FAQ

Pre Incorporation

The cost of setting up a Private Limited Company in India is relatively affordable. Please refer to the Company Formation section for the pricing or speak to our Japanese Guest Relation (JGR) for more information on the latest promotion available.

  1. Educated Workforce – India offers educated and productive workers. English is widely spoken as a business language; therefore, communicating locally isn’t a difficulty. activity and training are thought to be high priority in India, which has resulted in better workforce quality.
  2. Stable economy – India’s process has been exceptional in recent years. India has achieved a high macroeconomic stability ranking thanks to the robust democracy, key structural reforms, private consumption, and an increase in government investment (ranked 41 out of 141 economies) supported the world Economic Forum’s (WEF) Global Competitiveness Index.
  3. Digital competitiveness – India has become a powerhouse in terms of technology innovation. High-tech companies in sectors like telecommunications, information technology, pharmaceuticals, textiles, and engineering are equal in their sophistication and prominence to international counterparts. Indeed, India is now recognized as a serious force in global technology innovation alongside with China and also the US. 
  4. Massive consumer market – India includes an oversized and healthy people, making it an oversized consumer market. One of the world’s largest marketplace for manufactured goods and services with a rank of number 3 out of 141 economies for market size based on the WEF’s Global Competitiveness Index.
  5. Good Infrastructure and Telecommunications -well-maintained networks of highways, efficient seaport and Central International Airports.

India provides several tax and non-tax benefits to business and investors investing within the country. Local jurisdictions like states, may additionally provide tax incentives for businesses, country-wide incentives are most generally applicable. They’re broadly organized into four categories: location-based, industry-specific, export-linked, and activity-based. Here are some incentives that offered:

  1. Special Economic Zones (SEZs) or newly set-up Indian companies – Recognized under the National Startup Policy, less-developed regions; incentives for specific industries, like power, ports, highways, electronics, and software; and establishing a fresh industrial undertaking. Tax incentives also available for SEZs.
  2. For non-resident companies – within the type of presumptive taxation in areas like shipping, oil and gas services, aircraft, and power industries, among others.

India highly welcomes foreign investors to set up business in India. Among key consideration that every investor should make aware of before setting up a Company are:

  1. Is your business permissible by Indian Authorities for 100% foreign owned?
  2. What is the minimum paid up capital required for your business nature (if any)?
  3. What is the minimum paid up capital for a foreigner able to apply for an expatriate visa/ pass in India?

At this moment, unfortunately we do not provide any market research services for businesses.

Smart City – Transforming Public Safety – Transforming Life Safe City/Public Safety could be a key pillar for any Smart City. With the combination of smart citizen-centric services with the protection and security infrastructure, the town would be ready to ensure sustainability and socio-economic growth. Safe city services include policing services, traffic management and mass transportation systems, incident response, community policing, emergency and disaster manage. 

The relevant key Smart City technologies for Safe City in India includes: 

  1. Panic buttons in public places and SoS mobile application: To trigger tuned in to police just in case of emergency situation. Panic buttons may be provided as physical buttons at key public places. SoS mobile application can trigger alerts and incident reporting with geo location to produce effective response during an emergency situation. The alerts couldn’t just be routed to the Police room but also to certain selected numbers from the phone book. 
  2. Video analytics-enabled integrated city command and operations centre: Video surveillance cameras are wont to monitor the town. Video surveillance is employed just for post investigation purpose only in most of the time. Video analytics runs on live camera feeds and automatically detects and lift alerts for public questions of safety and take action to avoid incidents. Video analytics enabled Integrated city command and operations centre can monitor emergencies and disasters to supply effective collaborative response just in case of emergency. 
  3. Helpline: 24×7 emergency helpline number to lift any events/issues/concerns to a centralised/localised call centre which is integrated with police stations, hospitals, etc. 
  4. Remote FIR centres: over and over, First Information Report (FIR)/Police complaint isn’t registered because of various reasons. Kiosks/systems to assist citizens file a primary Information Report (FIR) remotely, regardless of the situation of the jurisdiction where the offense has occurred within the city. The complainant can sign, print and scan documents virtually as a part of the requirements. 
  5. Community volunteer networks platform: Collaboration with police for local safety and security issues includes social media and mobile enabled platform for community/community groups.

