{"id":23568,"date":"2021-01-06T16:57:06","date_gmt":"2021-01-06T11:27:06","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=23568"},"modified":"2021-01-06T16:57:07","modified_gmt":"2021-01-06T11:27:07","slug":"norms-to-establishment-a-foreign-company-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/","title":{"rendered":"Norms to Establishment a Foreign Company in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">India is the\nfastest-growing country and one of the fastest developing countries worldwide,\nmaking it a suitable place for investments from non-resident Indians. India is\nactually a center; performing business activities as the expense of\nmanufacturing in India is reduced, which eventually increases the Demand curve\nof a product or service.<\/p>\n\n\n\n<p>With each year\npassing, the foreign establishments are coming and performing business\nactivities in India. Now the question arises how a foreign establishment runs a\nbusiness in India. There are several options through which investment can be\nmade in India by NRIs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#What_do_you_Mean_by_Foreign_Company\" >What do you Mean by Foreign Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#As_an_Indian_Company\" >As an\nIndian Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#As_Foreign_Company\" >As Foreign Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#Is_RBI_also_Taking_Part_to_Incorporate_Business_Activities_of_Foreign_Establishment_in_India\" >Is RBI also Taking\nPart to Incorporate Business Activities of Foreign Establishment in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#How_to_Incorporate_a_Foreign_Company_in_India\" >How to Incorporate a Foreign Company in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#Statutes_Governing_the_Foreign_Company_in_India\" >Statutes Governing the Foreign Company in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#Compliance_Required_By_Foreign_Company_in_India_after_the_Incorporation\" >Compliance Required By Foreign Company in India after the Incorporation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_Mean_by_Foreign_Company\"><\/span>What do you Mean by Foreign Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>U\/s 2(42) of\nthe&nbsp;<strong>Companies Act, 2013<\/strong>, a \u201c<strong><em>foreign company<\/em><\/strong>\u201d means\nany company or body corporate established outside India which:-<\/p>\n\n\n\n<ul><li>Foreign companies shall have a place of\nperforming business activities in India&nbsp;\nby itself or through its agent, physically&nbsp; electronic mode;<\/li><li>Foreign company can conduct any business activity\nin India in any other way.<\/li><\/ul>\n\n\n\n<p>A foreign company which is aspiring of embarks and performing business activities in India, the foreign entities can enter in any of below-discussed ways:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"985\" height=\"889\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/A-foreign-company-which-is-aspiring-of-embarks-and-performing-business-activities-in-India-the-foreign-entities-can-enter-in-any-of-below-discussed-ways.png\" alt=\"Foreign Company in India\" class=\"wp-image-23569\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/A-foreign-company-which-is-aspiring-of-embarks-and-performing-business-activities-in-India-the-foreign-entities-can-enter-in-any-of-below-discussed-ways.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/A-foreign-company-which-is-aspiring-of-embarks-and-performing-business-activities-in-India-the-foreign-entities-can-enter-in-any-of-below-discussed-ways-300x271.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/A-foreign-company-which-is-aspiring-of-embarks-and-performing-business-activities-in-India-the-foreign-entities-can-enter-in-any-of-below-discussed-ways-768x693.png 768w\" sizes=\"(max-width: 985px) 100vw, 985px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"As_an_Indian_Company\"><\/span>As an\nIndian Company<strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An Indian Limited company is registered in India and the shares posses by NRIs in below stated ways.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Wholly Owned Subsidiary<\/h3>\n\n\n\n<p>For an Indian\ncompany to evolve into a Wholly Owned Subsidiary Company of a Foreign entity, a\nforeign company requires to devote its&nbsp;\n100% Foreign Direct Investment (FDI) in a particular Indian company\nthrough an automated avenue of foreign entities incorporation in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Joint Venture<\/h3>\n\n\n\n<p>It is\ninfluential for the foreign establishments to appoint a local partner with whom\nit desires to embark under the joint venture. A Memorandum of Understanding\/Letter\nof intent shall be signed, which will show the joint venture agreement&#8217;s\ngrounds<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Subsidiary Company<\/h3>\n\n\n\n<p>In this foreign establishment grasp the shares of the Indian company up to the extent of 49.99% of the total shares of the <a href=\"https:\/\/corpbiz.io\/indian-subsidiary-registration\"><strong>Indian Subsidiary company<\/strong><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"As_Foreign_Company\"><\/span>As Foreign Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The settlement as a foreign entity the Branch\/Liaison\/Project Offices in India is managed in conditions u\/s\u00a0<em><strong>6(6) of Foreign Exchange Management Act, 1999 by\u00a0Notification No. FEMA 22\/2000-RB on dated 03<\/strong><sup><strong>rd<\/strong><\/sup><strong> May 2000<\/strong>,\u00a0<\/em>can be amended from time to time if needed.