Is it possible for a foreigner to form a company in India????

pantelis · May 31st, 2008, 23:12

Hi there,i saw the many different threads on this matter{at a glance}but i'd like to ask you the following:
is it possible for a complete foreigner to form a company {e.g lease a shop } and stay permanently in India???The specific area is Delhi.What are the regulations????Approximately how much is the lease for a shop[groundfloor} of 40-60sq.meters per month in Connaught Square or near Connaught?
Please any advice will be really appreciated.

pantelis · Jun 2nd, 2008, 02:22

why don't i get any replies?????????

dzibead · Jun 2nd, 2008, 02:31

I don't think "leasing a shop" constitutes "forming a company" in India. The short answer to your question is, no, you can't just lease commercial space and start doing business and use that as a basis for staying in India long-term. For more a more detailed response, I suggest that you consult both commercial and immigration lawyers in India.

Radjesh · Jun 2nd, 2008, 02:33

Maybe because no one has done this before... Hang on, someone might come along

Haylo · Jun 2nd, 2008, 02:35

Quote:

Originally Posted by pantelis

why don't i get any replies?????????

I am sure that the answers to all but the last of your questions would be in the threads you've already referred to.

As for the last question, perhaps nobody on this forum has leased a 40-60 m2 ground floor shop in Connought Square recently enough to give you even an approximate figure?

Edited to add: Although given the breadth of expertise on this forum, nothing should surprise me!

dzibead · Jun 2nd, 2008, 10:58

Take a look at these links for information about forming a company in India.
http://www.atrium-incorporators.com/...ormation. htm
http://finance.indiamart.com/new_ventures/cf_intro.html
http://www.yfs1.com/2006/forming-a-c...-in-india.html

It's certainly not just a matter of leasing space and opening a shop, and even a little "Googling" would have told the OP that.

edwardseco · Jun 2nd, 2008, 12:29

Dzibead can always be counted upon to get the details

..

dzibead · Jun 2nd, 2008, 22:29

Quote:

Originally Posted by edwardseco

Dzibead can always be counted upon to get the details

..

Once in a while my legal training does come in handy!

pundabee · Jun 2nd, 2008, 23:09

Quote:

Originally Posted by dzibead

For more a more detailed response, I suggest that you consult both commercial and immigration lawyers in India.

I would advise against this. A foreign national wanting to incorporate an Indian company needs only one person: a company secretary who is experienced in incorporating foreign owned Indian companies. The company secretary will do all the paperwork, and ensure that everything is done legally.

Paradoxically, the easy part of starting a business in India is the company incorporation. It is what follows that will (as in it is unavoidable) cause major headaches.

My advice to anyone wanting to incorporate an Indian company is that the most important resource is a well functioning brain, and the ability to deal with and understand large amounts of paperwork.

dzibead · Jun 3rd, 2008, 02:42

It's true that a Company Secretary would be able to do this, but the one consulted would have to be familiar with setting up a company wholly owned by a foreign national and would have to be familiar with immigration issues faced by a foreign national in the OP's position, who simply seems to be looking for a way to stay in India long-term. Company Secretaries know about incorporation and compliance with corporate regulations, but may not be up to speed on the immigration issues that someone in the OP's position would face. The bottom line is that the OP's idea of just leasing space and starting to conduct some kind of business (of what kind? retail?) and using this as a mechanism for staying "permanently" in India is a non-starter. I strongly suspect, especially based on some of the OP's other posts, that he has no interest in going through the process of setting up an actual Indian company, but is principally looking for a way to stay in India long-term and hoped that leasing space and opening a shop would allow this.

And "a well functioning brain, and the ability to deal with and understand large amounts of paperwork" -

- yeah, well, pretty essential, and that could be a problem ...

Nick-H · Jun 3rd, 2008, 03:32

Take a look at this thread where Mira4bai4 describes some of the practicalities and hassles involved in his own experience of setting up a company here.

dzibead · Jun 3rd, 2008, 03:44

I think I'd rather stick my hand in the whirling blades of an electric fan than go through this!

But that's just me ...

Nick-H · Jun 3rd, 2008, 03:52

Yep. After you with the fan!

edwardseco · Jun 3rd, 2008, 06:00

Whew! And I thought it was challenging for NRIs..

pantelis · Jun 9th, 2008, 02:31

has to do with food & it has NOTHING to do on staying long term in India.

