China’s Power Curtailed by Manufacturing Shift to India?
Many US based companies are manoeuvring to start manufacturing their products in India.Currently, most of them handle these processes in China. It is important to understand that such a transformation in the attitude of these corporates bodes exceptionally well for India. At the same time, many people in China will be on the verge of unemployment if these moves are materialized at any point in the times to come.
International relations are always need based
Recent reports about more than 200 companies making a move to India wills several crucial impacts on the overall scheme of things. The reality is that the ease of doing business in India has risen significantly in the past 3-4 years. As a result, setting up a business in India has become relatively easier. Arrival of modern taxation laws such as GST have eradicated multiple issues that Indian business owners faced in the past.
Trade surplus in China
The current global economic scenario has seen China making substantial inroads. You might be surprised to know that China is the only G-20 nation which does not have to deal with trade deficits. All other major economies of the world are importing more products that they are importing. The other factor that must not be ignored is that China does not allow its currency’s value to be determined by the market forces. The control of China’s Central Bank is not a good sign for the global economy. All nations of the world want an attitude and policy shift from China.
The consequence of US’ Policy
It is also important to bear in mind that shifting the manufacturing units of these companies from China to India is a prime example of power diplomacy. China will face numerous problems if these companies start their operations in India. It will lead to generation of a substantial number of jobs in India. At the same time, China will have to handle the losses.
Friendly policies in India
Flagship programs such as Make in India and the creation of special economic zones in India are clear invitations from India to the west. India wants foreign investment to enhance the rate of her growth.
Special treatment for US citizens
If you are a resident of the USA and you want to register your own company in India, then you need to follow specific steps. You are required to provide some necessary documents for this purpose. The Companies Act of 2013 (Indian Law) offers this opportunity to foreign residents if they comply with all the relevant Indian laws associated with company registration.
The process of incorporation
All companies have a separate legal identity. incorporation. Incorporation is a mandatory legal process that you need to follow when registering a company in India if you are a foreign national. By this, your organization will obtain recognition. Your company will be established when you receive documents evidencing company registration. Three significant steps follow this process-
- Preparation and filing of essential documents
- Necessary fee payments
- Obtaining the certificate
- Decide on a particular business sector
You need to decide the type of Business Corporation that you want to commence in India. There are some options available to you when it comes to an entity. You can register a partnership firm, a private limited company, a joint stock company, or a limited liability partnership (LLP).While registering an LLP or a private limited company involves fewer agreements and legal formalities, the other types of companies demand to follow a substantial number of laws.
Role of ROC
Before you register your company, you will need approval from the authority stated above regarding the proposed name of your entity. For this, you will need to make an application to them. A request for registration of the company is sent to the ROC. The application needs to be in a prescribed form and should be submitted with the necessary documents.
Documents required for company registration
When registering a company in India, a valid passport is necessary along with a driving license from the issuing country. You may also have to provide the bank account details, Voter Id card, a residence permit issued by the Indian Embassy and a social security number. Make sure that you keep all the essential documents ready to avoid any delay in the process.