NRI & setting up business in India

Hi,

1. You can register a company in India or alternatively undertake a business from Japan only if you don't need physical presence in India. In that way, you don't need to pay taxes in India. If you open a company taxes will have to be paid in India and money should also be deposited in indian bank account.

2. You will have to take gst gst registration if you are opening a company in India. if you arr doing it from japan does not have india connection, you don't need gst registration. However, it is imperative yo understand overall mechanism and your preference.

3. It will be either in Company's account or your nre account.

Dear Sir,

Hope you are doing well !!

It is advisable to take a phone consultation for detailed discussion.

We need to discuss lot of things for appropriate advise.

1. As you are NRI living in Japan, it is advisable to do business from Japan as a sole proprietor. Convert sole proprietorship into private limited company when there is increase in turnover and operations. Creation of private limited company in india will increase compliance cost. It is better to park funds in local bank account in japan.

2. Do business from Japan and obtain registrations as per local laws.

3. Yes.

Hello,

1. You can register a company in India or else in Japan itself(since you are residing there). You can also start your business as an Individual(Sole Proprietor) as well. Whether you will be providing services in India or from India?

2. Yes, if you would be providing services in India.

3. In the company's account if you are forming a company.

I hope that this answer satisfies your requirements. For further understanding, you can contact us directly at or take a phone consultation.

Regards,

CA Hunny Badlani

Are you going to provide service for online hosting of video conference with the help of a US based company?

If you are going to earn any amount from a business registered in India you need to deposit it in NRO account and not NRE account.

Its good to open a company for doing business in India but then you would require a resident member and director to handle your Indian business as a NRI cannot open a company in India. However you can do a business as your sole proprietor.

MSME registration is not required but you would need GST registration if the amount exceeds Rs. 20 lakh.

Yes you can invest in shares of above company.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

In light of the above facts, do note my advice:

There is no problem if you wish to open an NRE account.  Only thing is deposits in NRE account are only permissible by way of foreign exchange.  Also, the value of money in NRE account is fluctuating based on the currency rates prevailing.

There is no harm to open a company if it really helps you from tax perspective.  DO note that company in itself has to do a host of compliances from tax and corporate perspective.   If your nature of business is such that a sole proprietorship can do and does not require corporate presence than you can start as a proprietor and gradually as you flourish shift to a corporate structure.  Your income earned in India will be taxable in India and also liable to GST.  You need to take the registration and undertake necessary compliances.

I suppose you intend to invest in insurance policies – there seem to be no restriction on purchase of such policies by NRI.