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SETTING UP BUSINESS IN INDIA BY FOREIGN COMPANIES

corporating a company under the Companies Act, 1956 through:

depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy. Details of the FDI policy, sectoral equity caps

orging strategic alliances with Indian partners.

gn investor:

Indian partner

rs

h help smoothen the process of setting up of operations

y in sectors where 100% foreign direct investment is permitted under the FDI policy.

o be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other dom
company

ugh:

nies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

the principal place of business or head office and entities in India. Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Its role is

by Reserve Bank of India (RBI).

India can set up temporary project/site offices in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot under

ctivities abroad are allowed to set up Branch Offices in India for the following purposes:

company is engaged.

etween Indian companies and parent or overseas group company.

cting as buying/selling agents in India.

nd development of software in India.

plied by the parent/ group companies.

ivities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indi

Company Formation in India
Companies Act
Companies incorporated or registered in India are governed by the Companies Act 1956.

Shareholders and Directors

A.

There is no need to appoint local director or shareholder to incorporate a company in India.

B.

Foreign nationals can incorporate company in India and hold foreign equity to the extent of 100% which is dependent upon sector in which
company will operate and is subject to approval from either Reserve Bank of India(RBI) or Foreign Investment Promotion Board (FIPB).

Memorandum & Articles of Association
The memorandum and articles are the primary legal document of a company. Memorandum contains the name of the company, authorized share
capital, initial members and object clause. Articles are a set of internal regulations that govern the day to day operations of the company. Both
memorandum and articles have to be filed with Registrar of companies at the time of incorporation or if there are any changes thereafter. At least
two subscribers (shareholder) are required in the memorandum and each of the subscriber must subscribe to at least one share in the company.

Share Capital
Shares must be expressed in a fixed amount. "No par value" or "bearer" shares are not permitted. Shares to be subscribed must be expressed in
Indian rupees.

Annual Meetings
An annual general meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a
company need not hold its first AGM until 18 months of its incorporation.

Public Filings
The names and personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed
with the Companies Registry for public inspection upon incorporation and if there is any change thereafter.

Accounts & Auditors
Every company is required to appoint an auditor each year at its AGM. An auditor must be qualified by virtue of the Institute of Chartered
Accountants of India Act 1949 and completely independent of the company. Audited accounts of the company serve as tool for various
stakeholders like creditors, bankers, investors and revenue authorities.
Benefits of company incorporation through us:
Our executives will spend the time it takes to ensure your Indian offshore corporate structure provides the following benefits:

Limited liability for corporate directors;

Minimisation of international tax liabilities;

Minimal statutory filing obligations;

Incorporation in a politically stable jurisdiction;

A corporate bank account with an international retail or private bank;

Nominee shareholders and directors for confidentiality of beneficial owners;

Low share capital requirements;

Corporate Finance Services
We help organisations in following matters:

Preparations of Project Reports including Financial Viability of the Project.

Assisting clients in raising finance through various instruments available in market viz. private placement of shares, Inter-Corporate
Deposit, Terms loans, working capital limits.

Assistance in External Credit Borrowing (ECB) from overseas bodies and approval from Indian authorities.

Corporate Matters
Company legislation requires businesses to perform many administration tasks that take up a lot of valuable company time. The last thing you need
as a business owner is to be stressed out trying to ensure you are complying with the Companies Act 1993.
The possible threat of penalties for failing to keep up with the changing rules is too great a risk to take.
Here, we are able to relieve this burden for you. Our services include:

General advice on company law

Company formations

Filing of annual returns on your behalf

Preparation of all documentation related to minutes and resolutions

Maintenance of statutory books

Assistance in changes of directors, shareholders, addresses, and office details

Bonus Issues

Share transfers

Registered Office Facility

Establishing an IT or ITES Company
Do you want to establish Information Technology (IT) or Information Technology Enabled Services (ITES) business in India?
India is considered as one of the preferred destinations for many Corporations doing business in IT or ITES.
The reasons are obvious:

Availability of qualified manpower with proven computing skills.

Largest English speaking population.

Highly cost effective infrastructure.

Focus Area of Central and State Government.

Availability of ready to use, state-of-the-art infrastructure in the form Software Technology Parks of India in almost every major city.

100% income tax exemption to 100% export oriented units registered under STP scheme of the Government of India.

These Software Technology Parks (STPs) are equipped with leasehold plots of land and ready to use offices, 24/7 power supply, broadband
connectivity and single window clearance. The benefits of registration under STPI can also be enjoyed in owned set-up and the custom bonding
requirements have been relaxed.
To know more on our STPI Consultancy services click here.
We specialize in setting up your business in India IT and ITES sector. Our expert team provides the following services for clients in IT &
ITES sector:

Incorporation of a company.

Compliance with Registrar of Companies (ROC).

Liaison with the Reserve Bank of India towards FDI approvals

Registration of the Corporation under STP scheme to avail the above referred benefits.

Registering the Corporation with the Income Tax Department and obtaining Permanent Account Number (PAN) and Tax Account Number
(TAN).

Setting up Payroll and Payroll Taxes.

Setting up the accounting by using the client preferred software.

We do not just set-up your business in India. We also continue to help you by:

Offering part time CFO services.

Undertaking write-up work for you.

Preparation of Financial statements.

Calculation and payment of withheld taxes.

Preparation and filing of returns of income and withheld taxes.

Filing of various returns with the Registrar of Companies.

not necessary for it to be a separate legal entity. Customs duty exemption on imports of capital equipments. but it should be possible to distinguish the imports and exports or supplies affected by the EHTP/STP units from those made by the other units of the enterprise. 9. 8. All relevant equipment/goods including second hand equipment can be imported (except prohibited items). enabling them to conduct exports operations at a pace commensurate with global standards. however. 4. Maintenance of Foreign Inward Remittance Certificate file (FIRC) & Bank Realization Certificate (BRC) file where the original of the FIRCs and BRCs are kept. It is a mandatory requirement and units which are irregular in submitting MPRs & QPRs can be denied services of STPI. Annual Performance Reports (APR): Yearly performance report should be submitted as per the prescribed format. Banking The units are free to have as many bank accounts as it desires but shall have to designate a single branch of the bank with which all export documents will be submitted. b. Maintenance of Sales Invoices. where copies of contracts received from buyers are maintained. including separate bank accounts. 10. 100% excise duty exemption on indigenous items procurement. 100% Foreign Direct Investment permissible through 'Automatic Route' of RBI. STPI Consultancy STPI (Software Technology Parks of India) Scheme The 100% Export Oriented Unit scheme (STP scheme) is for setting up of software development and IT enabled services firm in India for 100% Export. Statutory Reports for STP Units 2. 3. 2. Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the STP/EHTP unit. Maintenance of contract file. It is. Any other consulting under the Income Tax Act and the Companies Act. A distinctive feature of the STP/EHTP scheme is it provides single point contact services for member units. Software units may also use the computer system for training purpose (including commercial training). Statutory Compliance for STP Units Statutory Reports for STP Units a. 100% Depreciation on capital goods over a period of five years. 5. Green card enabling priority treatment for government clearances / other services. Maintain the accounts as under: a. . Equipment can also be imported on loan or lease basis. In other words the work of handling of all shipping documents & realization of export proceeds will have to be entrusted to this designated bank branch. c. 6. The STP scheme is administered by the Directors of STPI. Maintenances of Fixed Asset Registers. STPI scheme benefits and highlights 1. 7. Statutory compliance for STP units Accounts Distinct Identity: If an industrial enterprise is operating both as a domestic unit as well as an EHTP/STP unit. b. Central Sales Tax reimbursement on indigenous items procurement. Periodic Compliance Services 1. Monthly Progress Reports (MPR) & Quarterly Progress Reports (QPR): All units are required to submit Monthly Progress Reports & Quarterly Progress Reports by 7th of a month on completion of previous month and by 10th of a month on completion of previous quarter respectively in the prescribed format . This way you can focus on core issues of business of software development / processing and we take care of the other non-core functions. d. it shall have two distinct identities with separate accounts. Income tax holiday as per section 10A of the IT Act.