May 31st, 2008, 23:12	#1
pantelis Hello Join Date: Oct 2004 Location: Greece Posts: 282	Is it possible for a foreigner to form a company in India???? Hi there,i saw the many different threads on this matter{at a glance}but i'd like to ask you the following: is it possible for a complete foreigner to form a company {e.g lease a shop } and stay permanently in India???The specific area is Delhi.What are the regulations????Approximately how much is the lease for a shop[groundfloor} of 40-60sq.meters per month in Connaught Square or near Connaught? Please any advice will be really appreciated. __________________ Last edited by pantelis : Jun 2nd, 2008 at 02:21.

Jun 2nd, 2008, 02:22	#2
pantelis Hello Join Date: Oct 2004 Location: Greece Posts: 282	No reply??? why don't i get any replies?????????

Jun 2nd, 2008, 02:31	#3
dzibead Maha Guru Member Join Date: Sep 2004 Location: Northern California Posts: 2,077	I don't think "leasing a shop" constitutes "forming a company" in India. The short answer to your question is, no, you can't just lease commercial space and start doing business and use that as a basis for staying in India long-term. For more a more detailed response, I suggest that you consult both commercial and immigration lawyers in India. Last edited by dzibead : Jun 2nd, 2008 at 10:34.

Jun 2nd, 2008, 12:29	#7
edwardseco Maha Guru Member Join Date: Sep 2001 Location: Land that shakes and bakes. Posts: 3,911	Dzibead can always be counted upon to get the details..

Jun 3rd, 2008, 03:32	#11
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,771	Take a look at this thread where Mira4bai4 describes some of the practicalities and hassles involved in his own experience of setting up a company here. __________________ . Just one member of the IndiaMike Mod Team

Jun 2nd, 2008, 02:33	#4
Radjesh Maha Guru Member Join Date: Mar 2007 Location: Chennai Posts: 683	Maybe because no one has done this before... Hang on, someone might come along

Jun 2nd, 2008, 10:58	#6
dzibead Maha Guru Member Join Date: Sep 2004 Location: Northern California Posts: 2,077	Take a look at these links for information about forming a company in India. http://www.atrium-incorporators.com/...ormation. htm http://finance.indiamart.com/new_ventures/cf_intro.html http://www.yfs1.com/2006/forming-a-c...-in-india.html It's certainly not just a matter of leasing space and opening a shop, and even a little "Googling" would have told the OP that.

Jun 3rd, 2008, 02:42	#10
dzibead Maha Guru Member Join Date: Sep 2004 Location: Northern California Posts: 2,077	It's true that a Company Secretary would be able to do this, but the one consulted would have to be familiar with setting up a company wholly owned by a foreign national and would have to be familiar with immigration issues faced by a foreign national in the OP's position, who simply seems to be looking for a way to stay in India long-term. Company Secretaries know about incorporation and compliance with corporate regulations, but may not be up to speed on the immigration issues that someone in the OP's position would face. The bottom line is that the OP's idea of just leasing space and starting to conduct some kind of business (of what kind? retail?) and using this as a mechanism for staying "permanently" in India is a non-starter. I strongly suspect, especially based on some of the OP's other posts, that he has no interest in going through the process of setting up an actual Indian company, but is principally looking for a way to stay in India long-term and hoped that leasing space and opening a shop would allow this. And "a well functioning brain, and the ability to deal with and understand large amounts of paperwork" - - yeah, well, pretty essential, and that could be a problem ...

Jun 3rd, 2008, 03:44	#12
dzibead Maha Guru Member Join Date: Sep 2004 Location: Northern California Posts: 2,077	I think I'd rather stick my hand in the whirling blades of an electric fan than go through this! But that's just me ...

Jun 3rd, 2008, 03:52	#13
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,771	Yep. After you with the fan!

Jun 3rd, 2008, 06:00	#14
edwardseco Maha Guru Member Join Date: Sep 2001 Location: Land that shakes and bakes. Posts: 3,911	Whew! And I thought it was challenging for NRIs..

Jun 9th, 2008, 02:31	#15
pantelis Hello Join Date: Oct 2004 Location: Greece Posts: 282	yes it will be a retail trade shop rather has to do with food & it has NOTHING to do on staying long term in India.

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