How to create an offshore company in India ?

Setting up an offshore company in India can be beneficial for short term and long-term business operations. India offers access to a vast English speaking talent resource that can prove vital to the requirements of any company. Provided that the company can satisfy the Place of Effective Management for business activity. Multiple foreign investments in the form of newly registered companies have been coming to India in the past decades. Numerous start-ups have also been registered as fully functional enterprises within India and offshore as well. In this article, we will cover the basics of Factory License Registration in India.

What is Place of Effective Management (PoEM)?

A Place of Effective Management (PoEM) refers to a place where crucial business decisions that influence management and commercial factors are made for a business entity. If you want to create an offshore company in India, you have to establish a PoEM in the regarding area to show your allegiance to the local trade principles. Setting up a business can be done in a few simple steps, owing to the reasonable government sanctions in India. What if you want to expand your business and establish a presence in another market?

When you want to create an offshore company as an Indian citizen, you must satisfy the local rules and regulations of that particular country. In most countries, a foreign worker requires a permanent residency or citizenship to set up business in that country. For example, in many Middle-Eastern countries like Dubai, an Indian cannot register a business unless the key shareholder is a local resident. That being said, if you want to create an offshore company abroad, you can follow a legal procedure that involves a third party to help you set up business in a few simple steps. As long as you satisfy the legal documentation process, the offshore company can be successfully registering and operated by you.

Benefits of Indian corporations

Let’s explore the key benefits of starting your company in India.

• Minimum of two shareholders: India allows corporations to have a minimum of two shareholders and more. This makes it easy for start-ups to take flight when their idea is still in the budding stage.
• Minimum capital investment: Registering offshore or local companies in India authorizes a low and affordable capital of INR 100,000, amounting to $ 1,368.52 only.
• Corporate Tax Factor: India offers reasonable corporate tax rate where Indian corporations pay a flat 25% tax rate.
• Special Economic zone status: Indian companies are spread across prime localities called Special Economic Zones which receive special tax exemptions. However, if you are a citizen of U.S.A. or a country that follow worldwide taxation policies, you must declare your income to tax department.
• IT industry growth: Indian IT industry offers great tax incentives for corporations registered in the IT sector.
• Avoid Double Taxation: Indian government allows corporations to benefit from double taxation treaties with several other countries which avoids paying twice the tax on a single income.
• English Speaking Culture: India is known for skilled professionals well-versed in the English language, available at lower labour costs compared to almost every other country.
• Significantly Low wages: Indian employees are extremely affordable for corporations owing to the low wages required to acquire quality workforce in the country.

So how can you go about and register your offshore company in India. If you are planning to start a company for your business idea, you can do it in a simple steps.

1.Incorporating your company’s locality

Depending on the business verticals and your choice of jurisdiction for business operations, you can set up a country in your local country, be it U.K., Canada, U.S.A., Dubai, New Zealand, India or any other area that compliments your business identity. Once you have a key PoEM, you can register a your business entity in offshore companies of business concern. Depending on the trade activity, logistics requirements, taxation policies and other factors of business, you can incorporate a presence in markets like Hong Kong, Middle-East, USA LLC, etc. 

If you are not sure about where to register your company’s presence contact us. Depending on the nature of your business activity we can advise you and help register your company in India or as an offshore entity from another country.

2.Deciding a name

Depending on the market dynamics of your business operations, deciding on the correct name is vital to a business registration process. If you are looking to expand upon an existing registration, you can gain a license under a particular company with a different name. If you want to be registered as a subsidiary of a larger corporation, NGO, Charitable organization, private limited company or public sector organization, you can incorporate your business identity accordingly. Depending on the nature of your business activity and market share, you can develop a suitable name for a new business. 

The option of starting a fresh company is viable for start-ups and organizations looking to penetrate a niche market. A company name is essential for the registration process owing to the legal procedures that require varying forms of documentation for any given company.

If you have any concerns with coming up with a suitable name, our experts will be happy to advice you. Contact us in case you want a free consultation.

3. Documentation procedure

Once you have a suitable name and action plan, you can begin the documentation procedure. In most cases, the registration of a company is pretty straightforward. You have to provide the due diligence documents to state the nature of your business and the concerned people.

Initial documentation process includes,

• Original copy of passport & driver’s license
• Address proof of residence
• Company details & business proposal
• Associated bank details

In case you are required to submit power consumption, affiliate documents and partnership details you can always consult an expert for more clarity on the registration process. It is always best to consult an expert who can guide you in the registration process of your new company, offshore company or renewal of existing corporations.

If you need any clarification on the documentation required for your particular type of business, contact us for a clear guidance. Pan India registration specializes in creating a company presence for new companies and existing companies that require a streamlined approach to registration.

4.Submitting an Order Form

An order form considers the information required to run your business operations in a country.

Order forms generally require details such as follows.

• Types of shares being issued. You can choose between either registered or bearer shares depending on the business entity requirements. Contact us to find out what suits your business best.
• Company director information. You will require to address the person who will be the company director. It is essential for tax and privacy purposes to appoint the right director for your company. Whether you are taking up the mantle or another professional instead, their information should be provided in the order form.
• Major shareholders of business. Depending on the business scale and activity you can nominate shareholders for your business. This could be the investors, employees or somebody you trust to maintain the privacy and legality of your business.
• Do you require a company secretary? Although many jurisdictions do not require a company Secretary for registration, in some cases you can always appoint a Secretary to oversee various aspects of the business.
• Mode of communication. A viable mode of communication must be established with the personnel in charge of your business registration process. Since a lot of confidential information is being exchanged, you can always utilize the most secure forms of communication. Encrypted emails, private conferences, documented procedures are all ways of avoiding complications and loss of confidential data.
• Banking and accounting information. Every business must have a financial infrastructure set up. For the seamless functioning of your business you must employ an official banking/accounting/virtual finance option that resonates with your business needs. If you have any doubts about making a legally viable banking association or account, feel free to Contact Pan India Registration experts for a detailed consultation. 
• Payment procedure. A small registration fees is charged depending on the nature of business and type of registration required. Contact us to assess the registration procedure of your business today.

Once you have followed up with the correct documentation and details of registration, the legal proceedings will begin. With access to the best technology and official proceedings, Pan India Registration streamlines the process to acquire your offshore/local company registration in India. You will learn more about your business and understand the functionality of corporations with a Free consultation with one of our experts.

If you found this article useful, be sure to browse through our website and identify valuable information about the registration process, taxes, GST, compliance, legality and much more. 

Pan India Registration is here to secure your business assets in a few simple steps. Registration at your fingertips.