inter alia include. Government Approval Route All activities which are not covered under the automatic route. a number of rationalisation measures have been undertaken which. Investors are only required to notify the concerned Regional Office of RBI within 30 days of receipt of inward remittances and file required documents with that office within 30 days of issue of shares to foreign investors. Areas/sectors/activities hitherto not open to FDI/NRI investment shall continue to be so unless otherwise notified by Government. branch. DBC also advises on the methodology to be followed in regard to the management of foreign exchange. FDI under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India (RBI). The latest changes in the FDI policy were notified vide Press Note 4 (2006 Series). under the automatic route. DBC has executed substantial FDI assignments for a number of foreign corporations. wholly owned subsidiaries. As a result.FDI – Foreign Direct Investment An Overview The Government of India has recently undertaken a comprehensive review of the FDI policy and associated procedures. options available to a foreign entity for doing business in India. documenting cases for approval. project offices. JV companies etc. Automatic Route FDI up to 100% is allowed under the automatic route in all activities/sectors except the following which require approval of the government:  Activities/items that require an Industrial Licence  Proposals in which the foreign collaborator has an existing venture/tie up in India in the same field  Proposals for acquisition of shares in an existing Indian company in some cases  All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted b. in most sectors/activities. (DBC) DBC provides strategic advice on Foreign Direct Investment (FDI) in India. PROCEDURE TO SETUP BUSINESS IN INDIA INTRODUCTION First Question comes to our mind that what type of company we are going to setup in India? Types of business entities in India: In India. ROUTES FOR FOREIGN DIRECT INVESTMENT (FDI) a. the following types of business entities are available . dispensing with the need of multiple approvals from Government and/or regulatory agencies that exist in certain sectors. As per the extant policy. obtaining of approvals and permissions from the Reserve Bank and/or Foreign Investment Promotion Board and/or Government of India for setting up of liaison. FDI up to 100% is allowed. extending the automatic route to more sectors. the assignments included detailed presentations viz. Role of D Batra & Co. require prior Government approval. and allowing FDI in newsectors.

. There are some restrictions regarding issuing sweat equity for a company in India. Also see Annual corporate fillings in India for corporate maintainance requirements in India.Private limited company Public limited company Unlimited company Limited liability partnership Partnership Sole proprietorship Liaison office Project office Branch office Joint venture company Subsidiary company Both the Indian promoters and the foreign promoters can form the above mentioned business entity. A company in India can have foreign directors provided some conditions are fulfilled the directors of an Indian company both Indian and foreign directors are required to obtain Director Identification Number and Digital Signature Certificate. The following conditions apply only to a public company: It must have at least seven share holders. We here are talking in the formation of public limited company. PUBLIC LIMITED COMPANY A public company is defined as a company which is not a private company.

It must publish a prospectus or file statement in lieu of a prospectus before it can start transacting business.A public co. Obtain company seal Apply for UTI investors services limited/national securities depository limited to obtain a permanent account number. Make an application to the supritendent of stamps or an authorised bank requesting for stamping fo the memorandum of association and articles of association. Liaison office/representative office A liaison office could be established with the approval of the government of India. It must hold statutory meetings and obtain government approval for the appointment of the management. get the memorandum and articles of association wetted by the ROC and Printed along with the certificate of commencement. A public company is required to have at least 3 directors. Besides incorporation there are many other formalities in establishing business in India. The role of liaison office is limited to collection of information. TYPICAL PROCEDURE TO ESTABLISH BUSINESS IN INDIA In India establishing a business take some time. Register with employees provident fund organisation Register for provision tax. In order to be eligible to commence business as a corporation it must obtain another document called “trading certificate”. The following chart contains technical formalities including incorporating a public/private limited company in India: Obtain DIN for proposed directors of the new company Obtain DSC for proposed directors of the company Filling the proposed name of the company for approval to the registrar of the companies. promotion of exports/imports and facilitates technical/financial collaborations.1956 which are applicable only to public companies and should be consulted. is not authorised to start business upon the grant of the certificate of incorporation. PROMOTER . There are several other provisions contained in the companies ACT. Present the required documents along with the registration fee to the registrar of companies to get the certificate of incorporation. Liaison office can not undertake any commercial activity directly or indirectly.

Promoter is an Entity that plans a project or formation of a new firm. The registrar of companies intimated Mr. and then sells or promotes the plan or idea to others Promoters of company (1) These promoters have power of defining the object of a company and to decide on the various connected matters regarding the incorporation of Public ltd company. (3) If Company does not agree to enter into the contracts before the incorporation of the company the promoters will be liable for that.PQR company limited -MYN health insurance limited -ILK company limited -MNP company limited -JSM company limited e-Form 1A is signed by the Mr. advertisement on the circulation of prospectus. DIN is the first requirement so firstly Directors of company are going to formulate. MEMORANDUM OF ASSOCIATION . Yogesh within in six month. Yogesh who is one of the promoter of company. (2) Company will pay the remuneration to the promoters after promotion. will obtain DIN. Six names are as given below-XYZ company limited . every individuals that is directors of a company will make an application for the allotment of DIN to central government in DIN form. the best suitable name is MYN health insurance limited. REQUIREMENTS DIN (director identification number) As per provision new section 266A. e-Form 1A Company is going to suggest six names to the registrar of company for the selection of one suitable name in eForm. inserted by company Amendment Act 2006. The company promoters are going to incorporate is a public company and these promoters are to enter into preliminary contracts with vendors and to make arrangements for preparation.