<\/p>\n\n\n\n<p>A foreign\nestablishment is mandatory to incorporate under the Companies Act, 2013 to\nstart performing business activities in any of the below-stated ways:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Branch Office<\/h3>\n\n\n\n<p>A foreign establishment in India must settle a <a href=\"https:\/\/corpbiz.io\/branch-office-registration-india\"><strong>branch office<\/strong><\/a>. Foreign company must be a goal to invest on a large scale and provide shreds of evidence on profitability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Liaison Office<\/h3>\n\n\n\n<p>The <a href=\"https:\/\/corpbiz.io\/liaison-office-registration-india\"><strong>liaison office<\/strong><\/a> can be settled to perform all the activities related to liaison in India. All the expenses of the liaison office shall bear through foreign remittance from the parent company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Project Station<\/h3>\n\n\n\n<p>This office can be settled to behead projects conferred to a foreign establishment by an Indian Company. Authorization from the Reserve Bank of India may be needed to do the same. To start, India&#8217;s private limited company by the foreign establishment is the fastest way to create set up in India. FDI up to 100% public or private limited is allowed under FDI policy.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/merger-or-amalgamation-of-company-with-foreign-company\/\">Merger or Amalgamation of Company with Foreign Company: Complete Overview<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_RBI_also_Taking_Part_to_Incorporate_Business_Activities_of_Foreign_Establishment_in_India\"><\/span>Is RBI also Taking\nPart to Incorporate Business Activities of Foreign Establishment in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Reserve Bank of India governs the Foreign Direct Invest Policy.<\/li><li>Foreign-controlled and regulated entity shall be treated as \u201cForeign Banks\u201d within the cord ad arena of\u00a0<em><strong>DIPP under the press notes 2, 3 and 4 (2009 Series) read with A.P. (DIR Series) Circular No. 01 on dated 04<\/strong><sup><strong>th<\/strong><\/sup><strong> July 2013, and A.P.(DIR Series) Circular No. 44 on dated 13<\/strong><sup><strong>th<\/strong><\/sup><strong> September, 2013<\/strong><\/em><\/li><li>\u00a0Under the condition of accepting a company by a non-residents\u2018 expedient to an Indian company on a 50% capital is in the hands of non-residents and\/or \u201ccontrolled\u2019\u2019 by non-residents. <\/li><li>The term \u201ccontrol\u201d is explained in\u00a0<em>A.P. <strong>(DIR Series) Circular No. 44 dated September 13, 2013<\/strong><\/em>, as listed below:<\/li><\/ul>\n\n\n\n<p>The term \u2018<strong><em>Control<\/em><\/strong>\u2019\ndefined as the right to appoint the majority of directors or control management\nor policy decisions included the virtue of their shareholdings or the managing\nrights or agreements related to voting and shareholders.<\/p>\n\n\n\n<p>Notwithstanding,\na above said national treatment to WOS of foreign banks shall consider the\nfinancial stability. The Financial Stability downside risk may arise if the\nforeign banks, i.e., WOSs of the foreign banks along their branches together,\ncame to control and influence the domestic financial structure. To detect the\nrisk, a rule of binding restrictions mandates imposed on the further entry of\nnew WOSs of foreign banks and branches within India exceeds 20% of the capital\n&amp; reserves banking system.<\/p>\n\n\n\n<p>In such cases, there is adequate obligation of prior approval of RBI, required for capital infusion into the existing WOSs of foreign banks. In respect to the foreign banks according to the WTO commitments, licenses for new foreign banks may be denied if the maximum shares of the property in India both on and off-balance sheet of foreign banks\u2019 branches to total assets both on and off balance sheet if the balance sheet of the banking system exceeded more than 15%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Incorporate_a_Foreign_Company_in_India\"><\/span>How to Incorporate a Foreign Company in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incorporating\nforeign companies in India became quite easy after several amendments under the\nCompany Act 2013, and the government made many schemes in favor of it. If an\nNRI person wants to incorporate India&#8217;s land, firstly, he must establish a\nlegal presence in India by registering his business as a private limited\ncompany (Indian Subsidiary) or as a foreign company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documents Needed For Incorporation Of Foreign Company In India?