What is Foreign Direct Investment (FDI)?
An investment made by a company or individual in one country for business interests in another country, in the form of either establishing business operations or by acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
How to invest in India?
Person Residents Outside India can invest in India through an automatic route or through the approval route of the RBI or government, although most of the sectors are under the automatic route.
Registration of Business in India.
Persons Residents Outside India can register their business in India as an Indian Company/ Subsidiary of Foreign Body Corporate, Branch Office (BO), Liaison Office (LO) or Project office (PO).
How K2Y can assist in compliance?
Inward Remittance to be routed through banking channels.
Registration of the company is to be done, as in the case of foreign national documents should be a notary or apostille or both as the case may be. For more details refer to our other blog Incorporation.
Details of the amount receipt shall be reported to the Regional Office of the RBI through an Authorised Dealer (AD) Category-I Bank within 30 days from the date of remittance along with the KYC report.
Coordination with authorized dealers to quickly obtain 6-pointer KYC.
Authorised dealer shall coordinate with foreign bank to get 6-pinter KYC.
Filings on FIRM’s portal to report the FDI details to RBI.
India resident director must act as authorized signatory for this filing.
RBI will allot a Unique Identification Number (UIN)
Indian Company has to file Form FC-GPR within 30 days from the date of issue of shares including convertible securities.
Annual Return to be submitted by every Indian company which has received FDI in the previous years including the current year. The return is required to be filed by 15th July of every year.
FDI Compliances for Foreign Companies (BO/LO).
Application to be filed to the Reserve Bank of India through Authorised Dealer Category-I for the establishment of BO/ LO along with the prescribed documents.
Once the registration certificate is issued by the RBI, then the next course of registration with the Ministry of Corporate affairs with the respective Registrar of Companies.
Application for allotment of PAN card and opening of Bank Account.
Tax Aspect for Domestic Companies
The Company incorporated in India is required to pay 22% tax + surcharge + education cess as the case may be on net income earned (Turnover/ Gross Receipts less than INR 400 Crore).
Our consultancy services
The Foreign exchange team at K2Y assists businesses to deal with the most challenging aspects of projects. We can assist with the entity’s registration, the opening of a bank account, assistance for bringing funds into India, and submission and approval of FDI remittance, tax consulting, commercial registration and return filings.
Our core areas of expertise
K2Y is a world-class essential corporate service provider in India. In addition to FDI assistance, we office Indian company formation, registered office and resident director services and related post-incorporation services, including incorporations and shelf documentation and value-added post-incorporation work (VAPI), which includes foreign exchange management or foreign direct investment and setting up a current bank account, etc. K2Y enables multinational businesses to confidently and quickly establish a presence in India via our international incorporations, corporate secretarial services, accounting and tax services, and HR and payroll services.
Corporate Secretarial Compliances
File A Declaration for Commencement of Business to RoC
Regular Compliance for your business
Commercial Registration like GST, maintain regular compliances
