Fintech Company Business Setup

How to Set-Up Business in India?


The first and foremost for setting up any Business is the Business Idea. One must have a business plan in mind and accordingly decide the format to start the business.


There is following organisation structure available in India to do any business activity:

  1. Sole Proprietorship

  2. Partnership Firm

  3. Limited Liability Partnership (LLP)

  4. One Person Company (OPC)

  5. Private Limited Company

  6. Public Limited Company


However, the most common and best form used by the Foreign National and Foreign Entity is a Private Limited Company. One must determine the size and scope of Business Activity before starting any business activity.

 

What is a Private Limited Company?

 

Private Limited Company is the most prevalent and popular type of corporate legal entity in India. To register a private limited company, two directors are required. Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.

Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

 

Features of a Private Limited Company

-Separate Legal Entity

The main feature of a Private Limited Company is to have a Separate Legal Entity from its Members. Members of the Company may come and go but the Company continues forever.
 

-Easy Registration

The Company can be registered easily by making an application with ROC, department of Ministry of Corporate Affairs.

-Easy Regulations

The companies have to follow the provisions of the Companies Act, 2013 and the private limited companies have been exempted from many regulations of the Act.

-Foreign Direct Investment

Any investment which comes outside India is termed as Foreign Direct Investment (FDI) in India. The FDI can be received only by a regulated entity. A Foreign Entity can easily invest in India by incorporating its subsidiary company in India, owned and controlled by the Foreign Entity. This Entity can be incorporated as a Private Limited Company and the Foreign Entity can start their business activities.

Requirement for a Private Limited Company

-Minimum Two Members/Shareholders (Can be any Foreign Company or any Individual)

-Minimum Two Directors (Have to be Individual)

-Authorized Share Capital (Minimum INR One Lac)

-Paid-up Share Capital (Minimum INR One Lac)

-Registered Office Address (In a city where Company wants to set-up its Business)

-Main Business Activity of the Company (FDI in such business activity must be allowed by the RBI)

Documents Required

 

- Foreign Shareholders (Individual)
 

  1. Passport size photo

  2. Copy of passport

  3. Bank Statement/Electricity/Gas/Telephone Bill (Not older than 2 months) – Address Proof

  4. Form INC-9 (Declaration by Subscriber)

Foreign Entity/ Foreign Company

 

  1. Business Registration Certificate

  2. Following documents of one Authorized Representative of the Company who will be the signing authority for the Indian Company:

    1. Passport size photo

    2. Copy of passport

    3. Bank Statement/Electricity/Gas/Telephone Bill (Not older than 2 months) – Address Proof

    4. Form INC-9

    5. One Board Resolution for appointing the Authorized Representative.

 

NOTE: All the documents should be notarized and apostiled.



Foreign Director

  1. Passport size photo

  2. Copy of passport

  3. Bank Statement/Electricity/Gas/Telephone Bill (Not older than 2 months) – Address Proof

  4. Consent for appointment as Director in Form DIR-2

  5. Declaration by First Directors in Form INC-9
     

NOTE: All the documents should be notarized and apostiled.

 

Registered Office
 

  1. Electricity/Gas/Telephone bill of the Registered Address in India.

  2. NOC by a person in whose name the Bill is issued.

  3. Lease/Rent Agreement

     

Registeration Procedure

-Step 1

  1. Decide 2-3 names for a Company;

  2. Name should be unique and not similar with the name of any Existing Company or having a Trademark;

  3. Apply for name Reservation.

Time: 1-2 working days

-Step 2

  1. Prepare the Documents (Detailed Checklist  be provided by the Caterpillar Team);

  2. Signing of the Documents;

  3. Notarize/Apostile the documents (This will be done by the Client themselves, however Caterpillar Team can assist on the same).

Time: Depends upon the country of registration. This is the crucial step considering the time limit.

-Step 3

  1. Collect all the documents;

  2. Prepare the Digital Signature of the Directors/Subscribers;

  3. Make an Application with the Department.

Time: 2-3 working days

-Step 4

      The Department will issue a Certificate of Registration along with PAN & TAN if the   application filed is found in order.

Time: 2-3 working days

-Step 5

  1. Open a Bank Account

  2. Obtain GST Registration

  3. Receive FDI in the Bank Account

  4. Make further RBI & ROC Compliance and start the Business Activity


Set Up Business Partnerships

Once company is ready you partner with multiple agencies and vendors who provide you support in operating fintech business in India. We will help you to connect with all of these agencies.

- NBFC Collaboration

- Credit Rating Agency

- E-KYC Service Provider

- Payment Gateway for Collection and Disbursement

- SMS and Other Marketing Channels Vendor

- Repayment Collection Agency

- Law Firm

- CPA ( Chartered Accountant)

- Company Secretary

Contact Us

C1307, Pebbles II, Bavdhan Pune, India.

Tel. +91 8830 358214

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