such members will have unlimited liability. We are using limited word at the end of the name and the name accepted by the registrar will be engrave on its seal and be published affix on the outside of every office or place where business will be carried on. The MOA was prepared according to table B of schedule 1 for making company limited by share.the promoter of company going to suggest to the registrar of company MYN health insurance company as a main name and other suggested name also to show that our company “Public Company” is limited by shares. Insurance is done against various diseases The company may diverse the business. . The following are exceptions to the rule of limited liability of members :If a member agrees in writing to be bound by the alteration of MA / AA requiring him to take more shares or increasing his liability. 18 is the form required to fill for the domicile of the company and this form should be submitted to the registrar of the companies with in 30 days of the incorporation of the business.MOA is the charter document of the company. Notice in form no. If every member agrees in writing to re-register the company as an unlimited company and the company is reregistered as such. In case of non trading company whose business is not confined to one state must mention the objects which are extended to the states in which they are going to operate. Also the name of the company should be written outside the registered office in two languages one in the local language and another English. he shall be liable upto the amount agreed to by him. Object Clause This clause very important as specifies which are the activities to be carried out and which not to be carried out. CONTENTS OF MOA(1)Name clause. Liability clause A declaration that the liability of the members is limited as the company is limited by the shares. Doctrine of ultra vires state that the company cannot do anything beyond what is written in the MA clause and are not reasonable incidentally or necessary to the attainment of objects is ultra-vires the company and therefore void. No liability of the company arouse on such transactions which are beyond the power mentioned in the memorandum of association. the promoter going to promote for the registration of company under company Act 1956. The company cannot do anything which is not written in the memorandum of association This clause must specify :The company will carry on business of insurance against the health of people. Domicile clause The registered office is the address given to the registrar of the companies of the office.

20 per share (e) Third call. 10 per share RULES AND REGULATIONS-Directors have right to receive and postpone a call of share. ARTICLES OF ASSOCIATION The AOA is subsidiary document of MYN health insurance company. 100.Rs.MYN company have authorized capital of 10 crore and value of each share us Rs.If to the knowledge of a member.Rs. the members for the time being constituting the company would be personally liable for the debts of the company contracted during that time.Rs. (6) Association Clause. 10 crore and it is divided into Rs. The persons who are desire for the motion of company and the number of shares by these subscribers are 2000 in total. while the number is so reduced.If the shareholders will not pay the unpaid amount after the due notice. -Transfer of shares .authorized capital of company is Rs. addresses and description of subscribers. The Board of Director of MYN health insurance Company limited may declare on share wholly or in part to be exempt this procedure.Rs. the number of shareholders has fallen below the legal minimum. CONTENTS(1)Share capital. 15 per share (b)Allotment money. (5) Capital Clause. (a)Application money. share will be forfeited by the company. 35 per share (c) First call. .MYN Company has divided the face value of shares that Rs. 100 per share.this clause was followed by names. -MYN lien on sharesMYN health insurance company limited will have first lion on the shares and debentures registered in the name of members and upon the proceed of sales. in which they made all the rules and regulations of their own. which specify all the rights and duties of all the members and directors. 100 into five parts. Company is following the table A of schedule 1. (2) Calls on share.Rs. 20 per share (d) Second call. (seven in the case of a public limited company and two in case of a private limited company ) and the company has carried on business for more than 6 months.

MYN health insurance company limited may from time to time raised or borrow any sum or sums of money.Manoj (c) The first directors shall holds office until the close of first A.Yogesh . of company shall be held in each subsequent calendar year and not more than 18 months shall elapse b/w two A. Powers of directorsThe board shall be enlist exercise will soul powers do will such aid and things as company is authorized is exercise and do.M. shall be held by the company within 18 months of its incorporation.G. . the MYN health insurance company limited can convert any paid up shares in to stock.Shivam . of the company. -General Meeting (1)First A. -Alteration of capital As provide in MOA of MYN health insurance of company limited the capital of company can be increased or decreased by passing a special regulation and making alteration in AOA.M. (2) Subsequent A.The shareholders of the company can transfer the share of company where they feel like. -Directors(a)Member of directors shall not be less than 3 or limit on maximum.G.M. -Conversation of share into stock By passing a special resolution.G. -Dividend and Reserves The company will transfer 10% of its net profit to reserve for its future and rest after making necessary deductions will be divided as dividend to the shareholders.G. (b) First directors of company are.M. -Borrowing powers Subject to the provision of section 58 A. 202 and 243 of the company act 1956.

the losses shall be …………. ON THIS DAY HAS BEEN INCORPORATED UNDER THE COMPANIES ACT. -AuditEvery year the accounts of the company shall be balanced and audited and correctness of the profit and loss account and balance sheet ascertained by one or more auditors. The personal details here and with the addresses are provided are similar.-Power to make calls -power of issue of debenture -power to borrow money otherwise than by debentures . as may be. 1956 AS A PUBLIC LIMITED COMPANY Signed at Chandigarh 1 NOVEMBER 2009 Seal of Registrar .this form mention the particulars of directors. E-Form 32 is signed by the promoter of the company.Power to make loans -The sealCompany has a common seal and directors shall precicle for the sale ………. -Winding upIf MYN health insurance limited company will be wound up and the assets available for distributed among the members as such …………………………… to repay the whole of the assets will be distributed so that. E-Form 32.by the members in proportion and the capital paid up. as ……. CERTIFICATE OF INCORPORATION COMPANY NAME: MYN HEALTH INSURANCE LTD 105899 I HERBY CERTIFY THAT MYN HEALTH INSURANCE LTD..

India has got double taxation treaties with many countries. Many tax incentives available to IT companies.1956 read with companies (central government) general rules and forms. and other laws and regulation. Minimum authorised capital of only INR 100.N. Skilled and intelligent employees are available at nominal rate.S. With its large base of English speaking skilled human resource.PANDEY Registrar of companies CERTIFICATE OF COMMENCEMENT OF BUSINESS I hereby certify that MYN health insurance Ltd. Applicable laws for forming a company in India The laws applicable for incorporating a company in India include the Indian companies ACT. 1956 on the 9-November.1999 is applicable for foreign investments and transactions.000 and INR 500. knowledge process outsourcing etc. 1956 the Indian Income TAX Act. which was incorporated under the Companies Act. it is most sought after destination for business process outsourcing.000 for private and public company respectively is required to form an establishment in India. REVIEW OF LITERATURE . day of Monday 2009 prescribed form that the conditions of sections that has been complied with this certificate is given under my hand and is entitled to commence the business. The foreign exchange management Act. Seal of Registrar Registrar of Companies Advantages of incorporating in India Many tax exemptions available to the company set up in Speciel Economic Zone. of Ludhiana.

