Siju and Subhash, have a running business in Australia, “GUNA CAVES” and they are desirous of branching out their operations in India. They would like to establish an Indian entity under the umbrella of the Australian entity as a wholly owned subsidiary. They are also looking to retain the same trade name and trademark for the Indian entity. How do they proceed?

India is one of the fastest growing economies in the world and one can say it is the “right time” to start a business here. It is important to do some spade work on market research and viability and understand the cost and consequences (if any) of starting a particular line of business in India.

While setting up a business, one of the key factors is to identify and understand the context of the laws of the land. In India, an NRI must be aware of the various policies of FEMA, FDI and RBI. It is also key to understand the transfer pricing and taxation perspectives before one kick starts the setting up process.

A foreign company can establish a business in India by forming a company under the Companies Act, 2013 as a wholly-owned subsidiary. There are no restrictive provisions under the Companies Act, 2013 which prohibits the appointment of any foreign nationals or NRI as a director in an Indian Company. However, the provisions state that every company must have at least one director who is a resident of India.

Siju and Subhash can establish their business “GUNA CAVES” in India with both of them becoming Directors of the Indian subsidiary. But they also need to appoint one Resident Indian Director.

In a Wholly Owned Subsidiary (Incorporated as a Private Limited Company), the Foreign Holding Company will act as a shareholder along with one Nominee shareholder to fulfill the requirements of the Companies Act, 2013.

HOW CAN WE HELP?

At Chockalingam Unnamalai & Associates, we have a dedicated vertical to support “India Entry“. Establishing a business in India is exciting, but it is key to understand the nuances of the entire process. We can help you choose the right legal entity structure and help you set up your “India entry” effectively. Our “India Entry” services include:

1. Incorporation services
2. FEMA compliances
3. RBI compliances
4. Director-related compliances
5. Copyright and Trademark related services

To make your “India Entry“, reach out to us on +91 98840 54671

Entrepreneurs – How can we help you?

“All our dreams can come true, if we have the courage to pursue them.”

Walt Disney

An Entrepreneur begins a journey with a lot of dream and aspiration. But beyond all those “think big” thoughts, the reality is that a business requires a lot of hard work and one may not notice the warnings signs early at every speed breaker he/she passes by! 

A growing business needs a trusted advisor to ease the pressure by guiding it through complexities that come its way. We understand your needs and can help you with your (cumbersome but compulsory) compliance. 

At Chockalingam Unnamalai & Associates, we have a separate vertical that caters to Business Set Up & related activities. We are here to make your life easier from day one ! 

Reach us for professional service on ROC, GST, Income Tax & TDS Compliances. Onboard us and experience certainty! 

Contact:- +91 73050 56628 / unna@onesourcevault.com 

ITR Filing – Why choose us?

SEAMLESS

Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.

SWIFT

We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.

SECURE

We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!

CA Chockalingam K
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