<\/h3>\n\n\n\n<p>The document&#8217;s\nrequirement may vary on the way a foreign entity wants to run business in\nIndia. The below mentioned are the documents required to perform business\nactivities on the land of India.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Documents Needed for Wholly Owned Subsidiary Company<\/h4>\n\n\n\n<p><em><strong>The below listed are the documents needed for wholly-owned subsidiary foreign entity incorporation in India:<\/strong><\/em><\/p>\n\n\n\n<ul><li><strong>Proof of address<\/strong>&nbsp;which he wants to\nregister his company (In case of a rented property, the latest electricity bill\nof the property)<\/li><li><strong>In the case of Indian citizen<\/strong><\/li><li>PAN Card<\/li><li>Proof of address<\/li><li>ID card which posses the photograph of the\nindividual (Aadhaar Card)<\/li><li><strong>In the case of Non-Resident of India<\/strong><\/li><li>Passport<\/li><li>Proof of Address<\/li><li>ID card which posses the photograph of the\nindividual (Driving license)<\/li><li>The documents given must be declared as true by\nthe Indian Consular or consulate.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Documents Needed for Joint Venture Incorporation<\/h4>\n\n\n\n<p>Under the joint\nventure incorporation, the contractual agreement must be drafted. The below-listed\npoints must be taken care of by the parties involved.<\/p>\n\n\n\n<ul><li>There must be a Dispute Resolution agreement\nsigned by the parties before incorporation.<\/li><li>All the provisions must be applied of\nconstitution, laws, statutes, ordinance rules, treaties, interpretations\nand&nbsp;orders of courts or Governmental Authorities and all orders and\ndecrees of all courts and arbitrators<\/li><li>The parties must be holding the shares of the\ncompany.<\/li><li>There must be a provision for transferring\nshares.<\/li><li>For a transaction\nthat is carried out by the company&#8217;s&nbsp;board of directors&nbsp;to breach&nbsp;the provisions of contractual obligations.<\/li><li>There must be a\nclause of confidentiality followed by all the members of the company. <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Particulars Needed for Liaison Office or Representative Office<\/h4>\n\n\n\n<p><em><strong>Reserve Bank of India recommended the benchmark for setting up a Liaison office or Representative Office in India, which are as follows:<\/strong><\/em><\/p>\n\n\n\n<ul><li>It is important to have a profit-making record\nin the prior 3 financial years in the native nation, and the net value should\nbe more than USD 50,000.<\/li><li>If the subsidiary company does not fulfill the\naforesaid condition, a letter of aid is provided by the parent company that\nfulfills the aforementioned conditions.<\/li><li>Particular Authorization of RBI under FEMA 1999\nand Insurance Regulatory and Development Authority (IRDA) is needed.<\/li><li>A certified Dealer Category\u2013I Banks requires\nsubmitting an application to the RBI for constituting an office.<\/li><li>The office will be provided a Unique\nIdentification Number by RBI.<\/li><li>The Indian Embassy shall attest the English\nversion of the certificate or MOA\/ AOA of Incorporation and application in\nsupport.<\/li><li>The latest Audited Balance Sheet of the applied\nentity shall also be provided in the Country of Incorporation.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Particulars Needed for Project Office<\/h4>\n\n\n\n<p>If the foreign\nentity willing to establish an office in India&#8217;s land, then the foreign company\nmust be signed a contract with the Indian company to carry out India&#8217;s business\nactivities. Earlier approval from the RBI is not mandatory.<\/p>\n\n\n\n<ul><li>Funds without deviation by&nbsp; inbound indemnification from a foreign nation\n; or,<\/li><li>Funds can be given by a bilateral or\nmultilateral International financial institution; or,<\/li><li>It shall be certified from the appropriate\nauthority.<\/li><li>The foreign company in India&nbsp; must be provided a contract that has been\nsanctioned Term Loan by a bank of India or a public financial agency for the\nproject,<\/li><li>In the case, the aforesaid conditions do not\nsatisfy by the foreign entity, it can approach to the RBI for approval. <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Particulars Needed for the Branch Office<\/h4>\n\n\n\n<p>After opening\nthe Branch Office, a foreign establishment can administer business activities\nin India&#8217;s region with the prior permission of RBI.<\/p>\n\n\n\n<ul><li>The foreign company must be involved in\nproduction or trading enterprises in India.<\/li><li>Profit in immediate previous 5 financial years\nis mandatory.<\/li><li>The net value should not be less than USD\n100,000 in foreign company home country.