Tax Advisory Experts. Elected as Central Council Member of the Institute of Chartered Accountants of India in the year 1994 and been serving the Central Council of the ICAI 4-Nada Kobeissi (Long Island University)Journal of Small Business Management. assistance in business negotiations and project feasibility studies We are a team of professionals with diverse area of specialisation including Corporate Strategists. Joint Ventures and Collaborations. joint venture formations. the study found a strong positive effect. We provide real world solutions to complex business issues through audit and assurance functions. audits. partner search. Issue 4. After controlling for several potential variables that could have an impact on business start-ups and community developments. corporate laws and ranging experience on different aspects relating to functioning of public sector entities at the State and National level including Statutory audit of large number of public sector companies and activitiesrelated to socio-economic development of the State and the Country Having experience of more than 10 years in the areas of Auditing and Assurance Services. 489513. Foreign Exchange Management Act. Mergers and Acquitions. Financial Analyst and Market Analyst and M & A Specialists. the study also considered policy implications associated with the CRA regulation as a welfare improving initiative in low-income communities. 2-Dr. taxation-international and domestic.(Diploma in Taxation. Vijay Vitthal’s Experience(Business Analyst – Healthcare Misys Healthcare Systems) (Hospital & Health Care industry)January 2007 — December 2009 (3 years ) Business Analyst. October 2009 Thus the aim of this paper is to investigate potential relationship between banks' CRA lending activities. Misys Healthcare Systems (India) Pvt Ltd under Misys Software Solutions (India) Pvt Ltd • Author and owner of Functional Requirement Specification / Functional Document Specification of Interoperability for Misys EMR Connect for both Misys EMR and Misys CPR products • Client facing skills /experience in delivering healthcare industry solutions • Author for Functional Requirements Specification to the connect product which connects all healthcare EMR products and also to Misys EMR product solving client issues • Drafted Functional Requirements Specification for Development Analyst Group 3-SUNIL GOYAL(M. Investment Planning. Disinvestments. AICWA.. It offers ground for certain government intervention in the loan market . Hand Holding of Foreign Companies to setup business in India Project Related Services. Our philosophy has always been to develop and deliver solutions that not just meet but exceed the business expectations of Client. business valuation studies.. FCA) According to Shri Sunil Goyal (Senior Most partner of the firm) and formed the firm in the year 1980.1-KUMAR SANJAY AND ASSOCIATES We at KSA focus on helping clients design and build Tomorrow’s organisation. Diploma in Labour Law).LLB. M.Com. Misys EMR. Trustee services. Misys Connect. merger & acquisitions. Taxation including Tribunals and Settlement Commission. SOX Audit etc. Having a vast experience since 1980 in the areas of taxation. Software Development Analyst.A. Beside its social and economic implications. due diligence studies evaluation of entry options. 47. and new business start-ups and economic growth in local markets. Vol. The paper proposes that new start-ups will have spillover effects that will consequently contribute to community development. FCS. pp.

2009 . the study found a strong positive effect. Corporate governance for non- . Tilburg University . the study also considered policy implications associated with the CRA regulation as a welfare improving initiative in low-income communities. 2009 5-Conflict Resolution and the Role of Corporate Law Courts: An Empirical Study Joseph A.Department of Business Law March 2006 Most of the literature on corporate governance focuses on listed companies.Law School. Joint Ventures. Our results emphasize the importance of the private enforcement of intra-firm disputes and the effectiveness of a specialized court in providing protection to minority shareholders. Tilburg University . First.Department of Business Law) August 12. Beside its social and economic implications. After controlling for several potential variables that could have an impact on business start-ups and community developments. European Corporate Governance Institute (ECGI) Erik P. European Banking Center (EBC).Venture Capital. private enforcement. M. the absence of a robust debate on the best governance practices for these firms is perplexing. European Corporate Governance Institute (ECGI)) Erik P.Thus the aim of this paper is to investigate potential relationship between banks' CRA lending activities. Keywords: legal procedure. Last revised: September 25. and Family Businesses Joseph A. European Banking Center (EBC). corporate law. McCahery Tilburg University . Given the importance of these firms for innovation and job creation.Law School. McCahery (Tilburg University . we develop a benchmark for how effective the court is in resolving confl icts in a speedy and decisive manner. It offers ground for certain government intervention in the loan market. M. 2009 ECGI . Vermeulen (Tilburg University .Tilburg Law and Economics Center. We base our findings on a hand-collected database of filings of legal actions brought against companies between 2002-2008. derivative actions Date posted: August 23. the majority of firms worldwide are non-listed. and new business start-ups and economic growth in local markets. Date posted: October 13. 2009 6-Corporate Governance and Innovation . However. The main conclusion is that the grant of injunctive relief provides an incentive for the parties to the lawsuit to seek out settlements and thereby prevent further costly and unwanted litigation.Law Working Paper No. The paper proposes that new start-ups will have spillover effects that will consequently contribute to community development. 132/2009 We study private enforcement of corporate law in a civil law jurisdiction that has a relatively weak company law regime. Vermeulen Tilburg University .Tilburg Law and Economics Center.

EU Lawmaking. non-listed companies. Tilburg University . (2) contractual arrangements. best governance practices. Break Through Rule Date posted: February 09. and 2) creating new provisions that would weaken incumbent managers’ lock on control that would make corporate control more contestable. company law Date posted: April 04. European Banking Center (EBC).Tilburg Law and Economics Center. Bratton University of Pennsyvlania Law School. Mandatory Bid Rule. 2010 TILEC Discussion Paper No. venture capital. to be remarkably popular with Member States and does not need any further discussion. innovation. Proponents of such a revision urge the Commission to redress the shortcomings of the Directive’s implementation in two ways: 1) revising the mandatory provisions of the Directive making them less easily to avoid. McCahery Tilburg University . best practice guidelines. We argue that the corporate governance debate for non-listed companies will proceed along three dimensions: (1) legal and institutional structures. Board Neutrality.Law School. European Banking Center (EBC). Vermeulen Tilburg University .listed companies.Tilburg Law and Economics Center. In this short essay. M. Tilburg University . Keywords: corporate governance. and (3) optional. we show that the Commission’s opt out strategy has proved. The article recounts the history of corporate governance from the development of the joint venture business form to the recent initiatives that help to foster the legal infrastructure to keep a modern economy in gear. 2010-006 Does the Takeover Bids Directive need revision? The answer to this question will most likely affect the Commission’s assessment of the Directive in 2011 and could initiate its revision.Law School. in practice. 2006 7-Does the Takeover Bids Directive Need Revision? Joseph A. joint ventures. Keywords: Takeover Bids Directive.Department of Business Law February 4. McCahery Tilburg University . however. Market for Corporate Control. European Corporate Governance Institute (ECGI) . family-owned businesses. 2010 8-How Does Corporate Mobility Affect Lawmaking? A Comparative Analysis William W. is concerned with ensuring that firms are run efficiently and protect the interests of business parties and investors. European Corporate Governance Institute (ECGI) Erik P. European Corporate Governance Institute (ECGI) Joseph A. such as joint-ventures or venture-capital-backed start-ups and spin-offs.

