India is one of the largest democracies and one of the most potential growing economies in the worldwith more than 1.3 billion inhabitants. International companies therefore have a huge interest inexploiting the emerging opportunities in India and in entering the rapidly growing market. In thispaper, we examine how a foreign firm / foreign national can launch an operation in India and/or investinto companies in India and the regulatory framework associated with this. Under Section 2(42) of theCorporate Act, 2013, a foreign company is defined as an entity that is formed, either by itself or via anagent physically or electronically outside a business office in India, and that is engaged in a businessin any other way. A foreign corporation in which a company that is formed in Indian is a subsidiary ofthe Indian business, whether equity or preferences, not less than 51 percent of the paid-up sharecapital. The method for incorporating a foreign subsidiary is explained in this blog.In Section 2(87) of the Companies Act 2013, the subsidiaries are defined as a business in which theholding undertaking controls or controls over half of the share capital by itself or in conjunction withone or more subsidiaries of the board of directors. A wholly-owned subsidiary refers essentially to afirm in which the parent company holds 100% of its shares.In order to facilitate the creation of firms SPICe+ FORM (Simplified Proforma electronically plus)has been introduced and notified by the Ministry of Corporate Affairs (MCA) on 18 February 2020.Three federal government departments and one state government provide over 10 services(Maharashtra). The previous SPICe form has been replaced with the SPICE+ form, whichsubstantially simplifies the registration of corporations.The SPICe+ form consists of two parts: The following Part A – Name for new enterprises reservation. Part B- All additional services necessary for the company's formation.o Company Registration.o Allotment of Director Identification Number (DIN).o Issuing of PAN Card.o Issuance of TAN.o Issuance of EPFO registration.o Issuance of ESIC registration.o Opening of Bank account for the Company; and.o Profession Tax registration (only for Maharashtra).

INCORPORATION PROCESSThe rules which should be followed for the establishment of an enterprise are laid forth in section 7 ofthe Companies Law, 2013 and the Companies Rules (Incorporation) 2014. Rule 38 of the Rules ofProcedure, 2014 discusses the SPICe+ form and the procedure for incorporating a firm.OBTAINING DIGITAL SIGNATURE CERTIFICATE (DSC)For a person who desires to be director of a firm, a digital signature certificate is essential. DSC is adigital key that the certification authority issues. For reports, applications utilising DSC alone, theMinistry of Corporate Affairs has made them mandatory. DSC can be acquired by the conventionaltechnique or by the biometric method i.e., in two different methods. In the conventional way, theapplicant must mail to the certifying authority all papers suitably notarized together with thenecessary fee. DSC will be issued by the certifying authority to the requester when the paperssupplied are satisfied.Documents required for DSC is as follows: Identity proof– PAN card / passport / driving license or any other signature Government ID ifthe applicant is an indigenous native. Certified copy of a Foreign NationalsPassport/VISA/Resident Permit. Address Proof– Copy, or other utility bill not older than 3 months if the applicant is an Indiannational of the Aadhar Card/Voter ID Card/Driving license Certified copy of a ForeignNationals Passport/VISA/Resident Permit. Fully attested Copy– Applicants are certified to be an Indian national. Copy of the ID Card isacceptable. If it is a foreign national, the embassy of the foreign national should confirm it orthe Native country should apostatize it. A passport size photo is also required for the same.APPROVAL OF THE NAME OF THE COMPANYApproval of the name by the Minister of Corporate Affairs is the next step towards the formation ofthe firm. Previous name consent has been submitted to MCA website on the R.U.N form (ReserveUnique Name). Now only the name of an existing business is changed by using the RUN form. TheSPICe+ Form Part A may be requested separately to book a name for a new business and may berequested at the same time.The candidate who would want to join a foreign company must mention in the SPICe+ Form thefollowing details: Type of company

