• Trading in India within the health sector as an NRI living in the UK

I want to start a business in India but i am not a resident in India and have UK citizenship. The start up is in the health and wellness sector and involves an online platform to provide services. Is it better to register a company in India or UK? What are the things I need to be aware of in relation to tax? 
In relation to intellectual property, can i register it without having a company?
Asked 1 day ago in Business Law

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12 Answers

Yes, You can register company or LLP in India, with proper Indian Register Address, one Indian Director and specific numbers of share holders. As per the laws and rules provided by FEMA, FDI and RBI policies. 

 

Better register company or LLP in India as you will be paying less taxes as compared to UK.

Ganesh Kadam
Advocate, Pune
12979 Answers
261 Consultations

Register it in UK 

 

2) 

 

The Reserve Bank has granted general permission to NRIs/PIOs for undertaking direct investment in Indian companies under the automatic route, purchase of shares under Portfolio Investment Schemes, investment in companies and proprietorship/ partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes.

 

 

3) NRIs can register trademarks in India through the IP Office. Trademarks must be unique and distinguishable to be registered, and they are subject to examination and opposition proceedings

Ajay Sethi
Advocate, Mumbai
96599 Answers
7784 Consultations

1) When you mean register address, is that a physical office location? What if the business is conducted online, i.e. consultations are done online? 

Yes, Its compulsory to register company like offline services.

2) How many share holders are needed? Are there any specific laws to be aware of when it is in healthcare and wellness?

Two share holders are required minimum. you may follow IMA rules. (however, all the points will get coverd in FDI, FEMA and RBI rules

3) To register a trademark, do i need a registered company?
No, its not compulsory to registered a company for trademark registration.

Ganesh Kadam
Advocate, Pune
12979 Answers
261 Consultations

A a foreign citizen can start a business in India.

India is considered a preferred destination for foreign nationals and NRIs to start a business due to its liberal FDI policy.

NRIs or foreign nationals can register a company and make investments in India subject to the Foreign Direct Investment Policy and Guidelines issued by the RBI. The only condition as per Incorporation rules is that a person of Indian Nationality should be appointed on Board of Director of the company.

Any individual can register a trademark in India, including foreign citizens. Foreign trademark owners can use the Madrid Protocol to register their trademarks in India and other member countries with a single application. However, they must first register their trademark in their home country

The application must include the required documents and fees.

It is not necessary to have a legal entity in India in order to register a trademark.

 

T Kalaiselvan
Advocate, Vellore
86800 Answers
2322 Consultations

Foreign citizens cannot conduct online business in India without setting up an office or registering a company with the Registrar of Companies (RoC) under the Ministry of Corporate Affairs (MCA): 

a few options for setting up a business in India:

A company incorporated under the Companies Act, 2013 is the most preferred route for doing business in India. The other option available is a Limited Liability Partnership (LLP) firm. 

The fastest way to set up a business in India is through registering as a Private Limited Company (PLC). Almost all sectors (except for few prohibited sectors) can welcome Foreign companies to set up business in India via FDI (either through the Automatic Route or through the Government Route) 

A Public Limited Company must have at least 7 (seven) shareholders. There is no upper limit on the number of shareholders of a public company. A public company must have a minimum paid-up capital of Rs. 500,000.

A foreign company has the option to set up a liaison office (also known as Representative Office) for all liaison activities in India. A foreign company will bear all the expenses of a liaison office. A Liaison Office can undertake only liaison activities in India i.e. it can act as a channel of communication between the Head Office (established abroad) and parties in India. The Liason Office is not allowed to undertake any business activities in India and cannot earn any income/profits in India.

T Kalaiselvan
Advocate, Vellore
86800 Answers
2322 Consultations

Registered address would need  physical address location 

 

for private limited company you need at least 2 share holders 

 

you don’t need a registered company to register trademark 

Ajay Sethi
Advocate, Mumbai
96599 Answers
7784 Consultations

Dear Client,

In the Present Scenario, you want to start a business in India, but you have a UK Citizenship. The start-up you would want to make is in the health and wellness sector, that involves an online platform to provide services. Hence you wish to enquire on what are the consideration to be made in relation to tax, and whether you can register without actually having a company. Herein, it can be noted that, you can register as a private limited company, or a limited liability partnership, which is often preferred for a start-up. For the same, you would require a minimum of two directors, out of whom one must be a resident in India, and a registered office in India, as per the Companies Act, 2013. With respect to tax, if you register the company in India, tax would be charged for a domestic company. Furthermore, the presence of Double Taxation Avoidance Agreement (DTAA) between UK and India, helps avoid tax liabilities for income earned in both countries together. For registering IPR in India, it is necessary that you provide the required details on the goods or services provided, and the trademark under which the company would function. This must be in accordance to Trademarks Act, 1999.

Hope you find this answer beneficial for resolving the dispute.

Anik Miu
Advocate, Bangalore
10045 Answers
119 Consultations

 

- As a non-resident, you can invest in India under the FDI policy. Health and wellness services.

- Further, you can register as a Private Limited Company or a Limited Liability Partnership (LLP).

-  Further, if you register your startup in the UK,, the you can leverage the benefits of a stable legal environment and potentially easier access to funding, and you may serve Indian clients after comply with Indian regulations for operating online.

- Further, if you register a company in India, then it require Goods and Services Tax (GST) for services, and you will be liable for tax on income generated in India.

- Further, for a Private Limited Company, a minimum of two directors and two shareholders are required , and for a One Person Company (OPC), only one director and one shareholder are required.

- A registered company is not required for the registration of trademark. 

 

 

 

Mohammed Shahzad
Advocate, Delhi
14335 Answers
219 Consultations

You have to follow the RBI, FEMA, FDI and GST regulations.

Ganesh Kadam
Advocate, Pune
12979 Answers
261 Consultations

You must be aware of provisions of FEMA 

 

FEMA rules for NRIs do not allow holding a savings bank account. NRIs need to set up an NRO or NRE Account as stipulated by the Reserve Bank of India (RBI). -

 

 

2) NRIs are permitted an unlimited amount of investment options through repatriable and non- repatriable transactions.

 

3) you must be aware of provisions of companies act , income tax act if you are offering  online services in India 

Ajay Sethi
Advocate, Mumbai
96599 Answers
7784 Consultations

This will include the prevalent registration and business structure mandates, Goods and Service Tax (GST) compliance, applicable Foreign Direct Investment (FDI) compliances, consumer protection and competition laws, data protection and security compliances, payment gateways, and Intellectual Property Rights (IPR(s)) and marketing legal compliances.
For e-commerce entities in India, legal compliance is of utmost importance. From registration and business structure to intellectual property rights, consumer protection, data privacy, payment gateway regulations, advertising and marketing, taxation, and international trade, there are various legal aspects that e-commerce businesses need to navigate. Adhering to these legal requirements not only ensures smooth operations but also builds trust among consumers and protects the interests of all stakeholders involved. E-commerce businesses must stay updated with the evolving legal landscape, seek professional advice when needed, and proactively address compliance obligations.

T Kalaiselvan
Advocate, Vellore
86800 Answers
2322 Consultations

There is no legal bar for you to start a business by forming a company. However for this few formalities/complainces are to be done. your query lacks details or necessary information.  if details are proved then further advice can surely be given. 

Devajyoti Barman
Advocate, Kolkata
23154 Answers
509 Consultations

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