Foreign company registration in India is one of the most common company registrations in India, especially among small, medium, and large businesses. A Private Company is a common business form for start-ups and businesses with higher growth ambitions. A Pvt. Ltd company is one with a minimum of two and a maximum of two hundred members. It doesn’t have a minimum paid-up capital or such higher amount as may be prescribed from time to time, and a member's power to transfer his or her shares is restricted. The public is not invited to subscribe to the share capital of a private company. The word "Private Limited" must be included in the name of the Private Limited company registration.

Benefits of Foreign Company Registration in India

According to the companies Act 2013 "(42) “foreign company” means any company or body corporate incorporated outside India which—

(a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and

(b) conducts any business activity in India in any other manner."

Distinct Legal Identity 

The most significant advantage of forming a private limited company is that it is recognised as a single entity accountable for all debt payments. Any failures are the responsibility of the firm; its members are not personally liable; they are only responsible for unpaid shares. A private limited company registration creates a separate legal entity from its owners, protecting them from being sued in the event of a legal dispute.

Easy fund Raising

A private limited company registration enjoys a better option for borrowing funds. It can issue debentures secured as well as unsecured. Banks and other financial institutions also prefer giving financial assistance to large private firms.

Eligibility for foreign Company registration in India

• 2 Shareholders (Minimum)
• 2 Directors (Minimum)
• One of the Directors must be Indian
• There is no limit on Minimum Authorised share capital 
• Digital signature Certificate for 2 Promoters
• Director Identification Number (DIN) for all directors
• DSC (Digital Signature Certificate) shareholder

Documents Required For Foreign company registration procedure in India

Name approval application

Name of private limited company registration is a crucial step for new company registration. Two proposed names in order of preference, objective/purpose of business activity along with statutory fees are submitted to MCA. The proposed name should be unique and shouldn’t have punctuation marks. In case MCA has any observation, then the word comes for resubmission, which delays the whole process. Once the name is approved, it is valid for 20 days (including weekends or other holidays), and all other formalities must be completed within this period.

Application for Digital Signature Certificate

Digital Signature is an online signature used for filing documents online. Digital Signature Certificate (DSC) is required for all shareholders and directors for private limited company registration. It can be applied in parallel while applying for name approval as there is no DSC requirement in the name application. If the director or shareholder of the private limited company registration already has DSC, this step can be skipped.

Documents preparation and filing of forms for foreign company registration in India

After getting DSC and name approval, the next step is to file forms- Spice + Part, Agile Pro, Spice MOA, Spice AOA, forms with MCA. These forms consist of information regarding private limited company registration such as registered office, authorised, paid-up capital, shareholding pattern, directors, shareholders details such as an address, education qualification, etc. Some of this information is required to be supported by proof like rent/title deed of registered office, PAN card, etc.

Getting Incorporation Certificate

After submitting all the documents and getting verified by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days. This certificate of incorporation will act as a birth certificate for your company registration, and the company registration process ends here. The certificate of incorporation will consist of name, registered address, 21 digits alpha-numeric number Corporate Identity Number (CIN) approved by MCA, PAN and TAN notified on the registered companies.

Bank Account opening 

After getting the Incorporation certificate for private limited company registration, a bank account needs to be opened in the name of your company. One needs to submit an incorporation certificate, MOA, AOA, and other necessary documents required by the bank. Before the commencement of business, proposed paid-up capital must be deposited with the bank, and INC-20A needs to be filled with MCA to get the certificate of commencement.

Conclusion 

A foreign national can register a foreign company in India as a private limited company in India. Establishing a private limited company is the fastest way to set up a company in India. FDI of up to 100% into a private limited company is permitted under the FDI policy under the automatic route. A foreign national can incorporate a private limited company as a joint venture or a wholly-owned subsidiary. Online Legal India helps you throughout the registration process and make the whole thing easy and seamless.