Self-Employment in India


 

 

Foreigners opening business in India need to be in a corporation with locals as approved by the government. In some cities, certain restrictions also apply. To avoid legal difficulties, it is best to seek legal advice to be aware of important issues such as restrictions and eligibility. The process begins with creating a proposed name of the company and seeking approval from the Registrar of Companies.

A Memorandum of Articles of Association must be issued by the ROC and printed, after which an application addressed to the Superintendent of Stamps must be submitted to obtain a Memorandum of Association and Articles of Association.  

All of these documents have to be submitted to the Registrar of Companies with a registration fee to be paid for the granting of the Certification of Incorporation. A company seal must then be obtained and a Permanent Account Number issued by the UTI Investors Services Limited. A Tax Account Number for income taxes must also be obtained, after which the company will be registered under the Shops and Establishment Act. Registration for value added tax before the Sales Tax Officer where the company is located will also be needed followed by registration for Profession tax with the Employees' Provident Fund Organization and the ESIC (medical insurance). Then an application for Government Approval for foreigners may be filed. 

There are many opportunities for business in India, which many foreigners will find lucrative, including export data servicing, software development and e-commerce exports. Expats are allowed to open bank accounts in India and accept cash from abroad. They are also allowed to send abroad at least 75% of their net earnings.