<\/li><\/ul>\n\n\n\n<p>There are many\nchances to grow on India&#8217;s land as a foreign entity, even in the E-commerce\nsector; the government has recently allowed 100% FDI under the E-commerce\nsector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Statutes_Governing_the_Foreign_Company_in_India\"><\/span>Statutes Governing the Foreign Company in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It depends upon\nthe business entity set up that which law shall apply. The below listed are the\nstatutes engaged in governing the foreign company in India.<\/p>\n\n\n\n<ul><li>The Companies Act, 2013 provision helps the\nforeign entity to incorporate &amp; set up their business activities in India.<\/li><li>Foreign Direct Investment scheme helps foreign establishment\nrelated to their investment by the RBI.<\/li><li>Whereas the Foreign Exchange Management Act\n(FEMA), 1999 regulates India&#8217;s foreign company business activities.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance_Required_By_Foreign_Company_in_India_after_the_Incorporation\"><\/span>Compliance Required By Foreign Company in India after the Incorporation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Compliances requirement varies depending upon the nature of business the foreign entity is performing in India&#8217;s territory<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Wholly Owned Company\/ Subsidiary Company<\/h3>\n\n\n\n<ul><li>All the compliances needed under the <em><strong>Companies Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.<\/li><li>FEMA compliances by \u00a0the FEMA Act, 1999<\/li><li>Director General of Foreign Trade compliances required.<\/li><li>Annual compliances under the Goods &amp; Services Tax ACT, 2017<\/li><li>Tax filing under Income Tax Act, 1961<\/li><li>Other specific regulatory Act, regulations depending upon the entity type of company<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Joint Venture<\/h3>\n\n\n\n<ul><li>Terms upon which RBI or FIPB (Foreign Investment\nPromotion Board) authorization is provided.<\/li><li>Continuing by Terms &amp; conditions which are\nsaid under the Joint Venture.<\/li><li>Annual Compliances under GST Act 2017<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Liaison Office\/ Branch Office \/Project Office<\/h3>\n\n\n\n<ul><li>Submission of E-form FC-1 to Registrar of\nCompanies within the time limit of 30 days from initiating office in India.<\/li><li>Submission of E-form FC-3 for Annual accounts\nalong with the list of all particulars places of business in India initiated by\nforeign entity.<\/li><li>Submitting of E-form FC-4 for Annual return of a\nforeign entity.<\/li><li>Branch Offices \/ Liaison Offices shall submit\nthe activities on yearly basis.<\/li><li>&nbsp;Certificates (AAC) and Annual return on\nForeign Liabilities and Assets has been notified under FEMA 1999<\/li><li>&nbsp;Compliances on annual basis under GST Act\nshall be completed <\/li><li>Tax filing under the provisions Income Tax Act,\n1961 should be done.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Penalties for Non-Compliances by Foreign Company<\/h3>\n\n\n\n<p>It depends upon\nthe non-Compliance and its related penal provision, penalty, fine or other fees\nare levied upon the foreign company as per the provisions of laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Companies Act 2013 and recent\namendments in it have clarified the purview of the foreign entity&#8217;s definition\nto a large extent. But still, many gaps exist under the provided\ndefinition.&nbsp; <\/p>\n\n\n\n<p>In its report in the year of 2016, has noticed that the word \u2018foreign company\u2019 in the Companies Act, 2013 r\/w the definition of \u2018electric mode\u2019 could consequently be insignificant based on electronic transactions of an establishment registered outside India. The recent changes under the Companies Act will attract foreign investors to incorporate India&#8217;s foreign entity, contributing efficiently to India&#8217;s GDP growth.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/overview-indian-subsidiary-company-registration-online-in-india\/\">Indian Subsidiary Company Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is the fastest-growing country and one of the fastest developing countries worldwide, making it a suitable place for investments from non-resident Indians. India is actually a center; performing business activities as the expense of manufacturing in India is reduced, which eventually increases the Demand curve of a product or service. With each year passing, [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":23573,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1399],"acf":{"service_id":"1"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":5619,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23568"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=23568"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23568\/revisions"}],"predecessor-version":[{"id":23578,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23568\/revisions\/23578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/23573"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=23568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=23568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=23568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}