Registering a Private Limited Company in India for Foreign Founders
Quick answer:
- Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC) for all foreign directors.
- Reserve and approve a unique company name with the Registrar of Companies (RoC).
- File incorporation documents (MoA, AoA, SPICE, INC-9) and obtain the Certificate of Incorporation (CoI).
What are the eligibility requirements for foreign directors?
Foreign directors must have a valid passport and a Director Identification Number (DIN) obtained by submitting Form DIR-3 to the Ministry of Corporate Affairs (MCA). A Digital Signature Certificate (DSC) is mandatory for signing incorporation documents electronically. Foreign directors can be Non-Resident Indians (NRIs) or Overseas Citizens of India (OCIs), or citizens of any other country. At least one director must be resident in India for 182 days in the previous financial year. The company must have a registered office address within India.
What are the typical costs involved in registration?
Government fees range from ₹500 to ₹10,000 depending on authorized capital (as of 2024). Professional fees for drafting documents, name searches, and filing services vary widely. FilingPro offers comprehensive registration packages starting at approximately ₹15,000 to ₹25,000, covering DIN/DSC assistance, name reservation, document preparation, MCA filing, and the Certificate of Incorporation. Additional costs include notarization/apostille of foreign documents and potential name reservation fees. Stamp duty on the Memorandum of Association (MoA) and Articles of Association (AoA) varies by state.
What are the post-registration compliance obligations?
The company must file Form INC-20A (declaration of commencement of business) within 180 days of incorporation. Directors must file e-form DIR-2 for appointment acceptance. The company must open a bank account using the CoI and PAN. Mandatory registrations include GST (if turnover exceeds ₹40 lakh), Professional Tax (varies by state), and Employee State Insurance (ESI) if applicable. FilingPro provides ongoing services for GST registration/filing, income tax returns, TDS filings, MCA annual returns (Form MGT-7), accounting, and Startup India registration support. Annual compliance includes filing Form MGT-7 and Form AOC-4 with the RoC.
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