Laws & Compliances for Incorporating a Company in India by an Non Resident Indian and/or a Foreign National
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Our Querist is aNon Resident Indian (NRI) living in California (USA) and had approached us for the incorporation of a Company in India. It is imperative to take note that there are numerous statutory and non-statutory compliances which a Non Resident Indian (NRI) or a Foreign National has to follow before incorporating a Company in India. The Company shall be incorporated with the Registrar of Companies (ROC) and the money has to be transferred from a foreign bank account to an Indian bank account and the same has to be well compliant to the Prevention of Money Laundering Act of 2002 and the Foreign Exchange Management Act of 1999 respectively. Further, clearances have to be obtained from the Reserve Bank of India and the detailed report with respect to the incorporation and the money transfers have to be submitted.
Further, in case of listing of the Company with any of the registered stock exchange the Company has to be well compliant to the rules framed by the Security and Exchange Board of India (SEBI) respectively.
At every single point the Company has to file their Know Your Client (KYC) forms for their Directors as and when required for and asked by the different Government Departments.
We hope that the case study would enumerate the basic pointers vis a vis the laws with respect to the incorporation of a Company in India by a Non Resident Indian (NRI) and/or a Foreign National, to our readers and increase their knowledge about the statutory compliances including that of the business laws and/or corporate laws.