Crucial Factors About Foreign Company Registration in India

All foreign businesses from outside should know about the foreign company registration in India

The phenomenon of globalization has helped several companies to transfer overseas, reducing trade barriers and improving economic conditions. Foreign companies can incorporate and function in India if they follow certain measures and guidelines instructed by the foreign company registration regulations. Running any kind of business in India would require the business leader to comply with various rules and regulations. Foreign company registration in India was stated in 2014 and contains the guidelines and regulations that all foreign companies that wish to operate in the company should follow. It is crucial that business leaders operating inside the country are updated about these compliance rules and prevent penalties.

India is a huge market

India’s consumer market is incredibly huge. It has a large middle-class consumer base of approximately 400 to 500 million consumers with extremely good purchasing power. This makes the Indian market quite an attractive destination for global players.

The massive availability of skilled and unskilled manpower

Basically, India has the highest number of engineers, management graduates, and other skilled and unskilled staff which are available at very competitive prices as compared to the western countries that can perform quality work at a very low cost.

Complying with the government policies and schemes

The Indian government has taken several initiatives to ease up the difficulties of doing business and attract more and more companies to set up their business in India and enhance the number of investments in India. Some of these initiatives include the Make in India Scheme, Production Line-Up Scheme, Startup Indian scheme, and several others.

Subsidiary company registration is quite popular as entity registration in India

If we compare subsidiary company registration with other forms of entity registrations, it is definitely one of the most popular forms of entity registration in India. This is mainly because it has many advantages like it possesses a minimum corporate tax as compared to other forms of company registration in India. It also has a separate legal entity and is not considered as an extended arm of a foreign entity, unlike branch offices and liaison offices. It is not considered a Permanent Establishment of its parent entity and therefore, there is no exposure of the parent company to pay taxes in India, unlike the branch office.

Feasible provisions for foreign company registration in India

Foreign company registration in India can be in the form of an incorporated entity as well as in the form of an unincorporated entity. The foreign company registration policies in India are quite flexible making it easy for foreign companies to establish their foothold and contribute to the growth and development of the country’s economy.