 Class of company Category of company Industrial activity of the Company Description of Industrial activity Proposed name Choose fileAccordingly, the name of the holding company may be used, with addition of the term India or thename of any Indian state or town, pursuant to Article4(2) and (3) of the Companies Act 2015 and readunder rule 8 of the Companies Incorporation Rules. If the name of a foreign country is the same,following confirmation of commercial links such as a Memorandum of Understanding, the same shallbe permitted. The trademark may be used for the same if the foreign firm holds a trademark for thesame. The candidate must ensure that no trademark infringement has occurred.INCORPORATION OF FOREIGN SUBSIDIARYThe incorporated firm is included in Part B of the SPICe+ form. Only the incorporation procedure willbegin once Part A has been concluded. The form for SPICe+ comprises different columns necessaryfor the incorporation of the firm to be filled correctly.COMPANY REGISTRATIONThe applicant must fill up the data in an electronic form and submit necessary corporate papersexclusively using SPICE+ form. It contains different data such as the registered office address and thecompany's financial structure.ALLOTMENT OF A (IDENTIFICATION NUMBER OF DIRECTOR DIN)DIN is a unique 8 digit identifier number for a person who wishes to become a business director.Anyone wishing to become the Director of a new firm should apply for a SPICe+ application formand fill it out. Only the DIN individual can serve as the company's director.ISSUANCE IF PANPAN Card Permanent Account Number (PAN) is a unique ten-digit number issued by the income taxdepartment. At the moment the company is incorporated, it is obligatory to apply for a PAN Card.ISSUANCE OF TANThe unique ten-digit number provided by the income department tax is tax withdrawal and collectionaccounts (TAN). Tax number.Documents required for SPICe+

 Memorandum of Association which is duly apostilled or notarized in a foreign nation; Articles of Association  which is duly apostilled or notarized in a foreign nation; Declaration by the first Director(s) and Subscriber(s) which duly apostilled or notarized in aforeign nation; Digital Signature with only one subscriber; NOC from the owner of the company; DIR-2 declaration from directors along with proof of Identity; Proof of office address; Copy of utility bills which should not be older than two months; A resolution passed by the promoter company; Copy of body resolution of incorporation of foreign body and resolution of passed by theforeign company; Proof of identity and residential address of subscribers; Proof of identity and residential address of nominees.AGILE-PROPursuant to the Rules on the Registration of Goods and Services (GSTIN), Employee State InsuranceCorporation (ESIC), Employees Provident Fund Organisation (EPFO) and Professional Tax Registryand Opening Bank Accounts (ASTIN) registration, AGILE-PRO is needed under the Rules of theCorporation. For the creation of a new business, it is required to complete the Form for AGILE-Proand SPICe+.Documents required for Agile-Pro Proof of Principal place of business. Proof of appointment of authorized signatory for GSTIN. Proof of identity of authorized signatory for opening a bank account. Proof of address of authorized signatory for opening a bank account. Specimen signature of authorized signatory of EPFO.

REGISTRATION OF THE EPFORegistration of EPFO workers is mandatory for all organizations with over 20 employees. At the timeof pension, EPF is an advantage that the company provides the employee. The Employee Funds andMiscellaneous Provisions Act (1952) shall apply to EPF. For registration of the EPFO together withthe company's establishment, the SPICe+ form became obligatory.REGISTRATION OF THE ESICThe ESIC is an autonomous institution within the Ministry of Employment and Labor. Thisprogramme offers the employer with medical and financial advantages. The State Insurance Act of theemployees of 1948 governs the ESI. With the moment of incorporation itself, the form SPICe+ madeit obligatory for applicants to register at ESIC.OPENING THE COMPANY'S BANK ACCOUNTAt the moment of establishment, companies must create a bank account. The AGILE-Pro wasintegrated with just ICICI and Punjab National Bank.FILL IN INC-9 DETAILSINC-9 is a statement made by the Director at the time of incorporation, and it is filed in conjunctionwith the SPICe+ Form. The director's affidavit with INC-9 is also submitted.FORMS AND CORPORATION CERTIFICATE UPLOADYou must download all forms in PDF format and attach DSC. If DSC is attached, all forms on theMCA website should be uploaded. The forms are checked by MCA after they are posted. Thecertificate of incorporation should be issued after inspection. The registrar shall issue a certificate inForm INC 11 of the Incorporation.CONCLUSIONIndia is regarded a profitable commercial market, and many international firms seek a promisingfuture in India. India also offers a favorable business climate and, before incorporating a foreignsubsidiary in India, it is equally necessary to grasp the regulatory and procedural framework. Theprocedure of incorporating a foreign firm has been greatly facilitated by easy business initiative. If anexternal firm follows the steps referred to in the blog, it can establish a completely owned subsidiaryin India. The pre and post registration of the foreign subsidiary involves a lot of legal compliances forwhich you can approach MYADVO. MYADVO has 10000 plus legal advisers across India havingexpertise in the same.