Foreign Companies

   Foreign investors can enter into the business in India by registering themselves with Registrar of Companies (ROC), New Delhi within 30 days of setting up a place of business in India or as an Indian company in the form of a Joint Venture and wholly owned subsidiary. Specific approval of Reserve Bank of India is also required.

   For starting a new project, a number of approvals and/or clearances are required from different authorities like Pollution Control Board, Chief Inspector of Factories, Electricity Board, Municipal Corporations, etc.

   The Foreign Exchange Regulation Act, 1973 has been replaced by the Foreign Exchange Management Act, 1999 with effect from 1^st June 2000. This Act helps to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments as well as promotes the orderly development and maintenance of foreign exchange market in India .

   Foreign nationals working in India are taxed only on their Indian income and income received from sources outside India . However if any extra income is received in India , it will be considered for taxing. Certain tax exemptions are available and one may consult the specialist accountant

   A foreign national may open bank accounts in India and receive funds from abroad as well as allowed to repatriate 75 percent of his net after-tax earnings.  This can be done only after his employment is approved by the government and the exchange control authorities.

   Any company starting a business in India shall go through the following in detail

1.      Employee’s State insurance act

2.      Workmen compensation act

3.      Minimum wages act

4.      Employee’s provident fund

5.      Gratuity

6.      Bonus

They may also need to study the Employee Unions.

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