2004-024 This paper evaluates the primary legal and financial mechanisms that help support the development of a venture capital market. 2008 . As to incorporation mobility. Reincorporation mobility is still far from generally available in the EU. European Banking Center (EBC). Specifically. regulatory competition Date posted: January 25. M. However. competitive pressures do not yet motivate changes in the fundamental governance provisions of national corporate law regimes. recent data from Germany and The Netherlands indicate declining numbers of such foreign incorporations over time. Many entrepreneurs have taken advantage of this new freedom of establishment. 91/2008 Amsterdam Center for Law & Economics Working Paper No. offers substantial contracting benefits for investors and is crucial to the operation of a mature venture capital market. Tilburg University . We argue that the United Kingdom.Law School.Department of Business Law January 2008 ECGI . Last revised: April 16.Department of Business Law December 2004 Tilburg Law and Economics Center Discussion Paper No.Tilburg Law and Economics Center.Law Working Paper No. Vermeulen Tilburg University . Keywords: corporate mobility. More specifically. 1086667 This paper examines the impact of increased corporate mobility on corporate lawmaking in the European Union (EU). Vermeulen Tilburg University .Erik P. costs of regulation. We then argue that the emergence of more efficient limited partnership structures may arise as a consequence of the competition between European states. we seek an answer to a simple question: Has the increased mobility which arose from the implementation of the Societas Europaea (SE) and the path-breaking decisions of the European Court of Justice (ECJ) led to an outbreak of regulatory competition and the emergence of a Delaware-like member state in Europe? Two types of corporate mobility are distinguished: (1) the incorporation mobility of start up firms and (2) the reincorporation mobility of established firms. the Centros triad of cases makes it possible for start-up firms to incorporate in a foreign jurisdiction. European Corporate Governance Institute (ECGI) Erik P. which has recently embarked on general and limited partnership law reform. 2008-01 Georgetown Law and Economics Research Paper No. we argue that emulating the organizational and contractual pattern of the US venture capital market could enhance the development of the European venture capital market. in light of the competitive lawmaking environment that the . 2009 9-Limited Partnership Reform in the United Kingdom: A Competitive. Venture Capital Oriented Business Form Joseph A. As a result. McCahery Tilburg University . could. based on US experiences. We first show that the modernization of the 'venerable' limited partnership form. M.

Section 1 briefly reviews the history of partnership law reform in Europe. It then explores the prominent features of the UK special Limited Partnership statute. Vermeulen Tilburg University . limited partnership. The review of traditional partnership law reveals that the absence of new business forms may be due to status quo bias and network effects. We show how a range of legal strategies. McCahery Tilburg University . Regulatory competition Date posted: October 22. which makes it possible for venture capitalists to organize their contractual relations that are best suited to the characteristics of the venture capital market. European Banking Center (EBC).Department of Business Law October 2005 TILEC Discussion Paper No. be in the best position to enter the competition within the EU. M. The chapter evaluates the role of corporate law in formulating effective solutions to the core agency problems that arise in non-listed companies. venture capital market. which were originally designed for public . European Corporate Governance Institute (ECGI) Erik P. 2005 11-The Corporate Governance Framework of NonListed Companies Joseph A.Tilburg Law and Economics Center. Finally. Tilburg University . M. public policy Date posted: February 09. our analysis provides an understanding of the competitive forces that shape the ongoing reforms of limited partnership law and related business forms in Europe. 2005-028 This article examines the theoretical arguments for and against the importance of new partnership-type business forms. Keywords: Venture capital.Law School.Department of Business Law This article appears as Chapter One in Corporate Governance of Non-Listed Companies. Section 3 evaluates whether we can project a pattern of regulatory competition in the business organization law context that could prompt lawmakers to innovate by introducing new partnership-type business forms.ECJ has opened up. innovative companies. Vermeulen Tilburg University . Section 2 turns to the importance of partnership law reform and the introduction of new business forms to a robust economy. Keywords: Network effects. 2005 10-Network Effects and Regulatory Competition: An Introduction to the Expectations and Challenges of Partnership Law Reform Erik P.

joint ventures. Incomplete Law. and (3) limited liability . Europe and Asia and points to the underlying conditions that shape the markedly different reform outputs.Tilburg Law and Economics Center. Keywords: New Company Law. M. Contracts. and cooperative arrangements. Innovation. Keywords: corporate governance. Our empirical analysis points to three important factors . McCahery Tilburg University . 2009 12-The New Company Law .that effect the incentives for new firm creation. 2006 . However. Each of these three parts has a major theme: the theme of Part I is how the creation of clear and simple default rules provide a governance framework for non-listed companies. innovation. the theme of Part II is the private ordering of non-listed companies. non-listed companies. we find that many of the new company law reforms are incomplete. policymakers use new company law initiatives to encourage entrepreneurship. In general. and the theme of Part III is the analysis of best practice guidelines that supplement the contractual relations between parties. This paper distinguishes the different strands of company law reforms arising in the United States. innovation. European Banking Center (EBC). family-owned businesses.Department of Business Law Masato Hisatake Research Institute of Economy. these new company law reforms retain the ability to generate rents due to their adaptability and responsiveness to social and economic change. company law Date posted: February 10. (2) fiscal transparency.companies but later adapted to closely held firms. Tilburg University . Vermeulen Tilburg University .What Matters in an Innovative Economy? Joseph A.(1) private ordering. Corporate Taxation Date posted: November 12. can be used effectively to promote economic value while detecting and correcting problems that occur in non-listed companies. European Corporate Governance Institute (ECGI) Erik P. Trade and Industry Jun Saito Nikon Corporation September 2006 Lower barriers of entry for new firms and more flexibility in structuring a business organization are the two important factors motivating the introduction of the new company law. The book is divided into three parts. venture capital.Law School. Nevertheless.

European Corporate Governance Institute (ECGI) Erik P. and questions whether they are sufficiently flexible and responsive to solve the two-sided agency problems that characterize the relationship between the entrepreneur and the venture capitalists. This paper critically examines these claims and suggests that European policymakers should focus on overcoming the institutional. it is widely assumed that Europe lags way behind the United States. policymakers use new company law .Department of Business Law December 2000 As far as the venture capital market is concerned. M. with the support of interest groups. The prospects for the introduction of a new vehicle depend on the regulatory competition and emulation. A really underrated issue in the success formula of the US venture capital industry is the influence of legal forms on the quality of venture capital contracting. may make high profile venture capitalists more willing to invest in new enterprises. is crucial to Europe's attempt to emulate the successful US venture capital market. Indeed. should undertake the task of developing a new limited liability vehicle. Vermeulen Tilburg University . which is characterized by clarity and simplicity. legal. a new organizational form.Tilburg Law and Economics Center. based on US experiences. It is suggested that policymakers. Trade and Industry Jun Saito Nikon Corporation Lower barriers of entry for new firms and more flexibility in structuring a business organisation are the two key factors motivating the introduction of the new company law. European Banking Center (EBC).Department of Business Law Masato Hisatake Research Institute of Economy.Law School.Towards a New 'Company' Structure for High-Tech Start-Ups Erik P. This paper analyzes the characteristics of European company structures. McCahery Tilburg University . In general. Vermeulen Tilburg University . in order to bridge this gap Europe should piggyback on US capital market institutions and their securities regulations.13. fiscal. M. Tilburg University . Recent papers have asserted that. Date posted: January 12. This paper then argues that the introduction of an optimal organizational form for high-tech start-ups. and cultural obstacles that are understood to impose significant costs on start-up firms. particularly the Dutch private company. 2001 14-Traditional and Innovative Approaches to Legal Reform: The 'New Company Law' Joseph A. which together may eventually culminate in overcoming path dependent barriers to the European venture capital market.

