Companies incorporated or registered in India are governed by the Companies Act 1956. A Company can be registered as a Private Limited Company (minimum two share-holders and two directors) or as a Public Limited Company (minimum seven share holders and three directors).
Shareholders and Directors
- There is no need to appoint a local director or a shareholder to incorporate a company in India.
- Foreign nationals can incorporate a company in India and hold foreign equity to the extent of 100%, however this is dependent upon the sector in which the company will operate and is subject to obtaining an approval from either the Reserve Bank of India(RBI) or the Foreign Investment Promotion Board (FIPB).
Memorandum & Articles of Association
The Memorandum and Articles of Association are the primary legal documents of a company. The Memorandum contains the name of the company, authorized share capital, initial members and object clause. The Articles are a set of internal regulations that govern the day-to-day operations of the company. Both the Memorandum and Articles have to be filed with Registrar of Companies at the time of incorporation and on amendments to it thereafter. In case of a Private Limited Company at least two subscribers and in case of a Public Limited Company at least seven subscribers (shareholders) are required to sign-off the Memorandum and each of the subscriber must subscribe to at least one equity share in the company.
Shares must be expressed in a fixed amount and in Indian Rupees. "No par value" or "bearer" shares are not permitted.
Board of Directors
The Board of Directors (BOD) should hold it’s meeting every quarter and the gap between these meetings cannot be more than three months. The BOD can be held at any place in the world.
An Annual General Meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a company need not hold its first AGM until 18 months of it’s incorporation. The AGM is required to be held in the city in which the registered office of the company is located.
The names and personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed with the Registrar of Companies for public inspection upon incorporation and if there is any change thereafter.
Accounts & Auditors
Every company is required to appoint an auditor each year at its AGM. An auditor must be a qualified and a practicing Chartered Accountant and fully independent of the company. Audited accounts of the company serve as tool for various stakeholders of the company like investors, bankers, vendors, government authorities etc.
Benefits of company incorporation through us:
Our executives will spend the time it takes to ensure your Indian offshore corporate structure provides the following benefits:
- Limited liability for corporate directors;
- Minimization of international tax liabilities;
- Minimal statutory filing obligations;
- Incorporation in a politically stable jurisdiction;
- A corporate bank account with an international retail or private bank;
- Nominee shareholders and directors for confidentiality of beneficial owners;
- Low share capital requirements;
Corporate Finance Services
We help organizations in following matters:
- Preparations of Project Reports including Financial Viability of the Project.
- Assisting clients in raising finance through various instruments available in market viz. Private Placement of shares, Inter-Corporate Deposits, Terms loans, Working Capital Limits etc.
- Assistance in External Credit Borrowing (ECB) from overseas bodies and approval from Indian authorities.
Company legislation requires businesses to perform many administration tasks that take up a lot of valuable company time. The last thing you need as a business owner is to be stressed out trying to ensure that you are complying with the Companies Act regulations.
The possible threat of penalties for failing to keep up with the changing rules is too great a risk to take.
Here, we are able to relieve this burden for you. Our services include:
- General advice on company law
- Company formations
- Filing of annual returns on your behalf
- Preparation of all documentation related to minutes and resolutions
- Maintenance of statutory books
- Assistance in changes of directors, shareholders, addresses, and office details
- Bonus Issues
- Share transfers
- Registered Office Facility
Please contact us for further information on how we can help you to get back to the task of running your business.