Over the past more than 55 years, K.B. Chandna & Co. has achieved a prominent place and recognition in the competitive market as we provide credible services in Setting up Business in Delhi India, Company Formation Services, Forming of Company, Establishing Business. We follow well defined service plan and are supported by professionals holding rich industry experience. This helps our global clients an easy access to different entry options in India. These services are rendered as per the rules and regulations set up by the governing bodies. Setting up a company in India includes branch office, project office, liaison/ representative office and company formation though a joint venture or a wholly owned subsidiary. Moreover, we also emphasize on every detail while maintaining close proximity with clients regarding best legal advice.
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The following structures are available for Setting up Business in India:
- A Private Limited Company in India / Public Limited company in India. A foreign company/investor may form a Private/Public Limited company in India which could be a subsidiary of the foreign company.
- Set up a company in India as a Joint Venture with an Indian counterpart.
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To open a private company, following are the requirements:
- A minimum of two shareholders
- Minimum of two directors
- A minimum capital of Rs.1 Lakh
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Our services involve the following steps:
- Identifying & advising appropriate type of Company - Private, Public of Non Profit or setting-up a Liaison Office, Branch Office or a Project Office of a foreign company.
- Selection of available name for the proposed company as per prescribed guidelines.
- Apply for Directors Identification Number & Digital Signatures.
- Drafting of Objects and Memorandum and Articles of Association of the company.
- Stamping, certification & filing of necessary forms and obtaining approvals from the Registrar of Companies.
- Preparation and filing of Prospectus/Statement in lieu of Prospectus, if applicable.
- Obtaining Certificate of Commencement of business (in case of public limited)
Liaison Office (LO) in India
As the name suggest the Liaison office is setup by a foreign company in India to carry out Liaison activity for its business. The company cannot generate any revenue for the Indian Liaison office; It has to meet all its expenses of Indian office through remittances from the Head office. The Liaison office is not allowed to earn any income in the India.
We assist foreign companies in taking approval for forming Liaison office in India from Reserve Bank of India (RBI) and Registrar of Companies. The activities that can be carried out by a LO are as follows:
- Representing in India the parent company / group companies.
- Promoting export / import from / to India.
- Promoting technical/financial collaborations between parent/group companies and companies in India.
- Acting as a communication channel between the parent company and Indian companies.
Branch Office (BO) in India
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We assist foreign companies in taking approval for forming Branch office in India from Reserve Bank of India (RBI) and Registrar of Companies. In order to carry out business in India, any foreign company can set up a branch office under the regulatory control of the Registrar of Companies for the following purposes:
- Rendering professional or technical consultancy services.
- Export/Import of goods or promotional marketing.
- Promoting technical or financial collaborations between Indian companies and parent or overseas group company
- Rendering technical support to the products supplied by the foreign company
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Advantages enjoyed by a branch office over a representative office are as follows:
- Acquire assets such as immovable property.
- Remit its profits after paying the applicable taxes to its parent company.
- Treated as an extension of foreign company for taxation purpose.
- Eligibility criteria for establishment of BOs/LOs
Basic Criteria
| Reserve Bank route |
The principal business of the foreignentity fall under sectors where 100% FDI is permissible under the automatic route |
| Goverment route |
The principal business of the foreign
entity fall under sectors where 100% FDI is permissible under the
automatic route. These applications are considered by the RBI, in
consultation with the Government of India, Ministry of Finance
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Additional Criteria
| BO |
Profit making track record during the immediately preceding 5 financial years in the home country |
A minimum of USS100,000 or its equivalent |
| LO |
Profit making track record during the immediately preceding 3 financial years in the home country |
A minimum of USS50,000 or its equivalent |
Checklist For Company Formation
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To apply for Directors Identification Number(DIN)(Applicable for every Promoter/Director if they don't have DIN number)
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Indian Applicant
- One address proof copy (self attested)
- One PAN copy (self attested)
- One PP size photograph
- Signed copy of Affidavit on Rs. 10 Stamp paper ( draft copy of affidavit to be sent by us)
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Foreign Applicant
- One copy of address Proof ( Notarized / Consularized)
- One copy of passport ( Notarized / Consularized)
- One PP Size Photograph
- Signed Copy of Affidavit Notarized and Apostille / Consularized) (draft copy of Affidavit to be sent by us)
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Digital Signature
- Digital Signature Form - filled and signed by the applicant (Form to be sent by us)
- PP Size Photo and Signature across the photo
- One copy of address Proof ( Notarized / Consularized)
- One copy of passport ( Notarized / Consularized)
( PAN mandatory in case of Indian national)
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Name Selection and Approval
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Indian company
- Promoter names (At least two in case of Private Limited and three in case of Limited)
- Give 3 to 4 names in order of preference with a brief on the significance of the name. The sequence of the name would consist like that the first word should be a Noun and the second word should describe the nature of activity.
- Give main objects of the proposed Company (memorandum and article incorporating main objects given by applicant would be drafted by us and the subscriber sheets of memorandum and articles would be signed by all subscribers / promoters)
- Define percentage of shareholding by each subscriber/promoter
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Registered office address of proposed company in India along with address proof
- If registered office is owned by Director (not taken on lease by company) then No Objection Certificate (NOC) from director and Electricity Bill of Address in the name of Director.
- If the same is owned by any other entity/ Person (not taken on lease by company) then NOC from Owner stating that the Company is permitted to use the address as the registered office of the Company and also Electricity Bill in the name of Owner.
- If taken on Lease then Lease Deed
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Indian company with foreign nationals as promoters and subscribers
- Promoter names and their percentage of shareholding in the proposed company.
- Give 3 to 4 names in order of preference with a brief on the significance of the name. The sequence of the name would consist like that the first word should be a Noun and the second word should describe the nature of activity.
- Give main objects of the proposed Company (memorandum and article incorporating main objects given by applicant would be drafted by us and the subscriber sheets of memorandum and articles would be signed by subscribers / promoters and also it needs to be notarized/consularized by the all Foreign subscribers)
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Registered office address of proposed company in India along with address proof
- If registered office is owned by Director (not taken on lease by company) then No Objection Certificate (NOC) from director and Electricity Bill of Address in the name of Director.
- If the same is owned by any other entity/ Person (not taken on lease by company) then NOC from Owner stating that the Company is permitted to use the address as the registered office of the Company and also Electricity Bill in the name of Owner.
- If taken on Lease then Lease Deed
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Foreign subsidiary
- Promoter names and their percentage of shareholding in the proposed company.
- Board resolution on the letterhead of Foreign Holding stating that Indian subsidiary is to be formed and also authorizing the person to act on behalf of foreign holding company and it is required to be notarized / consularized. (Draft copy of Board resolution sent by us)
- Give 3 to 4 names in order of preference with a brief on the significance of the name. The sequence of the name would consist like that the first word should be a Noun and the second word should describe the nature of activity.
- Give main objects of the proposed Company (memorandum and article incorporating main objects given by applicant would be drafted by us and the subscriber sheets of memorandum and articles would be signed by subscribers / promoters and also it needs to be notarized/consularized by the all Foreign subscribers)
- Notarised and Apostille / consularized copy of MOA & AOA of Holding Company
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Registered office address of proposed company in India along with address proof
- If registered office is owned by Director (not taken on lease by company) then No Objection Certificate (NOC) from director and Electricity Bill of Address in the name of Director.
- If the same is owned by any other entity/ Person (not taken on lease by company) then NOC from Owner stating that the Company is permitted to use the address as the registered office of the Company and also Electricity Bill in the name of Owner.
- If taken on Lease then Lease Deed
