CASE STUDY: Incorporation
Establishing a Wholly Owned Subsidiary in India
Client Overview
A UK-based company sought the expertise of XL Financials to facilitate the incorporation of a Wholly Owned Subsidiary in India. With specific name preferences provided by the client, our engagement began with a thorough examination of name availability with the Registrar of Companies (ROC).
Challenges
The company faced unexpected problems when trying to transfer money in foreign currency from the holding company into India to subscribe to the shares in the Indian subsidiary. Issues like foreign currency transfers, KYC, and document-related matters caused difficulties, making it seem impossible to get the money.
Our Approach
Our FEMA compliance team worked closely with the client company and Authorized Dealer banks to smoothly address and resolve the challenges. Through collaborative efforts, the client successfully arranged the required funds, ensuring the timely launch of their business as planned.
Key Milestones
Name Availability Check
- Conducted a meticulous check with the ROC to ensure the availability of the suggested company names.
- Facilitated a seamless process for the client to choose an available and suitable name.
- Prepared all requisite e-Forms for incorporation, including the Memorandum and Articles of Association.
- Electronically submitted the documentation to the ROC for review and approval.
Incorporation and First Board Meeting
- Upon receiving the Incorporation Certificate from the ROC, formalized the First Board Meeting.
- Drafted minutes confirming the incorporation, new appointments, and allotment of shares to subscribers.
Statutory Books and Registrations
- Produced comprehensive company registers (directors, secretaries, and members).
- Completed mandatory registrations, including payroll-related, direct tax, indirect taxes, Software Technology Park of India, and RBI-related documentations.
Results
XL Financials successfully facilitated the entire process, from name availability checks to the establishment of a fully compliant Wholly Owned Subsidiary in India. The client’s incorporation journey was not only efficient but also thorough, ensuring adherence to statutory requirements. Through meticulous attention to detail and proactive compliance management, we enabled our client to seamlessly establish a Wholly Owned Subsidiary, laying the groundwork for their successful operations in the Indian market.