Incorporation, Licenses & Permits for Foreign Direct Investments (FDI) in IT and IT Enabled Services: Best FDI Attorney Advice in India

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“The first step towards commencing Foreign Direct Investment in India or FDI in India is to incorporate a company in India or register a corporation in India. The same is followed by obtaining requisite licenses and permits. Opening of a bank account in India is the next step. The entire process involves 60 days approximately and is accomplished by FDI attorney in India. The licenses and permits are mandatory in India. The requirement of an Indian resident Director is also mandatory. The registration of company name is followed by registration of logo, registration of brand and registration of trademark”

This is accomplished through three channels which are the links between FDI and international trade flows, spill-overs and other inefficiencies in the host nation business community, and direct effect on structural elements in the host economy.
The government took advantage of the opportunity to promote IT start-ups by easing regulatory requirements and providing tax breaks. It was created to assist aspiring entrepreneurs, particularly those in the process of turning their research findings into company concepts.

Documents required for Incorporation of a Company for Foreign Direct Investments (FDI) in IT and IT Enabled Services
Some documents are mandatory for a foreign company or an Indian company to invest in
India and be a subsidiary company.
1. For both Indian and foreign investors- Proof of address, if office is rented then the most recent electricity bill would also work.
2. Trademark Registration
3. Trade License
4. In case of a manufacturer, Pollution and Factory License
5. Shop Establishment license.
6. For foreign investor-
• Photograph ID proof (it should contain name, date of birth and phone number)
• Address Proof
• Passport
All these documents must be certified by the Indian Consulate or the consular.
7. For Indian investors
• Photograph ID (Driving license, Aadhar or passport)
• Address proof
• PAN card

Government License and Permits for Foreign Direct Investments (FDI) in IT and IT Enabled Services
The procedure of acquiring a license differs from one type of business to the next, depending on a variety of criteria such as the number of workers, the sector, the type of business, the location of the firm, and so on. Before starting a business or even maintaining an office in India, numerous permits are necessary. There are a few that require general tax registrations, while some just require a Shops and Establishment Registration or a trade license.

GST Registration- GST Registration is necessary for all organisations and individuals with an annual revenue of more than Rs.20 lakhs in most states and Rs.10 lakhs in Special Category States. Furthermore, regardless of turnover, anybody delivering products for intra-state supply is required to register for GST. In addition to the foregoing criteria, the GST Act contains a number of other criteria that define the requirements for GST registration. Understanding the criteria and obtaining GST registration in 30 days of beginning a firm is critical for all entrepreneurs.

Company Registration- The majority of enterprises in India are formed as sole proprietorships or partnership organisations, with no central government registration. The Ministry of Corporate Affairs oversees the formation of corporations and limited liability partnerships (LLPs). It is recommended that entrepreneurs who aim to operate a company with an annual revenue of more than Rs.20 lakhs register as an LLP or a company.

Udyog Aadhar Registration- Entrepreneurs who wish to create and run a small business – micro, small, and medium companies – can apply for this registration. The qualifying requirements for getting Udyog Aadhaar registration are based on a manufacturing concern’s investment in plant and machinery or a service provider’s investment in equipment. Once a firm has gained Udyog Aadhaar registration, it is eligible for a variety of government incentives and initiatives aimed at assisting small enterprises in India.

Export and Import Code- The DGFT Department requires everyone involved in the import or export of products or services from India to get an Import Export Code. It is necessary for a company to have a PAN and a bank account in order to receive an Import Export Code.

The Shop and Establishments Act– The Shop and Establishments Act was enacted to regulate commercial practises such as working hours, child labour, wage payment, employee safety, and general health. State governments offer Shop and Establishment Act licences or registrations, which vary by state.

Additionally, a company may be required to get permissions from the fire department, the environmental control board, or the regional healthcare system. It all relies on what kind of business you want to start. As a result, before beginning a business, consult with a professional to evaluate and comprehend the legal requirements.

All the above mentioned registrations involves the direct involvement of a corporate lawyer who should be well acquainted with the business laws of India and the corporate laws of India. The entire process of registration of company in Indian and obtaining licenses in India and permits in India is a time consuming process but can be successfully accomplished.

Conclusion
Some businesses, such as export-import and manufacturing, may need a slew of permits. Employing more than 10 people necessitate many labour and employment registrations. Such details are thoroughly investigated as part of any legal due diligence prior to making any investments. Violations of licencing regulations can result in costly legal proceedings, huge penalties, or the closure of a firm.
Authored By: Adv. Anant Sharma & Afsana Khan