» INDIAN SCENARIO - SETTING UP A COMPANY IN INDIA
SETTING UP OF COMPANY AND COMPLIANCES
Foreign investors may either incorporate a private company or a public company for the purpose of incorporation of the company. The party has to submit to the Registrar of Companies (ROC) along with the application for incorporation the Memorandum and Articles of Association in addition to other necessary prescribed documents.
The Memorandum of Association stipulates the constitution and objects of the company. The Articles of Association contains the rules and regulations of the company for the management of its affairs.
After examining the documents the Registrar of Companies approves the name of the company and thereafter issues a Certificate of Incorporation. Thereafter a private company becomes entitled to commence its business and a public company after obtaining the certificate of commencement of business from ROC can invite the public for subscription of its shares.
For this purpose, it issues a prospectus which is to be filed with the Registrar of Companies before it can be issued to the public
Submission Of Documents By Foreign Companies
The foreign company which has established a place of business within India shall, within 30 days of the establishment of the place of business is required to deliver to the Registrar of the Companies for registration :-A certified copy of the Memorandum and Articles of the company or any other instrument constituting or defining the constitution of the company.