By: Saurabh Kumar | February 18, 2017


 

One of our potential client wants to start his own company in India and below is the transcript of the startup legal aspects involved to form his own company and application of various start-ups laws.

 

1) Is it possible to run a company(Profit and Nonprofit) from US ?

Yes

 

2) What are the legal restrictions and/or documents required ?

ID/ Voter ID/ Passport/ Bank Statement etc.

 

3) How many co-founders are required primarily to form a profit and non-profit company ? Is it different for a product based or service based company ?

In any case minimum 2

 

4) Having a local office space compulsory or can be done remotely(Virtual assistance/work) ? You will need an local address for registered address, it can be your home address, shared office space

 

5) I will be using my personal funds as capital for the company. How does taxation apply ? (PMs 3 year tax free policy for start-ups. How does it apply ?)

There is no taxation on the capital, and upto INR 9 Lakhs, PM’s tax policy applies only for after a particular type of certification as a ‘start-up’ as defined under the policy. 

 

6) Does the same procedure for a single company apply for multiple companies(Parent, Children company structure ?)

Every company is an individual entity. The holding company can own major shares in the business and the process of formation is same.

 

7) I am in my F1-OPT status in US currently, when can I establish a branch in US (timeline) ?

You don’t need to be an US Citizen to form a company in US. We can form your US company as well from India through our affiliates.

 

8) How does patent filing, trademark, LLCs, copyrights processes work in India for Start-Ups ?

LLC is a type of business, equivalent to LLP in India. TM and Patent can be obtained through applications filed with respective authorities. We have internal capabilities to do the same.

 

9) Does India support dual citizenship ? Is it possible to hold both US and Indian Citizenships ? Any legal restrictions on this matter ?

Not Possible

10) What is the procedure to hire employees, equivalent to NDAs here in India, legal filing to

prevent theft, damage, replication of work by the employees ?

We will provide all the documentation on this regards.

 

11) What is the legal fee structure and the timeline you follow to finish the legal filings for the company? What details, forms, docs do you require from me and my partners ?

Incorporation will cost you around INR 18K for a private limited company, including CA, Lawyer and government fees. For documentation we will coordinate on an individual basis

 

12) This would be a question to a banker but if you have any info. on this please do reply on this one.  When can I open a bank account (single or joint) for the company, what company docs are required for this?

Once the incorporation is done, you can open a bank account easily with the incorporation documents (you will also need a Board Resolution).

Have any more query? Reach out to us at +91 959 131 4477 or legal@mycounsel.in

Category: Legal 

Tags: legal advice, start up