How to Register a Private Limited Company in India for Foreign-Funded Projects?

Hello,

I would like to know a few details on registering a Private Limited Company in India (Joint Venture or Subsidiary company).

1. I want to start a company connected to irrigation of lands, desalination plants, etc.

2. I will have to receive foreign funds into my company account from another foreign company.

3. I will have to pay profit share to the funding foreign company.

4. I want this company to be an Indian company (independent) but should have the above criteria met.

Which type of company registration will be best suited for my needs?

What should I include in the Memorandum of Articles to do such business?

Can I register it as a company in India and then receive foreign funds for operation?

Can I amend any of the clauses in the future to attract funds, and do business - then paying the funding company their profit share (or consultancy charges, etc).

I would also like to know the exact procedures to be followed in the registration process (whether a Digital signature is needed, What documents of proof I should submit for each process, etc).

I wish to know the cost and the number of days required for the whole process if you do this service for me.

Please advise.

You could start the company as a private limited company.

There are two charter documents required for incorporation:

1. Memorandum of Association: contains details of the company's name, capital, location (which State the company's registered office would be located), subscribers (the initial shareholders forming the company), and importantly the Object clause which captures the details for which the company is being formed. Any of these clauses can be changed following the guidelines set under the Companies Act.

2. The Articles of Association is more of an internal guiding by-law. It details how board meetings, shareholder meetings, and share transfers are held/done.

3. Since the filings at the Registrar of Companies are done electronically, you will need a digital signature.

4. You can receive foreign investment. The sectors in which investments are allowed and the percentage of investment allowed are subject to guidelines and may fall under either the Department of Industrial Promotion or under RBI/FEMA.

The incorporation process is not designed to be a do-it-yourself kit. I suggest you seek professional help from company secretaries or chartered accountants. The incorporation would approximately take about 3-4 weeks' time.

Sharda
Novo Juris - Your Legal Team providing services like compliance check, contract check, and more

Hi Sbalaji,

Thank you for the response. It is really helpful.

Do projects related to irrigating lands, desalination plants, construction of dams, etc., come under restricted items for receiving foreign money? Can you provide me with a detailed list of restricted items or a link to a webpage that lists all the items? I searched for this, but not all are included.

Thanks,
Shyam