WOS or JVC in India can be incorporated as a Private Limited Company or a Public Limited Company.
Governing Authority– Governing Authority for the incorporation of Private Limited or Public Limited Company in India is the Registrar of Companies.
Governing Law– The Companies Act, 2013 and the rules and regulations made there under.
Apart from the difference from the compliance point of view, the basic difference between a Private Limited Company and a Public Limited Company are as follows:
Particulars | Public Company | Private Company |
Minimum Directors | 3 | 2 |
Minimum Subscribers | 7 | 2 |
Minimum Authorized Capital | Nil | Nil |
Eligibility Criteria-
Foreign Direct Investment in India in WOS or JVC is permitted under the following two routes:
Indian companies can issue shares under the automatic route up to 100% of their paid-up capital in those sectors wherein Foreign Direct Investment is permitted up to 100%.
In certain other sectors, foreign investment is limited to a prescribed percentage ceiling.
All other cases where the automatic route is not applicable require prior specific approval from the Foreign Investment Promotion Board (commonly referred to as FIPB).
Time Period- There is no particular time limit as to the duration of Private/Public Limited Company. These entities shall carry on their business in India till the time they wound under the provisions of The Companies Act, 2013.
Permitted Activities-WOS/JVC can carry on the business activities as permitted by Foreign Direct Investment policy of India.
Procedure:
Establishment of WOS/JVC in India
STEP-1
The following issues are to be decided up-front by the parent company: –
(Minimum 2 for Private Limited Company and 3 for Public Limited Company)
*One of the Proposed Directors should stay in India for at least 182 days during the financial year)
(Minimum 2 for Private Limited Company and 7 for Public Company)
(In-Principle Approval of appropriate authority/institute shall be required in case of certain objects)
(Name of the Indian City/State, where the Company proposes to establish its Registered Office once the company has been incorporated.)
STEP-2
Preparation of Documents: Basic documents required are
(Applies to those shareholders who act through nominees)
STEP-3
Filing of documents with the relevant Government authority and subsequent follow up.