A domestic company is a company that conducts its business in its home country. A domestic business will be taxed differently. They are required to pay duties or fees on the products that are imported. It is easy for a domestic corporation to conduct business in other states or parts of the country where it has filed its articles of incorporation.
While speaking of domestic trade, the buyer and the seller are from the same country. Their trade agreements are based on the specific laws, practices and customs that are followed by the country from which they operate.
A few advantages include:
- Transportation cost is much lower
- Encourages the establishment of small scale enterprises
- The transaction cost is lower
- The time period between the production and sale of goods is lesser
- Advantage of tax benefits
- Protection of business strategies
- Easy availability of raw materials and promotes the growth of an industry.
- Helps in the expansion of foreign trade
Documents required for setting up a domestic company
By Directors & Shareholders
- Latest passport size photo.
- Copy of Pan card of Directors
- Copy of Aadhaar Card
- Copy of Voter Identity card/ driving licence/passport of the directors
- In case of NRI or foreign national, passport copy has to be notarized at the Indian Embassy of the particular country.
- Notarized utility bill of the particular country where the NRI or foreign national resides.
- Latest bank statement of not less than two months old.
For Office Address proof
- Registered office proof of the company stating if the property is rented/ leased.
- Copy of the rental agreement or lease agreement.
- Copy of electricity/water bill (business place)
- In case of own property, copy of sale deed and electricity bill is sufficient
- Copy of no objection certificate from the owner of the property
Note: All documents submitted towards the registration of a foreign subsidiary company must be translated in English
Domestic companies are taxed differently and are required to pay duties on imported products. This type of company is one which carries out its business in the home country.
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