insofar as it operates through corporate venture capital investments.and What to Do about It. Vermeulen Tilburg University . Corporate Venture Capital. we find that the participation of multinationals plays a crucial role in realizing the success of these initiatives.(1) private ordering. innovation.Tilburg Law and Economics Center. European Corporate Governance Institute (ECGI) Erik P. and (2) providing direct investments. The paper shows a shift in the fundamental nature of corporate venture capital and provides an account of the governance structures and contractual characteristics that encourage successful alliances between corporations and venture capital funds and their portfolio companies. European Banking Center (EBC). We can now see that.Department of Business Law May 29.that effect the incentives for new firm creation. we find that many of the new company law reforms are incomplete. such as governments. it gives both strategic and financial benefits to the parties involved. Keywords: Venture Capital. Tilburg University .initiatives to encourage entrepreneurship.Law School. 'Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed . contracts. the venture capital market is getting its magic back . Corporate Venturing. and entrepreneurs. In this paper. we investigate the recent examples of governments that have followed either one of these suggestions. Josh Lerner. He argues that governments better limit their role as catalysts by: (1) ensuring that the economic environment is conducive to entrepreneurial activity. (2) fiscal transparency. and (3) limited liability . Government initiatives are usually characterized by poor design and a lack of understanding for the venture capital process. innovation and cooperative arrangements. Innovation. Keywords: new company law. However. 2010 FINDINGS . Europe and Asia and points to the underlying conditions that shape the markedly different reform outputs. traditional venture capitalists. incomplete law Date posted: May 14. 2010 In his book. there is a world-wide revival of corporate venturing activities. Entrepreneurship Date posted: May 29.' Harvard Business School Professor. Our analysis points to three important factors . This paper distinguishes the diverse strands of company law reforms arising in the United States. In the aftermath of the financial crisis. M. Relying on standard measures of success.and that when corporations participate in the process. 2007 15-Venture Capital Beyond the Financial Crisis: How Corporate Venturing Boosts New Entrepreneurial Clusters (and Assists Governments in Their Innovation Efforts) Joseph A. Nevertheless. explains that governments can only play a limited role in spurring innovation and entrepreneurship. McCahery Tilburg University . these new company law reforms retain the ability to generate rents due to their adaptability and responsiveness to social and economic change.

trustpass.org.companyformationindia...companyformationindia. 132/2009 Steps involved in starting business in India Registration Requirements: Time to No: Procedure 1 Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National) Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National) Reserve the company name online with the Registrar of Companies (ROC) (National) Stamp the company documents at the State Treasury (State) or authorized bank (Private) 1 day INR 100 3 days INR 1.wordpress./procedure-involved-to-start-a-company-private-limited-in-india/ madaan.rbi.business_In_India/Incorporation_of_business.com/.. Along with the setup of business in India their are certain advantages of incorporation of business in India.alibaba.com/set-up-a-public-limited-company.com/steps-to-set-up-a-pvt-ltd-company..in/.500 2 days INR 500 1 day Get the Certificate of Incorporation from the Registrar of Companies.com/income-tax-blogs/procedure-set-branch-office-india www. Ministry of Corporate Affairs (National) Make a seal (Private) 5 days INR 1.bmswiz. There are certain laws which you have to adhere and disobeyance to it is crime.So this is the proper procedure to setup a business in India you have to go through the proper process from the idea generation to the commencement of the business. And To setup a business in India is not a difficult task there are many government organisations which help you in it.html bhagatneeraj..org/.000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1) INR 14.133 (see comments) 2 3 4 5 6 complete: 1 day Cost to complete: INR 350 (cost depends on the number of seals required and .indianembassy.000 for AOA for every INR 500.in elagaan. REFRENCES: kumaran.html www.html ECGI ./procedure-to-set-up-a-branch-office-in-india.com/companyformation.html www.com/incorporateprocedure.com/. You have to accumulate all the documents required to be filed with the registrar...asp www.asp www..html www./Company_set_up_procedure_in_India.Law Working Paper No.taxguru.300 (INR 200 for MOA + INR 1.

Identity proof (any of the following): Permanent Account Number card. Obtain the provisional DIN by filing application Form DIN-1 online. .the time period for delivery) 7* 8* 9* 10* 11* 12* 13* Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. The provisional DIN is immediately issued. driver’s license.500 (INR 2000 + 3 times registration fee for trade refuse charges) INR 5. and Establishment Act (State/Municipal) 7 days INR 67 (INR 60 application fee + 12. This form is on the Ministry of Corporate Affairs 21st Century (MCA 21) portal. voter card. if not downloaded) 7 days INR 57 (INR 50 application fee + 12.100 (registration fee INR 5000 + stamp duty INR 100) No cost 12 days No cost 9 days No cost Detailed Steps and Explanation of procedure to start Business in India Procedure 1. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd. as outsourced by the Income Tax Department (National) Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department Register with the Office of Inspector. Shops. telephone bill. The application form must then be printed and signed and sent for approval to the ministry by courier along with proof of identity and (address): a. passport. passport.. b.36% service tax + INR 5 for application form.36% service tax) 2 days Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) Register for Profession Tax at the Profession Tax Office (State) Register with Employees’ Provident Fund Organization (National) Register for medical insurance at the regional office of the Employees’ State Insurance Corporation (National) 12 days 2 days INR 6. or voter card. Residence proof (any of the following): driver’s license. Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National) Time to complete: 1 day Cost to complete: INR 100 Procedure:The process to obtain the Director Identification Number (DIN) is as follows: 1.

bank statement. After being cleared by the junior officer. the applicant must obtain a Class-II Digital Signature Certificate. Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National) Time to complete: 3 days Cost to complete: INR 1. 2. Once approved. Company directors submit the prescribed application form along with proof of identity and address. The ROC in Mumbai has staff members working full time on name reservations (approximately 3 but more if the demand increases). issues a permanent DIN. Applicants need to keep consulting the website to confirm that one of their submitted names was approved. electricity bill. upon approval. the name requests are sent to the senior officer for approval. Under e-filing for name approval. The digital signature certificate can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services.500 Procedure: To use the new electronic filing system under MCA 21. Procedure 2. A maximum of 6 suggested names may be submitted. . Each agency has its own fee structure. Procedure 3. ranging from INR 400 to INR 2650. The concerned authority verifies all the documents and. They are then checked by ROC staff for any similarities with all other names in India. it takes 2 days for obtaining a clearance of the name if the proposed name is available and conforms to the naming standards established by the Company Act (1 day for submission of the name and 1 day for it to appear on the MCA website). The MCA receives approximately 50-60 applications a day. The process takes about 4 weeks. the applicant can check the availability of the desired company name on the MCA 21 web site. the selected name appears on the website.ration card. In practice. Reserve the company name online with the Registrar of Companies (ROC) (National) Time to complete: 2 days Cost to complete: INR 500 Procedure: Company name approval must be done electronically.

