In the Era of globalization, every businessman wants to establish their business on a global level. But to do so requires a lot of effort, time, and finances. And the main question arises where to settle our business?
There are lots of options for this but to choose the best is a somewhat difficult task.
One should choose the place which in return gives them a handsome profit and where there will be business growth. Apart from this, there is some legal procedure which should be considered for business. A Business firm should get foreign business registration.
There is some procedure for foreign business registration. Let’s discuss it:
- Information submitted in registration office of directors:-
-> According to the law company within 30 days of settling in India should submit the information to the directors.
-> The company should submit the documents according to the law and approval from RBI within 30 days.
-> Any alteration needed in the documents should be corrected by filling the FC2 form and by paying its fees.
- Financial statement of company:-
-> According to schedule 3rd the company should prepare the company’s financial statement. And according to Chapter 9th check the documents required. And consolidated funds of the parent foreign company.
-> Party-related transaction as the foreign company is a subsidiary of any company. Transaction material effect, nature of the relationship, highest, and lowest values, and many other details according to clause (76) of section 2.
-> The fund transfer a of foreign company in India with any other company outside India needs to take permission from RBI. And also submit many other details. The documents should reach the registration office within 60 days at the end of the financial year.
- Place of the company:-
-> According to Act, give a list of places of foreign business And also along with a financial statement fill the form FC3 and pay fees.
- Annual return:-
-> Fill the FC4 form and pay the fees and prepare the report and submit it within 60 days to the registrar’s office.
- Registrar office:-
-> The documents which foreign companies have to submit should be in the registrar’s office in New Delhi.
GOVERNMENT PROVIDES THE LOT OF BENEFITS TO THE FOREIGN COMPANY. Here they are:-
- Tax System:- There is a good tax System opted for by the Indian government. Now, the tax System changed to GST which makes it easy to do business.
- Government policies:- The government has taken many initiatives and schemes to call foreign direct investment. The ministers make policies to attract foreigners to invest in our country.
- Trade Network:- India has a vast trade network that provides companies more benefits. As there are companies which provide the best human resource. And many companies want to trade with them.
So, at last, the foreign investment ensures the growth of the country. Now the taxation system has changed, so GST registration for foreign company is also important.