Standard of living in India is reasonable. In 2019, the poverty level reduced further to about 2.7% and India does not hold the position of the state with the most important population under poverty. There is significant income inequality within India, because it is simultaneously home to a number of the world’s richest people. In addition, the standard of living in India shows large geographical disparity. For instance, there’s widespread poverty in rural areas of India, where treatment tends to be very basic or unavailable. On the alternative hand, many metropolitan cities boast world-class medical establishments, luxurious hotels, sports facilities and leisure activities quite like that of developed nations.

We have shortlisted the top 10 industries Japanese businesses that previously set up in India are manufacturing (automobiles, medical devices, textiles and garments, electrical systems, electronic systems, food processing, renewable energy etc. and many more), foreign trade and commerce, services, construction and engineering, transportation and warehousing, exclusive restaurants, banking and finance, tourism, insurance and other non-manufacturing.

Hindi is the official language in the central government in India, but English is still widely use in day-to-day business. Individual state legislatures can adopt any regional language because it is considered as official language.

There’s a projection that India will become the fastest growing Asian economy in 2021 with an estimate of 9.9% gross domestic product (GDP) growth within the approaching twelve months according to Nomura.

Once all the required documents are submitted to OCS, it takes about 5-10 working days to complete the incorporation process. 

Yes. You may incorporate private limited Company in India from your home. All the signing of documents will be done through online. However, keep in mind that you are required to have at least one (1) Indian resident director. OCS offers nominee director service for investors who do not have any local resident director. Thus, it will make it easier for you to set up your private limited company.

Yes, our Japanese Guest Relation (JGR) will update you from time to time on the status of the application.

In India, the government has developed two ways of foreign investment which are the government route and the automatic route. Investments through the government way require government approval but the investments through the automatic way don’t require any government approval.

Increasing the inflow of foreign investments within the country is usually the most aim of the government and that they take necessary reforms so as to form India attract FDI. The country which has the very best FDI in India in FY 2020 is Singapore with investments at INR 1,036 billion. The opposite countries that come below Singapore in terms of FDI in India are Mauritius, Netherlands, USA, Japan, France, United Kingdom, Cyprus, and Germany. FDI in India is within the protection of the Department for Promotion of Industry and International Trade, Ministry of Commerce & Industry.

The FDI policies through the Press Notes/Press Releases notified by the banking concern of India.

The main features of Foreign Exchange Management Act (FEMA) are:

  1. Activities like payments made to someone outside India or receipts from them, together with the deals in exchange and foreign security is restricted. It’s FEMA that offers the central government the facility to impose the restrictions.
  2. Free transactions on this account subject to reasonable restrictions which will be imposed.
  3. It restricts the transactions involving a faraway exchange or foreign security and payments from outside the country to India without general or specific permission of FEMA. The transactions should be made only through a licensed person. 
  4. Deals in interchange under this account by a certified person is additionally restricted by the Central Government, supported public interest generally.
  5. The Reserve Bank of India is empowered by this Act to subject the capital account transactions to reasonable kind of restrictions, although selling or drawing of exchange is finished through a licensed person. 
  6. Residents of India are visiting be permitted to hold out transactions in interchange, foreign security or to possess or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it had been inherited by him/her from someone living outside India.

The acts/rules/guidelines which regulate FDI in India are:

  1. Foreign Contribution (Regulation) Act, 2010.
  2. Foreign Contribution (Regulation) Rules, 2011.
  3. And other notification/orders etc. issued thereunder from time to time.
  4. FCRA, 1976 repealed after coming of FCRA, 2010.

Advantages of a Private Limited Company 

1. No Minimum Capital
No minimum capital is required to create a Private Limited Company. a Private Limited Company are often registered with a mere sum of Rs. 10,000 as total Authorized Share capital.