is as follows: a. Articles of Association: INR 1000/.000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1) Procedure: The request for stamping the incorporation documents should be accompanied by unsigned copies of the Memorandum and Articles of Association.000/.Procedure 4. subject to a maximum of INR 50. showing payment of the requisite stamp duty. they must be signed and dated by the company promoters. and the number of shares subscribed. address. the stamp duty payable on the Memorandum and Articles of Association for company incorporation in Mumbai. occupation. including the company name and the description of its activities and purpose. This information must be in the applicant’s handwriting and duly witnessed. Get the Certificate of Incorporation from the Registrar of Companies. one of which is duly stamped.000. The Superintendent returns the copies. Procedure 5. and embossed.for every INR 500. Stamp the company documents at the State Treasury (State) or authorized bank (Private) Time to complete: 1 day Cost to complete: INR 1.300 (INR 200 for MOA + INR 1. The rate of stamp duty varies from state to state. Form-1 (declaration of compliance): INR 100. father-”s name.000. c. According to Article 10 and Article 39 of the Indian Stamp Act (1899). The company must ensure that the copies submitted to the Superintendent of Stamps or to the authorized bank for stamping are unsigned and that no promoter or subscriber has written anything on it by hand.000 for AOA for every INR 500. Once the memorandum and articles of association have been stamped.of share capital (or part thereof).133 (see comments) . Memorandum of Association: INR 200. Ministry of Corporate Affairs (National) Time to complete: 5 days Cost to complete: INR 14. signed. b. and the payment receipt. Maharashtra.

the ROC requests for pre-scrutiny of documents for any corrections.000 after the first INR 10. The fees for registering a company can be paid online by credit card or in cash at certain authorized banks. It takes around one week for clearance of payment. If the nominal share capital is over INR 100. AOA. INR 200 for a company with authorized share capital of more than INR 100. up to INR 5.000. up to INR 500.000.000. Please note that in Mumbai. and also of the signed and stamped form of the Memorandum and Articles of Association.00. and e-form 32. up to INR 1 10. the applicant must obtain a demand draft for filing fees amount in favour of -” the Pay and Accounts Office. e.000. Along with these documents. The online filing mechanism requires only one copy of scanned documents to be filed (including stamped MOA. Articles of Association.000: INR 100.000: INR 50. Form 32. additional fees based the amount of nominal capital apply to the base registration fee of INR 4. e-form 18. Only after the clearance of payment does the ROC accept the documents for verification and approvals. scanned copies of the consent of the initial directors.000.000.000 after the first INR 1.000 of nominal share capital or part of INR 10. consent of directors and stamped power of attorney must be physically submitted to the Registrar of Companies. offline: one can upload all incorporation documents and generate the payment challan. c.000 but less than INR 500. The certificate of incorporation is sent automatically to the registered office of the company by registered or rush mail. The payment of fees can be made: 1. The registration fees paid to the Registrar are scaled according to the company’s authorized capital (as stated in its memorandum): a.000 after the first INR 500. Against this challan.000 after the first INR 5. and 32): a.Procedure: The following forms are required to be electronically filed on the website of the Ministry of Company Affairs: e-form 1.000 or less: INR 4. For every INR 10. online: the applicant makes the payment by credit card and the system accepts the documents immediately. INR 100. must be attached to Form 1.000. For every INR 10. 18. Once the documents have been uploaded.000: INR 200. INR 300 for a company with nominal share capital of INR 500. d. For every INR 10. Form 18 and the original name approval letter. New Delhi” and this demand draft is payable in Mumbai. Ministry of Corporate Affairs. For every INR 10.000. before they are uploaded. Schedule of Registrar filing fees for the articles and for the other forms (l.000 of nominal share capital or part of INR 10. The applicant must make the payment at specified branches of certain banks. and POA).000: b. they can then be approved without any further correction.000. b. One copy of the Memorandum of Association. 2.000: INR 300. Form 1.000 of nominal share capital or part of INR 10.000 or more but less than INR .000 of nominal share capital or part of INR 10.000.

the number of seals required. companies require a seal to issue share certificates and other documents.2.36% service tax + INR 5 for application form.000. Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. as outsourced by the Income Tax Department (National) Time to complete: 7 days Cost to complete: INR 67 (INR 60 application fee + 12. Procedure 7.500. which was authorized to set up and manage IT PAN Service Centers in all cities where there is an Income Tax office. c. as applicable. The cost can range from INR 300 to INR 500. The cost depends on the number of words to be engraved. The National Securities Depository Limited (NSDL) has also launched PAN operations effective June 2004. and the time period for delivery.. if not downloaded) Procedure: Under the Income Tax Act. . each person must quote his or her Permanent Account Number (PAN) for tax payment purposes and the Tax Account Number (TAN) for depositing tax deducted at source. the Income Tax department (effective July 2003) outsourced their operations pertaining to allotment of PAN and issuance of PAN cards to UTI Investor Services Ltd. The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. The Central Board of Direct Taxes (CBDT) has instructed banks not to accept any form for tax payment (challan) without the PAN or TAN.500.000 or more. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd.INR 500 for a company with nominal share capital of INR 2. In order to improve PAN-related services. Procedure 6. 1961. Make a seal (Private) Time to complete: 1 day Cost to complete: INR 350 (cost depends on the number of seals required and the time period for delivery) Procedure: Although making a company seal is not a legal requirement for the company to be incorporated. setting up TIN Facilitation Centers.

com) or offline.. After verification of application.36% service tax) Comment: The Tax Account Number (TAN) is a 10-digit alphanumeric number required of anyone responsible for deducting or collecting tax. UTIISL or NSDL as the case may be.com The processing fee for both applications (a new TAN or a change request) is INR 50 (plus applicable taxes). along with proof of company address and personal identity. all TDS/TCS payment challans. The section also makes it mandatory for the TAN to be quoted in all tax-deducted-at-source (TDS) and taxcollected-at-source (TCS) returns. Failure to apply for a TAN or to comply with any of the other provisions of the section is subject to a penalty of INR 10. will print the PAN card and deliver it to the applicant. The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. The application for PAN can also be made online but the documents still need to be physically dropped off for verification with the authorized agent.incometaxindia. and all TDS/TCS certificates issued. .in . Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department Time to complete: 7 days Cost to complete: INR 57 (INR 50 application fee + 12. with a certified copy of the certificate of registration. Since outsourcing.in and http://tin. www. For more details see(www. The application for a TAN can be made either online through the NSDL website (www. issued by the Registrar of Companies.utiisl.nsdl. the same is sent to the Income Tax Department and upon satisfaction the department issues the TAN to the applicant.co. The provisions of Section 203A of the Income Tax Act require that all persons who deduct or collect tax at the source must apply for a TAN. and www.nsdl.gov. any authorized franchise or agent appointed by the National Securities Depository Services Limited (NSDL) can accept and process the TAN application.tin. Locations of TIN Facilitation Centres can be found at www. IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A). A fee of INR 60 (plus applicable taxes) applies for processing the PAN application. After obtaining PAN from the Income Tax department. and issue an acknowledgement slip.in ) Procedure 8.in .000/. assist the applicant in filling out the form. The national government levies the income tax.tin-nsdl.The PAN application is made through the above mentioned service centers using Form 49A.gov.co. collect filled-out forms.incometaxindia.

