱟᱱ ᱡᱚᱜᱟᱡᱳᱜ ᱨᱮᱭᱟᱜ ᱨᱮᱡᱤᱥᱴᱚᱨ ᱥᱟᱱᱟᱭᱮᱜ ᱠᱩᱣᱟ, ᱛᱚᱵᱮ ᱱᱟᱣᱟ ᱞᱟᱹᱜᱤᱫ RBI ᱴᱮᱱ ᱯᱚᱨᱢᱟᱱᱤᱛ ᱞᱟᱜᱛᱤᱭᱟ.

ᱱᱚᱣᱟ ᱠᱩ ᱞᱮᱠᱟ ᱢᱮᱱᱟᱜ-ᱟ ᱡᱟᱦᱟᱱ ᱫᱚ ᱪᱤᱱᱤ ᱠᱚᱢᱯᱟᱱᱤ ᱠᱩ ᱟᱨᱵᱟᱝᱠᱷᱟᱬ ᱵᱤᱫᱮᱥ ᱠᱩ ᱨᱮᱱ ᱦᱚᱲ ᱠᱩ ᱫᱟᱨᱟᱭ ᱛᱮ ᱧᱩᱛᱩᱢ ᱚᱞ ᱩᱪᱩ ᱫᱟᱲᱤᱭᱟᱜ-ᱟ:

• ᱯᱨᱣᱟᱭᱣᱮᱴ ᱞᱤᱢᱤᱴᱮᱫ ᱠᱚᱢᱯᱟᱱᱤ/ ᱯᱚᱵᱞᱤᱠ ᱞᱤᱢᱤᱴᱮᱫ ᱠᱚᱢᱯᱟᱱᱤ

• ᱞᱤᱢᱤᱴᱮᱰ ᱞᱟᱭᱵᱤᱞᱤᱴᱤ ᱯᱟᱨᱴᱱᱟᱨᱥᱤᱯ (LLP)

• ᱥᱟᱠᱷᱟ ᱠᱟᱨᱭᱞᱚᱭ, ᱯᱚᱨᱤᱭᱳᱡᱱᱟ ᱠᱟᱨᱭᱟᱞᱚᱭ

• Liaison office

ᱱᱚᱣᱟ ᱪᱷᱟᱲᱟ, ᱴᱮᱴᱟ ᱟᱨ ᱥᱤᱯᱷᱹᱟᱨᱤᱥ ᱞᱮᱠᱟ ᱛᱮ, ᱥᱤᱢᱤᱛ ᱠᱚᱢᱯᱟᱱᱤ ᱠᱩ ᱵᱟᱪᱷᱟᱣ ᱨᱮᱭᱟᱜ ᱡᱚᱛᱚ ᱠᱷᱚᱱ ᱵᱮᱥ ᱵᱤᱠᱟᱞᱯ ᱠᱟᱱᱟ ᱡᱚᱠᱷᱚᱱ ᱱᱚᱣᱟ ᱵᱷᱟᱨᱚᱛ ᱨᱮ ᱵᱤᱡᱱᱚᱥ ᱮᱛᱚᱦᱚᱵ ᱞᱟᱹᱜᱤᱫ ᱠᱟᱛᱷᱟ ᱦᱟᱡᱩᱜ-ᱟ.

Company Registration procedure for Chinese nationals

The company registration procedure for foreign national is as follows:               

1. Initial requirement: In order to start a Private Limited Company in India, minimum two directors are required, wherein; one of the Directors of the Company must be an Indian Resident who has continuously stayed in India for over 182 days.

2. Documents required: The second step is to gather all the required documents which are needed for company registration. The documents required are as follows:

• Identity proof

• Address proof

ᱠᱚᱢᱯᱟᱱᱤ ᱧᱩᱛᱩᱢ ᱚᱞ ᱞᱟᱹᱜᱤᱫ ᱞᱟᱹᱠᱛᱤ ᱡᱚᱛᱚ ᱥᱚᱢᱵᱚᱸᱫᱷ ᱫᱚᱞᱤᱞ ᱨᱮᱭᱭᱟᱜ ᱱᱚᱠᱚᱞ ᱠᱚ ᱫᱤᱥᱚᱢ ᱨᱮ ᱟᱨ ᱵᱟᱝ ᱵᱷᱟᱨᱚᱛᱤᱭᱚ ᱫᱩᱛ ᱟᱣᱟᱥ ᱫᱟᱨᱟᱭ ᱛᱮ ᱫᱟᱨᱟᱭ ᱛᱮ ᱱᱚᱴᱨᱤ ᱫᱟᱨᱟᱭ ᱛᱮ ᱱᱚᱴᱨᱤ ᱦᱩᱭ ᱦᱚᱪᱚ ᱞᱟᱹᱠᱛᱤ.

3. Filing of DIN: Once the document set is ready, the next step is to file the DIN application. DIN is referred to as Director Identification Number (DIN). DIN once allotted is valid for lifetime. Further, to become a director, DIN number is mandatory in India.

4. Name approval & incorporation: Once the DIN is approved, name approval is filed and approved. Also, once the name is approved, the incorporation of a company is filed. During the incorporation procedure, all the related documents must be an apostle from the Indian embassy or local notary.

5. Invest the paid up amount: Once the company is formed, the next step is to open the company bank account. After opening the bank account, one needs to invest the amount which is being agreed at the time of incorporation. After investment, intimation must be sent to the RBI regarding the investment made.

Conclusion

ᱟᱞᱮ ᱯᱩᱨᱟ ᱠᱟᱹᱢᱤ ᱠᱚ ᱟᱹᱰᱤ ᱜᱮ ᱟᱞᱜᱟ ᱞᱮᱠᱟ ᱛᱮ ᱵᱩᱡᱷᱟᱣ ᱨᱮᱭᱟᱜ ᱠᱩᱨᱩᱢᱩᱴᱩ ᱟᱠᱟᱫ ᱟ, ᱢᱮᱱ ᱠᱷᱟᱱ ᱮᱱ ᱨᱮ ᱦᱚᱸ, ᱚᱸᱰᱮ ᱱᱚᱣᱟ ᱠᱚ ᱠᱩᱞᱤ ᱨᱮᱭᱟᱜ ᱞᱮᱠᱷᱟ ᱦᱩᱭ ᱫᱟᱲᱮᱭᱟᱜ. ᱞᱟᱦᱟ ᱥᱮᱫ, ᱱᱚᱣᱟ ᱨᱮ ᱥᱟᱹᱢᱤᱞ ᱟᱤᱱ ᱠᱚ ᱨᱮᱭᱟᱜ ᱟᱸᱴ ᱠᱟᱨᱚᱱ, ᱱᱤᱵᱮᱥ ᱦᱚᱪᱚ ᱢᱟᱲᱟᱝ ᱢᱤᱫ ᱯᱮᱥᱮᱵᱟᱨ ᱥᱟᱸᱣ ᱥᱚᱞᱟᱦ ᱦᱚᱪᱚ ᱨᱮᱭᱟᱜ ᱥᱚᱞᱟᱦ ᱮᱢᱚᱜ ᱟ.

About the Author

Build a world with words. Aruna Bhayana, law student and content writer at Hubco.in, an online platform for providing company registration, trademark registration and GST filing. Dream to earn a place from where helping public at large is facile. Reach her at aruna@hubco.in