2. Separate Legal Entity
A Private Ltd. Company may be a separate legal identity within the court of the law, meaning assets and liabilities of the business don’t seem to be the identical because the assets and liabilities of the administrators. Both are counted as different. A Private Limited Company separates Management and Ownership and thus, managers are to blame for the company’s success and also are in command of the company’s loss.

3. Limited Liability
If the corporate undergoes financial distress thanks to whatsoever reasons, the non-public assets of members won’t be wont to pay the debts of the corporate because the liability of the person is restricted.

4. Fund Raising
A Private Ltd. in India is that the only sort of business except Public Limited Companies which will raise funds from the Venture Capitalists. 

5. Free & Easy transfer of shares
Shares of a corporation limited by shares are transferable by a shareholder at the other person. The transfer is straightforward as compared to the transfer of an interest in an exceedingly business run as a proprietary concern or a partnership. Filing and signing a share transfer form and turning in the client of the shares together with share certificate can easily transfer shares.

6. Uninterrupted existence
A Private company has a Perpetual Succession until it’s legally dissolved. Death or other departure of any member will continue to be alive, irrespective of the changes in membership if a company, being a separate legal person. ‘Perpetual Succession’ is one among the foremost important characteristics of an organization.

7. FDI Allowed
In Private Ltd., 100% Foreign Direct Investment is allowed which means any foreign entity or foreign person can directly invest in an exceedingly Private Ltd.

8. Builds Credibility
The information of the corporate are available on a public database. It improves the credibility of the corporate because it makes it easy to authenticate the details. 

Disadvantages of a non-public Ltd.

  1. Its articles Restricts the transfer ability of shares.
  2. In a non-public Ld. the quantity of shareholders with a maximum of 50.
  3. Not allowed issuance of prospectus to public.
  4. In securities market shares, cannot be quoted.
  • Minimum number of Directors is two.
  • Indian Citizen and Indian Resident is one of the requirements as a Directors of a Private Limited Company.
  • The other Director(s) may be a Foreign National.
  • Two Shareholders.
  • Artificial legal entity or natural persons can be a shareholder.

If accommodation is rented then latest electricity bill and address proof of the office. 

For Indian citizen

  1. PAN card mandatory
  2. Photo address
  3. Photos
  4. Passport, Aadhar card or driving license ID’s.

For foreign national

  1. Passport
  2. Proof of address
  3. Photos
  4. Government license or document containing name in full, photo and date of birth ID
  5. Documents must be certified by the Indian Consular or consulate

Procedures:

  1. It requires 2 minimum shareholders, directors.
  2. All directors have to apply for DIN (Director’s Identification No.) and digital signature certificate.
  3. In Form INC-1 application for the name of the company has to be filed.
  4. You have to draft your MOA and AOA and then a subscription to MOA has to be done by shareholder and appropriate persons.
  5. When the registrar of company approves the applicant must file form INC-7 (Application for Incorporation of Company), form DIR-12 (Particulars regarding appointment of directors, the key managerial personnel and any changes in them) and form INC-22 (Notice of location or change of address of the registered office of the company) together with MOA and AOA
  6. Pay ROC online fees and stamp duty as per the authorized capital of the company.
  7. The registrar verifies all the documents and Form INC-22 and DIR-12 are approved and INC-7 is verified.
  8. When the registrar is satisfied with the documents certificate of incorporation is sent.
  9. Apply for PAN card and for the opening bank account of the company
  10. Capital documents have to be submitted for FDI compliance after subscription of share. 

Yes, it should be in English and in case the document is in some other foreign language, it should be translated.

All of the documents are supposed to filled/submitted online on www.mca.gov.in , no physical document(s) required / to be submitted.

  1. Contact our Japanese Guest Relation team at HIS Co Ltd. 
  2. We will define on your business nature and activities to match your objective in India.
  3. Decide your shareholding structure with minimum one Shareholder.
  4. Decide the key positions of Directors with minimum one Director.
  5. Fill in our Incorporation Form and provide the required documents.
  6. Sign our Client Service Agreement and make payment.

