Starting a private limited company in India involves many steps and documents. For NRIs, understanding these requirements is the key to their success.

Eligibility and Documents

Before you start, make sure you meet the basic eligibility and have the required documents like identity proofs, address proofs and passport-size photographs.

Steps Involved 

Digital Signature Certificates (DSC)

DSC is required to file electronic documents with the MCA (Ministry of Corporate Affairs). Apply for DSC through certified agencies in India by providing the necessary identity and address proofs.

Director Identification Number (DIN)

DIN is mandatory for directors of Indian companies. Apply online on the MCA portal by submitting the required identity and address proofs.

Name Approval

Choose a unique company name that is not similar to any existing companies. Apply for name approval through the RUN (Reserve Unique Name) form on the MCA portal.

Memorandum of Association and Articles of Association (MOA & AOA)

MOA defines the scope of the company and AOA defines the internal management rules. Make sure your MOA and AOA are complete and have all the necessary clauses.

Incorporation

Submit incorporation documents including MOA, AOA, declarations and address proofs through the SPICe+ (Simplified Proforma for Incorporating Company Electronically) form on the MCA portal.

PAN and TAN

Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) are required for tax purposes. Apply for it through the integrated SPICe+ form during the incorporation process.

Foreign Direct Investment (FDI)

NRIs can invest under automatic route in most of the sectors. Each of these sectors are subject to sector-specific conditions. Ensure FDI compliance and report to the Reserve Bank of India (RBI) within 30 days of receiving share application money and within 30 days of issuing shares.

Bank Account

Open a current account in the company’s name to manage the business transactions. Ensure all KYC is done.

Post Incorporation Compliances

Appoint an auditor within 30 days of issuing share certificates to subscribers and comply with all statutory requirements of GST, EPF, ESIC etc. File annual returns and financial statements with MCA.

Documents Required

For Digital Signature Certificates (DSC)

• Identity proof (Passport, PAN Card)
• Address proof (Utility bill, bank statement)
• Passport size photographs

For Director Identification Numbers (DIN)

• Identity proof (Passport, PAN Card)
• Address proof (Utility bill, bank statement)
• Passport size photographs

For Name Approval

• Proposed company name
• Brief description of the business

For Incorporation

• MOA and AOA
• Identity and address proofs of directors and shareholders
• Declaration by directors
• Registered office proof

For PAN and TAN

• Identity and address proofs of directors
• Incorporation certificate
• Registered office proof

For FDI (Foreign Direct Investment)

• Board resolution for FDI
• KYC of foreign investor

For Bank Account

• Incorporation certificate
• PAN and TAN of the company
• Identity and address proofs of directors
• Board resolution for opening the account