e. the Schedule for fees for registration and renewal of registration (as per Rule 5) is as follows: a. c. 0 employees: INR 100. 101 or more employees: INR 4500. f. according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961. after Form A and the prescribed fees are received and the correctness of the statement on the form is satisfactorily audited. the employer must register the establishment in the prescribed manner within 30 days of the opening of the business. d.-(1948). 1 to 5 employees: NR 300. Hence in the given case the registration fees would be INR 2000. . the hard copy of the application must be physically filed with the NSDL.500 (INR 2000 + 3 times registration fee for trade refuse charges) Procedure: A statement containing the employer-”s and manager-”s names and the establishment’s name (if any). 2003 dated 15th December 2003. Since the amendments in the Maharashtra Shops and Establishment (Amendment) Rules. g. 51 to 100 employees: INR 3500. the establishment must be registered as follows: – Under Section 7(4).Upon payment of the fee by credit card. 6 to 10 employees: INR 600. – Under Section 7(2). – Under Section 7(1). and Establishment Act (State/Municipal) Time to complete: 2 days Cost to complete: INR 6. as there are 50 employees In addition. Procedure 9. and category must be sent to the local shop inspector with the applicable fees. b. Register with the Office of Inspector. under the Mumbai Municipal Corporation Act. Shops. postal address.-(1888). 11 to 20 employees: INR 1000. an annual fee (three times the registration and renewal fees) is charged as trade refuse charges (TRC). the establishment must submit to the local shop inspector Form A and the prescribed fees for registering the establishment. the certificate for the registration of the establishment is issued on Form D. 21 to 50 employees: INR 2000. According to Section 7 of the Bombay Shops and Establishments Act.

companies will fill in all their details online for Form 101 and then go to the office only so that the Sales Tax Office can verify the above listed-documentation. other accompanying documentation includes: 1) Certified true copy of the memorandum and articles of association of the company.4) One recent passport-sized photograph of the applicant. However. The authorized representative signing the application must be available at the Sales-Tax Office on the day of application verification. The whole process will be put online by the spring of 2009. After a short wait. The clerk at the counter verifies that the applicant has all the required documents and gives the applicant a token (waiting number). in the case of Doing Business): Proof of ownership of premises viz. ownership deed. This means that rather than physically having to go to the office.3) Proof of place of business (for an owner.Procedure 10.100 (registration fee INR 5000 + stamp duty INR 100) Procedure: Beginning April 1.5) Copy of Income Tax Assessment Order with PAN or copy of PAN card. copy of election photo identity card. There. copy of driver’s license. . copy of property card. the company is considered fully registered to pay taxes. In addition to Form 101. copy of property card or latest receipt of property tax from the Municipal Corporation. which requires registration by filing Form 101. 2005.2) Proof of permanent residential address. all the information on Form 101 is manually entered into the system by the officer. agreement with the builder or any other relevant documents. the sales tax was replaced by the VAT. the applicant-”s number is called and the applicant approaches the desk of a sales-tax officer. the system generates a Tax Identification Number (TIN) Thereafter. Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) Time to complete: 12 days Cost to complete: INR 5. The applicant goes to the Sales-Tax Office and up to the registration counter. At least 2 of the following documents must be submitted: copy of passport. 210 (original) showing payment of registration fee at INR 5000 (in case of voluntary RC) and INR 500 (in other cases). copy of latest paid electricity bill in the name of the applicant. Within 10 minutes. the applicant must wait between 10 and 15 days to receive the VAT registration certificate by mail.6) challan on Form No.

Procedure 12. As per an internal circular. The Provident Fund registration focuses on delinquent reporting. underreporting. and so forth. details of the head office (if the company is a branch of company registered outside the state). The employer is required to provide necessary information to the concerned regional Provident Fund Organization (EPFO) in the prescribed manner for allotment of Establishment Code Number. the application should be supported with such documents as proof of address. if the application is complete in all . throughout India excluding the State of Jammu and Kashmir. details of company registration number under the Indian Companies Act (1956). employing 20 or more persons and engaged in any of the 183 industries and classes of business establishments. the code number is to be allotted within 3 days of submission. No separate registration is required for the employees. or non-reporting of workforce size. The registration authority for the Mumbai area is located at Vikarikar Bhavan. Mazgaon in Mumbai. Register with Employees’ Provident Fund Organization (National) Time to complete: 12 days Cost to complete: No cost Procedure: The Employees Provident Funds and Miscellaneous Provisions Act (1952) applies to an establishment. every employer (not being an officer of the government) is liable to taxation and shall obtain a certificate of registration from the prescribed authority. Register for Profession Tax at the Profession Tax Office (State) Time to complete: 2 days Cost to complete: No cost Procedure: According to section 5 of the Profession Tax Act. Depending on the nature of the business. certificates under any other act. Nevertheless. The applicant fills in an application and is then allotted a social security number. all eligible employees are required to become members of the Fund and individual account number is allotted by the employer in the prescribed manner. Provident Fund registration is optional if the workforce size is not more than 20.Procedure 11. company deed. The company is required to apply to the registering authority using Form 1.

However. . The Employee-”s individual insurance is a separate process that is initiated upon the employer-”s registration. Form 01 must be submitted by the employer for registration. The employer is responsible for submitting the required declaration form and employees are responsible for providing correct information to the employer. An online application facility is not provided so far. As per the Employees’ State Insurance (General). Here are those articles that you may find extremely useful in your quest to do business in India.respects.containing the Code Number is mailed to the employer and that takes an additional couple of days. The employee temporary cards (ESI Cards) are issued on the spot by the local offices in many places. Register for medical insurance at the regional office of the Employees’ State Insurance Corporation (National) Time to complete: 9 days Cost to complete: No cost Procedure: Registration is the process by which every employer/factory and every paid employee is identified for insurance purposes and their individual records are set up for them. in many cases applicants have received the intimation letter with the code number in 12 to 15 days. It takes 3 days to a week for the Employer Code Number to be issued. We also did a series of posts about the legal information of doing business in India in a 4 part series. The-” “intimation letter””. The temporary cards are valid for 13 weeks from the date of the employees’ appointment. Procedure 13. It takes about 4 to 5 weeks to get a permanent ESI card.