{"id":529,"date":"2022-06-09T14:57:06","date_gmt":"2022-06-09T14:57:06","guid":{"rendered":"https:\/\/www.bbnc.in\/blog\/?p=529"},"modified":"2022-06-09T14:57:06","modified_gmt":"2022-06-09T14:57:06","slug":"how-to-start-an-mnc-in-india","status":"publish","type":"post","link":"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/","title":{"rendered":"How to Start an MNC in India?"},"content":{"rendered":"<div id=\"pl-529\"  class=\"panel-layout\" ><div id=\"pg-529-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-529-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-529-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<p>MNC stands for Multinational Corporation or Companies. These companies operate in different cities across the globe. Since India has one of the fastest-growing economies, it has recently become a hub for MNCs as labour is so cheap, there are plenty of resources available and govt schemes are so supportive.<\/p>\n<p>MNCs have headquarters located in their home country and <a href=\"https:\/\/www.bbnc.in\/services\/Foreign-Subsidiary-Company.php\">branches<\/a> and factories in host countries. All these branch offices and factories work in coordination with headquarters.<\/p>\n<p>However, a thing to note here is that a company engaged in just import-export can\u2019t be referred an MNC as no FDI has been made by it in the host country.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d3d2e125719\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d3d2e125719\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/#Entry_Mode\" >Entry Mode:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/#Process_of_registration_of_a_company_in_India\" >Process of registration of a company in India:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/#Process_of_After_registration_of_the_company_in_India\" >Process of After registration of the company in India:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/#Conclusion\" >Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Entry_Mode\"><\/span><strong>Entry Mode:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are 2 ways through which MNCs can enter India:<\/p>\n<ul>\n<li>Incorporation of a <a href=\"https:\/\/www.bbnc.in\/services\/private-limited-company.php\">private limited company<\/a>.<\/li>\n<li>Register branch office\/project office\/liaison office.<\/li>\n<\/ul>\n<p>Most MNCs entering India tend to adopt entry mode by incorporating as a private limited company as 100% FDI is allowed in automatic route. Under the automatic route, no special permission is required from the RBI in India.<\/p>\n<p>The second way to enter is, to register branch office\/ project office\/ liaison office where it becomes necessary to take <a href=\"https:\/\/www.rbi.org.in\/\">RBI<\/a> approval.<\/p>\n<p>This way thus requires more cost and time than the incorporation of a private limited company. So, the first method should be chosen by MNC to enter over the second as it\u2019s less complex, time and cost savings.<\/p>\n<h3><strong>Minimum Requirement:<\/strong><\/h3>\n<ul>\n<li>2 directors are required however 3 would be preferable and the maximum can be 15.<\/li>\n<li>Also, at least 1 of the directors should be a resident of India who has lived in India continuously for not less than 182 days.<\/li>\n<li>Address of registered office in India.<\/li>\n<\/ul>\n<h3><strong>Documents Required:<\/strong><\/h3>\n<p><strong><em>For each Director and Shareholder:<\/em><\/strong><\/p>\n<ul>\n<li><strong>Identity proof<\/strong>\n<ul>\n<li>Passport copy (mandatory for foreigners and Indians with passports)<\/li>\n<li>PAN copy (Mandatory for Indians)<\/li>\n<li>In case an Indian does not have a passport:\n<ul>\n<li>Voters ID card<\/li>\n<li>Driving License<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Address proof<br \/>\n<\/strong><\/p>\n<ul>\n<li>\u00a0Anyone of:\n<ul>\n<li>Bank statement<\/li>\n<li>Phone bill<\/li>\n<li>Mobile bill<\/li>\n<li>Electricity bill<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Please note that Address proof documents should not be more than 2 months old.<\/p>\n<p><strong><em>For the registered address:<\/em><\/strong><\/p>\n<ul>\n<li>Rental agreement<\/li>\n<li>NOC from the owner of the property<\/li>\n<li>Utility bill<\/li>\n<\/ul>\n<p><strong>Notarizing and apostilling of documents: (for foreign directors\/shareholders)<\/strong><\/p>\n<ul>\n<li>A passport issued by any country other than India must be notarized and apostilled in that country<\/li>\n<li>The address proof from any country other than India (effectively for foreigners and NRIs) must be notarized and apostilled in that country<\/li>\n<li>Any document signed outside India must be notarized and apostilled in that country.