Sustainable economic growth and favorable foreign investment policy have boosted the morale of foreign investors. In reality, the government of India has recently introduced a series of new tax incentives to encourage more foreign investment. In all cases, it is highly recommended that you hire a professional tax advisor or corporate lawyer to assist you with the associated procedures.
Outlook
Large cities with multiple economic benefits and facilities, such as Bombay, Delhi, Karnataka, Bangalore, Calcutta, Chennai and Hyderabad, are good options for starting a new business. If someone asks, I want to start Local Businesses near me then you should give the best suggestion. It should be noted that to date, the country hosts several American and European companies involved in different fields: information and communication technologies, trade, services, Artificial Intelligence services provider company, export, biotechnology, pharmaceutical, industry, Petro chemistry, metallurgy, textile, automobile construction, etc. Tourism is also a very promising area. If you have chosen to start your business in different countries, you should know that you will be able to benefit from tax incentives, as well as from special economic zones (SEZs). According to the sunset clause, the SEZs will also be entitled to tax exemption during the first five years of activity. Thereafter, you will be entitled to a tax reduction of 50% for the following years. The Ministry of Commerce is considering a 5-year extension plan for this clause which should expire on March 31, 2020.
Start
To invest and start a business in India, UK and other countries, you will need a work visa. A business visa will not be valid in this case because the business visa is only authorized for short stays, considered as business trips.
Register your business
You will need to decide what type of business is best suited to the nature of your business. You can choose from the following options:
- The limited company
- The limited liability companies
- The partnership
- Cooperative
- The multi-state cooperative
Then you need to register your business. You will need to register it with the Ministry of Commercial Affairs. To do this, you will need to request a Director Identification Number (DIN) from the ministry’s website. You will then have to submit the physical copy of the registration form with the identity documents (passport, identity cards, driving license), two passport-size photos and proof of address to the relevant ministry. Make sure that your identity documents and proof of address are authenticated by a notary public order to apply online, you will need a Class II digital signature certificate provided by six private agencies, approved by the Ministry of Commercial Affairs. The names will be verified by the Companies Register and, if the name was chosen is approved (per company law), it will be published on the Companies Register website within two days.
Stamp duty
Stamp duties have been mandatory since January 2010. You can do this online. You will also have to complete Forms 1, 18 and 32, enclosing the requested documents, namely the initial directors’ agreement, the memorandum and the articles of association (which you must scan). The required registration fees can be paid online with your credit card or through an approved bank. The certificate of incorporation will then be sent to you by email or by post.
Important:
The registration fees to be paid to the Companies Register vary according to the approved capital of the company (as stipulated in the memorandum).
Company registration with EPFO
You will have to submit to certain procedures under labor law. You must register the company with the labor inspection office closest to the company address. For this, you must provide a letter stating the name of the company, the names of the manager and employees, the address of the company and its activities. Fees apply based on the number of employees.
If your company has more than 20 employees, you will also need to register it with the Organization of Employee Provident Fund (EPFO). All employees eligible for social security must be registered.
Health insurance
Finally, all employees registered with EPFO are eligible for health insurance. An application form duly completed and signed by the employees must be sent by the employer to the state insurance of the employee (General). In the days that follow, the employee will receive a temporary insurance card pending the issuance of the permanent insurance card.
