Full service Demat account setup
We help foreign investors set up & manage their demat account in India, effortlessly. The deadline for this compliance is Sept 30, 2024.
Schedule a FREE consultation.The Why
The Ministry of Corporate Affairs (MCA) has mandated that private companies transition to dematerialized shares. This regulatory change requires all investors (shareholders) to hold their investments in demat form. The mandate applies universally to foreign investors, including Alternative Investment Funds (AIFs), foreign funds, corporations, and individual investors.
What’s Needed
In compliance with the MCA directive, all foreign shareholders must establish a demat account in India. They are required to submit the details of their demat account to the share issuing company to ensure that their investments are properly held in demat form.
The Process
Opening a demat account involves a detailed and intricate procedure with extensive documentation and multiple-party coordination. The process initiates with the foreign entity applying for a PAN (Permanent Account Number), an essential tax identifier in India. Following this, the entity must apply for a demat account through a partner depository or bank.
The procedure includes multiple steps and process across different channels including but not limited to: submitting proof of identity and address for all authorized signatories, providing incorporation documents of the foreign entity, presenting a board resolution authorizing investment in dematerialized shares, furnishing KYC (Know Your Customer) documentation for beneficial owners, delivering Power of Attorney documents, if applicable, obtaining tax residency certificates, providing proof of funds for investments, submitting compliance certificates from relevant regulatory authorities. These may change based on entities and their setup and Accounti manages it all.
The Deadline
All compliance activities must be completed by 30th September 2024.
Accounti Full Service Demat Setup
The process of setting up a demat account is both complex and demanding, requiring a thorough understanding of the documentation and regulatory requirements. Accounti provides expert support to simplify this intricate process. We offer:
- Application for PAN: Assisting with the application and obtaining of a PAN.
- Guidance on Documentation: Offering clear and comprehensive guidance on the extensive documentation required for opening a demat account.
- Demat Account Setup: Facilitating the establishment of a demat account with a partner bank, ensuring smooth processing and compliance with all regulatory requirements.
Accounti’s service ensures that the entire process is managed efficiently, allowing for a seamless transition to compliance with the MCA mandate.
FAQs
What is a Demat account in India, and why do I need one?
A Demat account, or "Dematerialized account," is an account that holds shares and securities in electronic form. The Ministry of Corporate Affairs (MCA) in India requires all investors, including NRIs (Non-Resident Indians), to hold their investments in Demat form to comply with regulatory changes.
Why is it necessary to transition to a Demat account in India?
The MCA mandate requires all investors to hold their shares in Demat form to ensure proper regulation and compliance. This transition is mandatory for all shareholders, including foreign investors, by September 30, 2024.
Can NRIs open a Demat account in India?
Yes, NRIs (as well as OCI card holders) whether living in India or outside of India can open a Demat account in India. The process involves coordinating with an Indian bank or depository participant. Having a valid PAN (Permanent Account Number) is the first step for getting a demat account. Demat account application involves providing extensive and specific documentation, including proof of identity, address, multiple annexures and declarations, KYC (Know Your Customer) information along with specific account opening forms.
Accounti provides full support in setting up Demat accounts for all non-resident individuals, partnerships, companies and funds.
Can a foreign citizens and foreign entities open a Demat account in India?
Yes, foreign citizens and entities formed outside of India can open a Demat account in India. The process involves coordinating with an Indian bank or depository participant. Having a valid PAN (Permanent Account Number) is the first step for getting a demat account. Demat account application involves providing extensive and specific documentation, including proof of identity, address, multiple annexures and declarations, KYC (Know Your Customer) information along with specific account opening forms.
Accounti provides full support in setting up Demat accounts for all non-resident individuals, partnerships, companies and funds.
What is the best Demat account for foreign citizens/entities and NRIs?
The best Demat account for NRIs depends on factors such as the services provided, fees, and ease of access. Accounti recommends dealing with reputable banks and/or depository participants to ensure you get the best possible service for your Demat account needs.
What are the steps to open a Demat account in India?
The steps include applying for a PAN, submitting identity and address proof, providing incorporation documents for entities, providing declarations and annexures mandated by the banks, and fulfilling KYC requirements. Accounti manages all these steps, ensuring a hassle-free experience.
How does Accounti assist in opening a Demat account in India?
Accounti offers a comprehensive service that includes assisting with PAN applications, guiding you through the documentation process, and facilitating the opening of a Demat account with a partner bank. We handle the entire process, ensuring a smooth and compliant setup.
Which is the best bank for foreign citizens/entities and NRIs to open a Demat account in India?
Several banks, such as ICICI, Kotak and HDFC, offer good options for NRIs to open a Demat account. Accounti collaborates with leading banks to provide the best service for your Demat account setup.
Hear what our customers are saying
“I now spend less than a fifth of the time that I used to on my company's finances and accounts. My team works with many international clients and our numbers can be a source of major stress. Accounti took care of everything in a very systematic way. They’re also a very friendly and understanding team to work with.”
“I connected with Accounti randomly, but I’m really happy I found them. My team’s VA Nancy changed the game for us. She’s great at her job, accommodating, and easy to collaborate with. She’s given me useful advice multiple times, and I appreciate Accounti’s efforts to make the process so smooth. Big thumbs up!”
“Our Accounti package suits us to a tee. It’s exactly what we were looking for. We’re a creative unit, and not a lot of us have the time for crunching numbers, and now with Accounti, I know it’s being managed very well. It took a gnawing worry off my back.”
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