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Process_of_registration_of_a_company_in_India\"><\/span><strong>Process of registration of a company in India:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>1)<em><a href=\"https:\/\/www.bbnc.in\/services\/Digital-Signature-Certificate.php\">Digital Signature<\/a> and Director's identification number<\/em> \u2013 first step is to apply for DIN<strong> (<\/strong>Director Identification Number) and DSC (Digital Signature Certificate<strong>)<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>2) <em>Name registration of the company<\/em> \u2013 remembers that name of the company should not be identical to existing entities or considered undesirable by law.<\/p>\n<p>&nbsp;<\/p>\n<p>3<em>) Signing of MOA (memorandum of association) and AOA (Article of Association)<\/em> \u2013 both Memorandum and Article of Association should be drafted and then duly signed by all members of the company.<\/p>\n<p>&nbsp;<\/p>\n<p>4) <em>Applying for Incorporation in ROC<\/em> \u2013 this step includes filing of the Memorandum and Articles of Association of the Company and various other documents which are duly executed by the proposed directors and shareholders.<\/p>\n<p>&nbsp;<\/p>\n<p>5) <em>Getting incorporation certificate<\/em> - after all the documents have been duly submitted, after checking the incorporation certificate of the company along with the PAN and TAN numbers will be issued by the ministry.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Process_of_After_registration_of_the_company_in_India\"><\/span><strong>Process of <\/strong><strong>After registration <\/strong><strong>of the company in India:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After registration process begins right after the registration process gets completed. This includes getting the required license and registration.<\/p>\n<h4><em><strong>Licenses and registration<\/strong><\/em><\/h4>\n<p><strong>Commencement of Business Compliance -\u00a0<\/strong>Company has to file for a certificate of commencement of business mandatorily within 180 days of the incorporation.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>GST Registration - <\/strong>Goods and Service Tax (<a href=\"https:\/\/www.bbnc.in\/services\/GST-Registration.php\">GST<\/a>) Registration is mandatory if<\/p>\n<ul>\n<li>The business is E-commerce.<\/li>\n<li>The business turnover crosses 20 Lakh rupees in a financial year.<\/li>\n<li>The business is doing interstate transactions.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>LUT Registration for Exemption of GST \u2013 <\/strong>if the company is engaged in export, it then becomes necessary to furnish LUT to export without paying IGST. However, if the exporter fails to provide the LUT, then he has to pay IGST or provide an export bond.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Shops and Establishment license -<\/strong> If the company has a physical office, then a <a href=\"https:\/\/www.bbnc.in\/services\/Shops-&amp;-Establishmen-Registration.php\">shops and establishment license<\/a> is a must. It includes office work, a hotel or restaurant, boarding, caf\u00e9, etc.<\/p>\n<p><strong>P.T. Registration -<\/strong> 1. <a href=\"https:\/\/www.bbnc.in\/services\/Professional-Tax-Registration.php\">Professional Tax<\/a> Employer Registration - Certificate of Enrolment (EC). 2. Professional Tax Employee Registration - Certificate of Registration (RC)<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To start an MNC in any host country would be challenging and hence I got this blog on \u2018How to start MNC in India\u2019 to make the challenge a little simpler. If you want to set up a company in India and need help with any legal services, please feel free to contact us anytime at <a href=\"mailto:info@bbnc.in\">info@bbnc.in<\/a>. Thank you for reading, we are always happy to be able to provide useful information on topics like this!<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>MNC stands for Multinational Corporation or Companies. These companies operate in different cities across the globe. Since India has one of the fastest-growing economies, it has recently become a hub for MNCs as labour is so cheap, there are plenty of resources available and govt schemes are so supportive. MNCs have headquarters located in their [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Start an MNC in India? | BBNC<\/title>\n<meta name=\"description\" content=\"Are planning to start an MNC in India? here is everything you need to know to start an MNC from scratch in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bbnc.us\/blog\/setting-up\/how-to-start-an-mnc-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Start an MNC in India? | BBNC\" \/>\n<meta property=\"og:description\" content=\"Are planning to start an MNC in India? 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