Company Formation in India or registered in India are governed by the Companies Act 2013.

Shareholders and Directors

• Foreign nationals may establish a corporation in India and own 100% of the foreign equity; this is contingent upon the industry in which the company plans to operate and requires approval from the Foreign Investment Promotion Board (FIPB) or Reserve Bank of India (RBI).
  Foreign nationals are permitted to serve as directors in Indian companies, but in order to incorporate in India, a local director must also be appointed.

  A definite quantity must be used to express shares. It is not allowed to have “bearer” or “no par value” shares. Subscription shares have to be expressed in Indian rupees.

Accounts & Auditors

Each year at its AGM, every company is obliged to designate an auditor. According to the Institute of Chartered Accountants of India Act of 1949, an auditor ought to be fully independent of the business. The company’s audited financial statements are a useful tool for a number of stakeholders, including revenue authorities, bankers, investors, and creditors.

Public Filings

Upon incorporation and any changes subsequently, the names and personal details of the directors and secretary, register of charges, share capital, registered office address, etc., must be reported with the Companies Registry for public scrutiny.

Annual Meetings

An annual general meeting (AGM) must be held once in every financial year and not more than 6 months after the end of financial year. However, a company need not hold its first AGM until 9 months of the date of closing of first financial year.