Company Incorporation in India – PAN Numbers & Banking
India has emerged as one of the most promising countries for entrepreneurs to set up a business. Foreign investment is among the primary reasons for India's economic progress with many incentives including the Indian government’s decision to allow 100 per cent foreign direct investment in several sectors such as automobiles, construction and real estate. With the Indian economy expected to surpass US $ 60 billion, it’s not hard to see why business people are flocking to open a company in India. Here are some of the other many advantages for a foreign investor:
- Fast paced economic growth that will soon outpace China
- Investor friendly policies and incentive schemes for entrepreneurs
- Low labour costs
- Total labour workforce of nearly 530 million people with strong knowledge of English
- Progressive tax structures
- Reductions on import tariffs
- Robust banking and financial institutions
Couple all that with an amazing railway network that covers over 64,000 km, serving 7,000 freight trains every day and carrying 2.65 million tonnes of goods daily as well as the second largest road network in the world, then you have a solid case for forming a company in India.
What are the requirements for opening a Private Limited Company in India?
- Minimum of 2 Directors, one of which should be an Indian citizen
- Memorandum of Association of the company (MoA)
- Article of Association of the company (AoA)
- After the submission of MoA and AoA to the Registrar of Companies (RoC), a “certificate of incorporation” is issued through which a bank account and PAN number can be obtained.
What is a PAN number?
A PAN number stands for Permanent Account Number. It’s an identification number for tax filing and it is given by the Income Tax Department of the Government of India. It is obligatory before any Indian citizen (even when resident outside India) invests in a company in India or becomes a Director in an Indian company. It is advisable for foreign citizens investing in India to get PAN. Getting a PAN is a simple process that requires only a passport and proof of address.
What’s the next step?
Thanks to our experts in India who specialise in helping foreign businesses to set up in New Delhi and Mubai, Euro Start Entreprises can offer a full incorporation service. This includes obtaining Service Tax Registration; Professional Tax Registration (for the payment of salaries of Employees); TDS (Tax Deduction at Source) Certificate and a Shop Establishment Certificate (Office premises registration). Our company incorporation experts can also help with all the drafting of documents as well as immigration requirements of the employer and employees.
What about banking facilities?
The traditional banking methods in India are rapidly being replaced by the latest banking technology. Due to this and the surge in large individual disposable incomes in the country, the banking sector in India is on a growing trend – set to become the fifth largest banking industry in the world. The Reserve Bank of India and the Government of India have invested considerably to integrate financial services not only in the big cities but also into rural areas.
There are two types of Rupee denominated accounts that a foreign investor can open with a bank in India: An Ordinary Non-Resident Rupee (NRO) Accounts or a Non-Resident (External) Rupee Accounts (NRE Accounts).
For more details on company formation in India, banking or for any further information on PAN numbers or immigration, please call us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.