In the past few years, a lot of companies in the US have adopted a China Plus One Strategy. In simple words, the strategy is moving the base of manufacturing or supply from China to another Asian country. Out of all the options available to international firms, India comes out to be the clear winner.
It is why one of the top advocacy group based in the US stated that approximately 200 American businesses are thinking from switching from China to India. The reason for it is twofold. One, China is no more a hub of an economical labor force that helps businesses reach economies of scale faster. The cost of labor is almost on par with other western countries. Two, India has some significant advantages such as:
• India is home to one of the youngest and active population in the world, which means there is no shortage of labor.
• The massive workforce is available for work at a fraction of a cost when compared to China.
• The advent of the present government has created a unique set of opportunities for US-based companies. The issues that pilfered India past are slowly being resolved. Problems like acquiring land, clearing customs, Company Registration, etc. are no more hindrances to starting a business in India.
How To Register A Company In India?
To give you a more comprehensive picture of how easy it is to start a company in the country, a step by step of what is required and which conditions a business needs to fulfill is given below.
• Under the Companies Act, 2013, foreign residents can legally open a company in the country as long as they comply with the laws. The first step is to decide the kind of business entity. It will define your business model and structure. Some options available are:
o Partnership
o Private Limited Company
The best option is either a Limited Liability Partnership or a Private Limited Company because they have the least number of formalities.
• The conditions that need have to be fulfilled to start a company in India from the USA are:
o Have on resident Indian director so that you have all the documents required to fill KYC details. These details will get you a DSC and DIN number.
o Find out which sector your business comes in. If it is within the automatic route, you won’t need approval from Reserve Bank of India. If it belongs to FDI, you might need permission from RBI or Ministry of Central Government
o Fill the Name Application and prepare the MoA and AoA of the company.
o Get all your documents for company registration. Keep in mind that the documents have to be notarized.
• If you are residing in the US, these are the documents you will need to register a business in India:
o A valid passport.
o A driving license from the country of issue.
o Voter ID from the country of issue.
o A social security number.
o Complete bank statements.
o A few photographs.
o A resident permit that is issued by the Indian Embassy.
o A copy of the valid visa issued to the foreign national. In this case, it will be a business visa.
The documents explained above are required to be submitted by an individual residing in America and wishing to open a firm in India. In case a foreign business wants to open a company in the country, the documents are slightly different, but the process is the same.
o A board resolution of the foreign company.
o A copy of valid address proof of an international company.
o A certificate of incorporation to demonstrate that the business is legally incorporated.
We used opening a company in India from the USA as an example because it is the first query that pops in the mind when you think of switching from China to India. The hope is it gave you a better understanding of how easy it has become for US-based organizations to start their business in India. From cheap labor to lower the cost of setting up a business, the advantages are numerous.

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