Company Formation

Once all the required documents are submitted to OCS, it takes about 5-10 working days to complete the incorporation process. 

Yes. You may incorporate private limited Company in India from your home. All the signing of documents will be done through online. However, keep in mind that you are required to have at least one (1) Indian resident director. OCS offers nominee director service for investors who do not have any local resident director. Thus, it will make it easier for you to set up your private limited company.

Yes, our Japanese Guest Relation (JGR) will update you from time to time on the status of the application.

In India, the government has developed two ways of foreign investment which are the government route and the automatic route. Investments through the government way require government approval but the investments through the automatic way don’t require any government approval.

Increasing the inflow of foreign investments within the country is usually the most aim of the government and that they take necessary reforms so as to form India attract FDI. The country which has the very best FDI in India in FY 2020 is Singapore with investments at INR 1,036 billion. The opposite countries that come below Singapore in terms of FDI in India are Mauritius, Netherlands, USA, Japan, France, United Kingdom, Cyprus, and Germany. FDI in India is within the protection of the Department for Promotion of Industry and International Trade, Ministry of Commerce & Industry.

The FDI policies through the Press Notes/Press Releases notified by the banking concern of India.

The main features of Foreign Exchange Management Act (FEMA) are:

  1. Activities like payments made to someone outside India or receipts from them, together with the deals in exchange and foreign security is restricted. It’s FEMA that offers the central government the facility to impose the restrictions.
  2. Free transactions on this account subject to reasonable restrictions which will be imposed.
  3. It restricts the transactions involving a faraway exchange or foreign security and payments from outside the country to India without general or specific permission of FEMA. The transactions should be made only through a licensed person. 
  4. Deals in interchange under this account by a certified person is additionally restricted by the Central Government, supported public interest generally.
  5. The Reserve Bank of India is empowered by this Act to subject the capital account transactions to reasonable kind of restrictions, although selling or drawing of exchange is finished through a licensed person. 
  6. Residents of India are visiting be permitted to hold out transactions in interchange, foreign security or to possess or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it had been inherited by him/her from someone living outside India.

The acts/rules/guidelines which regulate FDI in India are:

  1. Foreign Contribution (Regulation) Act, 2010.
  2. Foreign Contribution (Regulation) Rules, 2011.
  3. And other notification/orders etc. issued thereunder from time to time.
  4. FCRA, 1976 repealed after coming of FCRA, 2010.

Advantages of a Private Limited Company 

1. No Minimum Capital
No minimum capital is required to create a Private Limited Company. a Private Limited Company are often registered with a mere sum of Rs. 10,000 as total Authorized Share capital.

2. Separate Legal Entity
A Private Ltd. Company may be a separate legal identity within the court of the law, meaning assets and liabilities of the business don’t seem to be the identical because the assets and liabilities of the administrators. Both are counted as different. A Private Limited Company separates Management and Ownership and thus, managers are to blame for the company’s success and also are in command of the company’s loss.

3. Limited Liability
If the corporate undergoes financial distress thanks to whatsoever reasons, the non-public assets of members won’t be wont to pay the debts of the corporate because the liability of the person is restricted.

4. Fund Raising
A Private Ltd. in India is that the only sort of business except Public Limited Companies which will raise funds from the Venture Capitalists. 

5. Free & Easy transfer of shares
Shares of a corporation limited by shares are transferable by a shareholder at the other person. The transfer is straightforward as compared to the transfer of an interest in an exceedingly business run as a proprietary concern or a partnership. Filing and signing a share transfer form and turning in the client of the shares together with share certificate can easily transfer shares.

6. Uninterrupted existence
A Private company has a Perpetual Succession until it’s legally dissolved. Death or other departure of any member will continue to be alive, irrespective of the changes in membership if a company, being a separate legal person. ‘Perpetual Succession’ is one among the foremost important characteristics of an organization.

7. FDI Allowed
In Private Ltd., 100% Foreign Direct Investment is allowed which means any foreign entity or foreign person can directly invest in an exceedingly Private Ltd.

