FAQ - Start business operations in India

  • Who should use PEO services?
  • How long does it take to start PEO?

    Once a foreign company has identified the resources that would be required to expand to a new geography and the PEO services that it would like to avail of while doing so, it can kick start its business operations in 24 hours.

  • What are the documents required to register a ‘Private Limited’ company in India?
    The following documents are required to register a ‘Private Limited’ company in India:
    • Proof of identification for all Directors and shareholders - Pan Card /Aadhar Card / Diving License / Passport
    • Proof of address for all Directors and shareholders - Latest Telephone Bill / Electricity Bill / Bank Account Statement
    • Proof of address of registered office - Latest Electricity Bill / Property Tax Receipt / Water Bill / Maintenance Bill / Sale Deed / Letter or NOC from the landlord with his / her permission to use the office as the company’s registered office
    • DIN and DSC of all the Directors
  • What is the procedure for foreign companies to start business in India / How can I start a branch office in India?

    Foreign companies can set up a permanent entity in India in the form of a subsidiary. For all practical purposes, the subsidiary or the branch office will be treated as a local company in India and will have to comply with all local regulations and compliances.

  • What are the mandatory financial and legal compliance requirements for a subsidiary / foreign company in India?

    All local regulations and compliances that are applicable to any Indian company are also applicable to foreign companies having a branch office or a subsidiary in India.

  • What are PEO services?
  • What does a PEO offer?

    A PEO offers cost effective services pertaining to HR, payroll, insurance, benefits and risk management to foreign companies seeking global business expansion. Some PEOs like Remunance go a step further to provide extended services like time and attendance, recruiting, employee training, and performance management.

  • Is Remunance a PEO?
    Yes. Remunance is a licensed professional employer organization (PEO) / employer of record (EOR) who can hire staff on behalf of foreign companies in absence of their own legal entity in India. 
    Remunance’s PEO solutions can help you:
    • Transfer your existing staff to India or hire resources from India
    • Onboard your workforce for you in India and help begin your operations within days
    • Ensure mandatory compliance of your staff as per Indian laws
    • Cover your employees under a group insurance policy
    • Execute monthly payroll, compliances and taxation of your employees through accredited professionals
    • Get guidance on the required visa procedures and paperwork for smooth processing of visa and work permits
    • Accurately manage relocation expenses and reimbursements as necessary 
  • What is an International PEO?

    A Professional Employer Organization (PEO) is an excellent starting point for small, medium and growing businesses seeking international market expansion to venture into a new geography. 
    By definition, an International PEO is a company that acts as a legal employer on behalf of a foreign company for its employee in another country while the employee continues to work for the foreign company. The PEO agency takes care of cost-effective services for HR, payroll, benefits, and risk management. Some agencies like Remunance go a step further to provide extended services like time and attendance, recruiting, employee training, and performance management.

  • What are the advantages of PEO over Outsourcing?
    Choosing to hire a team in India through a PEO versus an outsourcing agency has following advantages:
    • The hiring process is transparent and collaborative. The team is hired based on your requirements in India and you are involved at every step of the process.
    • The team is dedicated to work only for you with direct reporting and periodic interactions
    • The employee policies are mutually decided by the PEO agency and you in order to incorporate the same company culture as your office abroad
    • You get the undivided attention of a dedicated workforce and have better control over their deliverables and efficiency
    • It helps you test the waters before establishing your own subsidiary in India for subsequent business expansion
    • The trained and experienced team which is hired for you by the PEO can be seamlessly transferred to your own subsidiary in India at a later stage whenever it is formed
  • Can foreigners start a company in India ?
  • How can a company operating outside India, start a business in India and retain 100 % ownership?

    A company outside India can form a wholly owned (100%) subsidiary in India. There has to be one local Indian Resident Director.

  • What is the procedure for foreign companies to start business in India / How can I start a branch office in India ?

    Foreign Companies can set up a company in India as its subsidiary.
    For all practical purposes, the branch will be treated as local company and will have to comply with all the local laws and formalities.

  • What are the mandatory financial and legal compliance requirements for a subsidiary / foreign company in India ?

    All local laws will be applicable to foreign companies having subsidiary/ offices in India.

  • What is the minimum investment requirement to form a company in India?

    For any company other than ‘Non-Banking Financial Company’ a minimum amount of INR 1 lakh in the form of share capital is required.

  • What is the checklist for the formation of a private limited company in India?

    For setting up a subsidiary in India, you will need:
    Minimum 2 directors, out of which needs to be an Indian resident (all directors will need Director Identification Number and Digital Signature).
    Finalise place of business as a registered office.
    Finalise 3 name options with justifications.
    Decide main objective, i.e. the area of business/focus activity of business of the company
    Holding company will be required to sign the incorporation documents in its own country and there has to be apostille for the same.

  • Is it easy to set up a company in India?

    Yes. Mere setting up of a company (other than NBFC or negative list) is a straightforward process and not at all time consuming, if you have someone as trustworthy as us as your partner.

  • In how many months can a company become operational?

    Based on the area of work/ activities and approvals required, the minimum period will be 4 weeks is required. It may take upto maximum 24 weeks.

  • Is it easy to wind up a company?

    Winding up of a private limited company is a complex process and takes a long time, amounting to a year or two. Clearance from various government departments is also mandatory .

  • Can an Indian subsidiary set up offices in different states of India?

    Yes, any company can have its offices in any part of India by complying all the local rules as applicable.

  • What is RBI and what is its role?

    Reserve Bank of India is the apex bank of India. All foreign Investments are subjected to RBI’s auto/ specific approvals.

  • Which laws are applicable for Indian subsidiary/ office of a foreign company operating in India?

    Employee related laws - provident fund, professional tax, employee state Insurance, labour welfare, salary TDS, minimum wages, bonus etc.
    Other commercial laws - Companies’ Act, FEMA, Income Tax, GST.

  • What sort of annual audits will be conducted in India?

    Indian subsidiary/ office of a foreign company operating in India will be subjected to statutory audit under Companies Act&Income Tax Act, GST Audit, and Transfer Pricing Audit.

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