equity, business-registration, india, germanyI am in the process of developing a new online concept, which will be launched in Denmark and Germany. However, my partner and I will split ownership 50/50.
But he is located in India, and I in Denmark (Indian and Danish citizens).
We need to make sure that A: He get the correct legal ownership of the 50% of the company. B: He needs to get paid (monthly wages) which may have to be paid from a local Indian branch (part of the mother company).
Later, the concept will also launch in India, but for now, EU will be the primary market. We plan though to establish a regular IT-development office in India.
Is it possible anyone can guide me to where I can seek more information regarding this setup?
FYI - as of now we are only 2 private persons, looking to setting up a business together. So we are not like an established company trying to target a new market in India.
You can register the business in Denmark or Germany depending on where your primary business operation would be. Most countries allow foreign shareholders and that should not be a problem. You can create a partnership agreement with the help of a good business lawyer, get it notarized for good measure and send your Indian partner a copy. Then you can you create the company, include the Indian partner as a shareholder and allocate him shares. Send him the formal paper work for the share allocation and copies of articles of incorporation to keep trust and good will.
There maybe some regulations in your country about having a foreign share holder that you may want to look at and there maybe taxation rules that your Indian partner may want to be familiar with. The lawyer would be able to help with both.
Before you launch in India, you can register a company and create with the same share and corporate structure. The Indian counter part to a German Gmbh or a Danish Anpartsselskab would be a Private Limited company. There are companies based in India that provide this service online or it can be done through a chartered accountant by your friend. Many countries in that part of the world have incentives for direct foreign investments and you should inquire about this when you are ready.
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