8. Builds Credibility
The information of the corporate are available on a public database. It improves the credibility of the corporate because it makes it easy to authenticate the details. 

Disadvantages of a non-public Ltd.

  1. Its articles Restricts the transfer ability of shares.
  2. In a non-public Ld. the quantity of shareholders with a maximum of 50.
  3. Not allowed issuance of prospectus to public.
  4. In securities market shares, cannot be quoted.
  • Minimum number of Directors is two.
  • Indian Citizen and Indian Resident is one of the requirements as a Directors of a Private Limited Company.
  • The other Director(s) may be a Foreign National.
  • Two Shareholders.
  • Artificial legal entity or natural persons can be a shareholder.
  1. If accommodation is rented then latest electricity bill and address proof of the office. 

a. For Indian citizen

    1. PAN card mandatory
    2. Photo address
    3. Photos
    4. Passport, Aadhar card or driving license ID’s. 

b. For foreign national

    1. Passport 
    2. Proof of address
    3. Photos
    4. Government license or document containing name in full, photo and date of birth ID
    5. Documents must be certified by the Indian Consular or consulate 

Procedures:

  1. It requires 2 minimum shareholders, directors.
  2. All directors have to apply for DIN (Director’s Identification No.) and digital signature certificate.
  3. In Form INC-1 application for the name of the company has to be filed.
  4. You have to draft your MOA and AOA and then a subscription to MOA has to be done by shareholder and appropriate persons.
  5. When the registrar of company approves the applicant must file form INC-7 (Application for Incorporation of Company), form DIR-12 (Particulars regarding appointment of directors, the key managerial personnel and any changes in them) and form INC-22 (Notice of location or change of address of the registered office of the company) together with MOA and AOA
  6. Pay ROC online fees and stamp duty as per the authorized capital of the company.
  7. The registrar verifies all the documents and Form INC-22 and DIR-12 are approved and INC-7 is verified.
  8. When the registrar is satisfied with the documents certificate of incorporation is sent.
  9. Apply for PAN card and for the opening bank account of the company
  10. Capital documents have to be submitted for FDI compliance after subscription of share. 

Yes, it should be in English and in case the document is in some other foreign language, it should be translated.

All of the documents are supposed to filled/submitted online on www.mca.gov.in , no physical document(s) required / to be submitted.

  1. Contact our Japanese Guest Relation team at HIS Co Ltd. 
  2. We will define on your business nature and activities to match your objective in India.
  3. Decide your shareholding structure with minimum one Shareholder.
  4. Decide the key positions of Directors with minimum one Director.
  5. Fill in our Incorporation Form and provide the required documents.
  6. Sign our Client Service Agreement and make payment.

Post Company Formation

India is a large country consist of 30 states and 6 Union Territories. Each state has its own advantages. India offers economic corridor where different region has their own industry specialised within that region. Pricing for rental is higher in central location compared to other states.

As for services, if you are looking to set up business at a high traffic location, New Delhi, Chennai, Mumbai, Kolkata etc. are cities where you may set up your business.

The following are the immediate 10 steps to be taken by the corporate after registration:

WITHIN 30 DAYS

  1. Filing Verification of Registered Office (Form INC-22)

The details of permanent registered office should be filed in Verification of its Registered Office in Form INC 22 within 30 days of Company registration if the corporate was registered with a brief address while filing SPICe Form in INC-32. 

  1. Opening bank account in name of the Company

     The details and documents and initial deposit may vary from different bank.

  1. Books and Accounts of Company.

Every business is required to under tax Compliances like write-off at Source (TDS) and Advance Tax Payments from time to time. Every company has got to prepare and keep the books of account in bookkeeping system of accounting on accounting. the corporate should maintain the Books of Accounts of all receipts payments and to comply legal requirements under Companies Act and other various laws. 

  1. Appointment of First Auditors by Company

The Board of Directors of the corporate should appoint a controller who holds a legitimate certificate of practice because the First Auditor of Company within thirty days from the date of registration of the corporate.

