Foreign company in India !

Indian Corporate law recognises the word foreign company when a company incorporated outside India has:

• a place of business in India
  • by itself or through an agent,
  • physically or through electronic mode; and
• conducts any business activity in India in any other manner

Its clearly evident from the provisions in our law that any company incorporated outside India but has a presence in India as specified above shall be called a Foreign Company. So you cannot start something from the scratch in India and call it a foreign company, to be qualified as a foreign company as per Indian law it should have already been registered outside India and then it shall register a place of business in India with the ROC.

Procedure for registering a Place of business in India:

• Obtain approval from RBI under FEMA Regulations for the same
• Get the copy of charter, memorandum, articles of association certified to be true
• File Form FC 1 along with the prescribed attachments

Time Frame: within 30 Days of establishment of place of business in India

All such documents to be delivered, shall be delivered to the registrar having jurisdiction over New Delhi

Once registered with ROC the provisions regarding Foreign Companies and all such compliances shall be applicable to the said company,

• Books of accounts shall be maintained in India regarding Indian operations
• Financial Statements shall be prepared as per Schedule iii
• Compulsory audit by a Practicing Indian Chartered Accountant
• Prepare statement of Repatriation of profits
• File its financial statements (FC 3) and Annual Returns (FC 4)
• All documents to be filed with the ROC shall be in English Language