How To Register A Company In India From France?

Can a French National Register a Company in India?

Yes, a French national can legally register a company in India under the Foreign Exchange Management Act (FEMA) and the Companies Act, 2013. The Indian government permits 100% foreign direct investment (FDI) in most sectors through the automatic route. This means prior approval is not required for setting up most types of companies.

French citizens can become directors or shareholders in Indian companies, either as individuals or through a foreign entity. However, at least one director must be an Indian resident as per legal requirements. Proper documentation and regulatory compliance are essential to complete the process successfully.

Best Business Structures for Foreigners in India

Foreign nationals, including French citizens, can choose from several company types based on their business goals and investment plans. Below are the most common structures suitable for foreigners:

• Private Limited Company: This is the most preferred option for foreign founders. It allows limited liability, separate legal identity, and 100% foreign ownership in most sectors. It also helps build credibility with investors and clients.
• Limited Liability Partnership (LLP): An LLP offers flexibility like a partnership but with limited liability protection. It is ideal for professional services and small businesses with fewer compliance needs than a Private Limited Company.
• Wholly Owned Subsidiary: A French company can register a 100% owned subsidiary in India. This model is perfect for expanding existing overseas businesses and giving complete control over Indian operations.
• Joint Venture with Indian Partner: This structure involves collaborating with an Indian company or individual. It is useful when local market knowledge, infrastructure, or regulatory support is needed.

List of Documents Required to Register Company in India from France

To register a company from France, both personal and business-related documents must be submitted digitally. Below is the category-wise list:

1. From French Directors and Shareholders:

• Passport (notarized and apostilled)
• Address proof (like utility bill or bank statement, not older than 2 months)
• Passport-size photograph
• Email ID and mobile number
• Director’s consent (Form DIR-2)

2. For Indian Registered Office:

• Electricity or utility bill (not older than 2 months)
• Rent agreement or ownership proof of premises
• No Objection Certificate (NOC) from property owner

3. Other Incorporation Documents:

• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Declaration and affidavits as per MCA norms
• Board resolution (if the shareholder is a company)

Step-by-Step Guide to Register Company in India from France

The registration process can be completed online with proper documents and coordination. Here’s how it works:

• Step 1: Apply for Digital Signature Certificate (DSC): All directors need a DSC to sign incorporation documents digitally. It can be obtained remotely with identity and address proof.
• Step 2: Get Director Identification Number (DIN): DIN is required to become a director in an Indian company. It is applied through the SPICe+ form during incorporation.
• Step 3: Choose and Reserve Company Name: Submit a name reservation request through the RUN service on the MCA portal. The name should be unique and compliant with MCA rules.
• Step 4: File SPICe+ Form for Company Incorporation: SPICe+ is a combined form that covers company registration, PAN, TAN, EPFO, ESIC, and GST (if needed). All incorporation documents are filed here.
• Step 5: Prepare and Submit MoA and AoA: These documents define your company’s objectives and rules. For foreign subscribers, apostilled or notarized versions may be needed.
• Step 6: Get PAN, TAN, and Other Registrations: After company approval, PAN and TAN are auto-generated. GST registration can be applied based on business activity.
• Step 7: Open a Bank Account in India: Once the company is registered, an Indian current account must be opened in the company’s name to start operations.

Compliance Requirements After Registration of company in India from France

Once your company is registered in India, you must follow certain legal and financial compliances to stay in good standing with Indian authorities:

• Annual ROC Filings: Every company must file annual returns and financial statements with the Registrar of Companies (ROC), even if there is no business activity.
• Maintenance of Books of Accounts: Proper books must be maintained as per Indian accounting standards, either electronically or physically.
• Statutory Audit: A statutory audit is mandatory for all companies, and the first auditor must be appointed within 30 days of incorporation.
• Income Tax Return (ITR): An annual ITR must be filed with the Income Tax Department, whether the company made a profit or not.
• GST Registration & Returns (if applicable): If your company is involved in the supply of goods or services above the threshold limit, GST registration and monthly/quarterly returns are required.
• FDI Reporting under RBI/FEMA: If foreign investment is brought into India, filings such as FC-GPR and FLA return must be made under RBI norms.
• Board Meetings and Resolutions: At least two board meetings per year must be conducted and documented, even for small or single-director companies.

Taxation Rules for French-Owned Indian Companies

Foreign-owned companies in India are subject to Indian tax laws, but they can benefit from specific provisions under the India-France tax treaty.

• Corporate Income Tax: Indian companies with foreign ownership are taxed like any other domestic company. The standard corporate tax rate is 22% (plus surcharge and cess), subject to conditions.
• Dividend Distribution Tax: DDT has been abolished. Now, dividends are taxable in the hands of shareholders, and applicable TDS must be deducted while remitting profits to France.
• India-France DTAA (Double Taxation Avoidance Agreement): This treaty helps avoid double taxation. Taxes paid in India may be claimed as credit in France, subject to treaty conditions.
• Withholding Tax: Payments such as royalties, interest, or technical fees made to the French parent may attract withholding tax in India. Rates vary but may be reduced under DTAA.
• Transfer Pricing Regulations: If the Indian company transacts with its French parent or related entities, arm’s length pricing must be ensured and documented properly.

How to Repatriate Profits to France Legally?

Repatriation of profits by a foreign-owned company is allowed under Indian laws, provided certain compliance steps are followed.

• Via Dividends or Royalties: Profits can be remitted to France as dividends, royalties, or management fees. TDS and FEMA rules must be followed.
• Compliance with FEMA & RBI: All remittances must comply with the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines. Filing of forms like A2 and relevant supporting documents is mandatory.
• Board Resolution and Documentation: Proper board approval, audit confirmation, and declarations are required before profit remittance.
• Tax Clearance: Withholding tax must be deducted before transferring funds. A certificate from a Chartered Accountant is often needed.

Common Challenges Faced by Foreign Nationals & How to Overcome Them

Registering a company from France is straightforward but not without its practical hurdles. Below are common issues and ways to manage them:

• KYC & Documentation Issues: Apostille, notarization, or embassy attestation may be required for foreign documents. Working with a professional firm helps avoid rejections.
• Indian Director Requirement: Indian law requires at least one resident director. You can appoint a nominee director on your behalf through a service provider.
• Language and Legal Differences: Indian compliance language and formats can be hard to interpret. Having a local legal partner ensures accurate filing and timely updates.
• Bank Account Setup Delays: Some banks require in-person verification. Choosing banks that allow video KYC or working through recommended channels speeds up the process.
• Timeline & Follow-ups: Coordination across time zones and departments can delay filings. Assigning a dedicated professional team can ensure smooth tracking and communication.

How EbizFiling Can Help ?

EbizFiling offers complete support to register your Indian company from France with ease:

• End-to-End Registration: From DSC, DIN, name approval to SPICe+ filing and incorporation.
• Document & Legal Support: Drafting of MoA, AoA, and assistance with apostilled documents.
• Tax & Compliance: Help with PAN, TAN, GST, FDI compliance, and annual filings.
• Bank Account Setup: Guidance on choosing banks and completing account opening.
• Remote Coordination: Smooth execution without the need to travel to India.

Conclusion

Register a company in India from France is a legally recognized process that can be completed online with expert assistance. With the right structure and compliance, French entrepreneurs can establish and operate their business confidently. EbizFiling supports you at every step with clarity and precision.

Suggested Read :

Branch Office and Indian Subsidiary

How to start a Subsidiary Company in India?

Foreign Subsidiary Company Compliance in India

Register Company by Foreigner Without Indian Partner

Foreign Subsidiary Company Compliance in India

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