One partner is foreigner what legality for incorporating startup

769 votes

There does not appear to be much of a problem in incorporating a partnership as you want. Capital in a partnership is absolutely upto you. More details pertinent to the venture need to be shared so that advice can be given.

Advocate Kawaljit Singh Bhatia LawRato

854 votes

Pleae take note of following -
1. You need to identify both the directors of the company to the government and in case where one person is a foreign national then he has to furnish his details as well.
2. In the process of registration you will be required to have DSC, DIN, CIN and PAN and TAN.
3. All filings will be done before MCA by way of its website under the signature of a CA.
4. The requisite government fee will depend upon the authorized capital company intended to have, company's type (small or normal) and its intention (non profit or for profit)

Advocate Pulkit Prakash LawRato

588 votes

Hi..

There are multiple aspects involved in this scenario. For initial purposes, It needs to ascertained depending on your business sector, the FDI investment being brought in by your foreign partner, the relevant FDI policy etc. As to which vehicle should be used to run your start up I.e. company or LLP etc.

Once the vehicle is decided, the requirements under law with respect to that vehicle vis -a-vis the foreign investor will have to be ensured. For example, if the choice of vehicle is a company, then.it would have to be ensured that atleast one director is an Indian etc.

So your question requires a thorough review of your business, your vision for it, the sector it is based in, the kind of investment being brought in by the foreign investor etc. for anyone to give you an appropriate advise.

In the interim, I hope the above general information gives you an insight into the question of a foreign investor and things in general regarding startup vehicle..

Advocate Tushar A John LawRato

933 votes

Well, your question is not complete before answering your question when need to know the area of your operations/Industry you are going to work, investment details with your proposed director and future legal corporation of your startup. In fact, legal status plays very important role and your business area/industry - for your general information there are two routes of investment by NRI/foreign companies or individual. These two routes by which India gets FDI.

Automatic route: By this route, FDI is allowed without prior approval by Government or Reserve Bank of India.
Government route: Prior approval by the government is needed via this route. Foreign Investment Promotion Board is the responsible agency to oversee this route.

My suggestion either sees startup lawyer with complete details or consult a CA or you can check more details on RBI website

Advocate Nischal Arvind Singh LawRato

705 votes

Hello! Thank you for the question. The Registrar of Companies requires some additional documents to be produced in case a non-citizen is involved in incorporation. But it's completely manageable. Also it will be relevant to understand if the person is present in India at the time of incorporation or not. We will need additional details from you to answer. We can discuss this in detail over a call or meeting. For further queries please get in touch with us.

Advocate Bhoomika Choudhury LawRato