  1. Shop and Establishment Registration

Every Business Establishments are required to get Shop and Establishment Registration under respective State Shop and Establishment Act and Rules within 30 days of registration.

  1. Professional Tax Registration – Employer & Employee

Every Company is required to get Professional Tax – Employer Registration (Enrolment Certificate) within 30 days of incorporation. 

WITHIN 60 DAYS

  1. Initial Capital infusion by Subscribers to Memorandum

The subscribers to the Memorandum of Company should bring the quantity of subscribed capital as stated within the Memorandum of Association at the time of company registration within 60 days of incorporation.

  1. Releasing of Certificate of shares to the Subscribers of MOA

Share Certificates to the subscribers to the Memorandum of Association shareholders must be done by the company within 60 days of incorporation. The Share Certificates needs to be issued within the prescribed format of Form SH-1 duly signed by a minimum of two directors of the corporate and an Authorised Signatory. Authorised signatory can be the third director, if any, or a person duly authorised by the Board of Directors during this regard. Three different signatories to the Share Certificate are a requirement.

WITHIN 180 DAYS

  1. Business commencement by Company

Declaration of Commencement of Business by Company needs to be filed with the Registrar of Companies that each subscriber to the memorandum has paid the worth of the shares. Filing by the Company of the declaration within a period of 180 days of the date of incorporation of the corporate in Form INC 20A. After filing the declaration of Commencement of Business with Registrar of Companies, Company can commence its business operation.

SPECIFIC NEED BASIS

  1. Goods and Services Tax (GST) Registration

Every business with annual turnover exceeds Rs. 40 lakhs (Service providers 20 lakhs) are required to GST Registration under Goods and Services Tax (GST) Act and Rules.

Also, there are more regulatory compliance requirements a corporation should follow under Companies Act and other various laws as could also be applicable to the character of business of Company.

In India, different bank has different requirement and documentations required. You are advice to speak to the respective bank for opening of local bank account. 

Yes, you are allowed to open a Japanese bank account in India. In India, we have Sumitomo Mitsui Banking Corporation and Mizuho Bank, that are currently have local presence in India. OCS provides additional services in assistance of opening bank account from Japan with Japanese banks.

The next step after registering with above bodies, the Company may proceed with business license application. It is essential for every business to have a valid license to start a business in iNDIA. Generally, these are license involved, namely:

  1. Udyog Aadhar Registration
  2. Food Safety and Standard Authority of India (FSSAI) License or Registration:
    • FSSAI Central License
    • FSSAI State License
    • FSSAI State Registration
  3. Import Export Code
  4. Shop and Establishment Act License
  5. Gumastha License
  6. Activity specific licenses and Approval

Please refer to our customer booklet on further details regarding the above. Before starting a business, it is better to discuss with our JGR to see and understand the legal and regulatory requirements for your business.

Generally, Companies who wants to apply for foreign expatriate visa need to go through with Immigration Department of India. The Company must be registered under the Companies Act and meet the minimum paid up requirement set based on percentage of foreign equity. For more information, please refer to our customer booklet.

Goods and Services Tax (GST) is a taxation (or consumption tax) levied in India on the provision of products and services. It’s levied at every step within the production process. The tax is split into five slabs — 0 percent, 5 percent, 12 percent, 18 percent, and 28 percent.

The corporate income-tax (CIT) is the tax paid by the domestic companies, and foreign companies on their income in India. It is prescribed by the tax act subject to the changes within the rates within the union annual budget.

Currently, the businesses with turnover up to ₹ 250 crores must pay corporate tax at 25%. Whereas the businesses with a turnover above at 250 crores should pay corporate tax at 30%.

The rate is 10% of the product value. GST is applicable on all imports into India within the style of levy of Integrated Goods and Services Tax (IGST). IGST is levied on the worth of imported goods + any custom chargeable on the products. The Indian government assesses a 1 percent customs handling fee on all imports additionally to the applied customs.

Yes, OCS provides one stop solution for tax consultation, audit and legal services.

Yes, our Japanese Relationship Manager in Japan and in India able to assist you with your needs and inquiry.