What is Private Limited company

A private limited company is also known as a Pvt Ltd company. A private limited company is an organisation that provides limited liability to its shareholders. There is a restriction on the transfer of shares of a private limited company. The maximum number of shareholders in a private limited company is 50. Private limited companies are registered under the Companies Act of 2013.

Private limited companies are more suitable for small and medium-sized businesses (SMEs) because of their flexibility. Private limited companies provide more advantages to small businesses compared to public limited companies. Private limited companies provide an advantage in terms of long-term investment, keeping data confidential, independence of operation, etc. 

What is NRI  

A person who is a citizen of India and lives outside India for a job, business, or any other purpose is referred to as an NRI. The status of an NRI is decided based on the number of days he/she stays in India for a particular financial year. It is assumed that if he/she stays in India for fewer than 182 days in a year, then he/she would be considered an NRI according to the tax laws in India.

Advantages of NRI Private Limited Company

There are some following advantages of private limited company NRI

1. Limited Liability

The assets of the shareholders are secure and the liability is only for the investment in the company.

2. Separate Entity

The company is a separate entity from the shareholders and is a legal entity that can enter into a contract and own assets.

3. 100% FDI (Foreign Direct Investment) Permitted (Most Industries)

NRIs can invest freely in companies in India with the approval of the Reserve Bank of India.

4. Easy Fund Raising

It is easy to raise funds for a private limited company compared to other forms of companies like partnership and proprietorship.

5. High Business Credibility

NRIs enjoy high credibility in the market compared to proprietorship and partnership forms of business.

6. Perpetual Succession

The company is a legal entity and continues to exist even if there is a change in the directors and the shareholders.

7. Repatriation of Profits

NRIs can repatriate their profits, dividends, and earnings to their respective countries by following tax regulations.

What is Private Limited company

A private limited company is also known as a Pvt Ltd company. A private limited company is an organisation that provides limited liability to its shareholders. There is a restriction on the transfer of shares of a private limited company. The maximum number of shareholders in a private limited company is 50. Private limited companies are registered under the Companies Act of 2013. 

Private limited companies are more suitable for small and medium-sized businesses (SMEs) because of their flexibility. Private limited companies provide more advantages to small businesses compared to public limited companies. Private limited companies provide an advantage in terms of long-term investment, keeping data confidential, independence of operation, etc.

What is NRI

A person who is a citizen of India and lives outside India for a job, business, or any other purpose is referred to as an NRI. The status of an NRI is decided based on the number of days he/she stays in India for a particular financial year. It is assumed that if he/she stays in India for fewer than 182 days in a year, then he/she would be considered an NRI according to the tax laws in India.

Step by Step Process for Private Limited Company for NRI 

Step 1: Obtain Digital Signature Certificate (DSC)

The first step is to obtain a Digital Signature Certificate (DSC) for all proposed directors, including NRIs.

●      DSC is required to sign electronic documents online

●      DSC is issued by government-authorized agencies

●      NRI documents must be notarized or apostilled before applying for a Digital Signature Certificate

Step 2: Apply for Director Identification Number (DIN)

●      DIN is a unique identification number for directors

●      DIN is applied during company incorporation using the SPICe+ form

●      DIN is mandatory for all directors, including NRIs

Step 3: Name Reservation (RUN/SPICe+ Part A)

●      Select 2-3 unique company names

●      Apply for name approval on the MCA portal

●      The name must comply with name guidelines

●      Once approved, it is reserved for a limited time

Step 4: Drafting of MOA & AOA

●      MOA (Memorandum of Association) defines business objectives

●      AOA (Articles of Association) defines company rules and regulations

●      Both MOA and AOA are filed digitally during incorporation

Step 5: Filing SPICe+ Form (Company Incorporation)

This is the main step in which the company gets registered.

Submit SPICe+ (Simplified Proforma for Incorporating Company Electronically)

Documents to be attached:

●      NRI Passport & Address Proof

●      Documents of Indian Director

●      Documents of Registered Office

Apply for:

●      PAN & TAN

●      GST (optional)

●      EPFO & ESIC (optional)

Step 6: Payment of Government Fees & Stamp Duty

●      Payment of Registration Fees based on:

●      Authorized Capital

●      State of Registration

●      Stamp Duty varies from State to State

Step 7: Verification by ROC (Registrar of Companies)

●      The application will be verified by the ROC (Registrar of Companies)

●      May require clarifications or additional documents

●      After verification, approval will be granted

 Step 8: Certificate of Incorporation (COI)

●      On approval, you will receive:

●      Certificate of Incorporation (COI)

●      Company CIN (Corporate Identity Number)

●      PAN & TAN of the company

Documents Required for NRI

For Directors and Shareholders

1. Passport (mandatory)
2. Overseas Address Proof (Bank Statement/Utility Bill)
3. Indian Address Proof (optional, if available)
4. Passport-size photo
5. Email ID and Mobile Number

Additional Requirements

1. Notarized and Apostilled documents from the foreign country
2. Director Identification Number
3. Digital Signature Certificate

For Registered Office

1. Rent Agreement/Property Ownership Document
2. NOC from the property owner
3. Utility Bill (Electricity/Water/Gas)

Establishing a Private Limited Company in India as an NRI is a shrewd business strategy that provides an opportunity to tap into a plethora of business opportunities in one of the most booming economies of the world. With proper guidance from Tax Squire CAs, NRIs can assure a smooth company incorporation and compliance, leading to a successful business venture in India.