Updated : October 23, 2024Document Legalization in the Commonwealth: A Key Advantage for Setting Up a Subsidiary in India
Overview :The guide describes the concept of document legalisation within the Commonwealth and discusses its advantages, particularly in establishing a Wholly Owned Subsidiary Company (WOS) under the Companies Act 2023 in India. It sheds light on Companies Incorporation Rules including legalization and translation of documents. Gain in-depth knowledge on Document Legalisation in the Commonwealth Member Countries.
The Commonwealth of Nations is a unique association consisting of 54 independent countries. These countries share a common history, values, and a commitment to global cooperation. One of the benefits that member countries enjoy is the simplification of document legalisation processes.
In this blog post, we will explore the concept of document legalisation within the Commonwealth and discuss its advantages, particularly in establishing a Wholly Owned Subsidiary Company (WOS) under the Companies Act 2023 in India. We will also discuss how document legalisation enhances business relations among member countries and makes it easier to conduct business in India.
Understanding Document Legalization
Legalisation of documents is a process that verifies the authenticity and origin of a public document such as Identity Proof, Address Proof, National Identity Cards, Certificate of Incorporation of a foreign corporation, Articles of Association, or Utility Bills (e.g., Telephone Bill, Electricity Bill) for their usage as address proof in India during the Company Incorporation Process.
The process of legalisation typically involves obtaining an apostille, which is an official certificate that confirms the document’s authenticity according to the Apostille Convention (Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents). Participating countries agreed to the Apostille Convention to simplify the process of document authentication.
Member Countries of the Commonwealth
The 54 Commonwealth member countries represent diverse cultures, languages, and religions. They are spread across all continents and include some of the world’s largest, smallest, wealthiest, and most impoverished nations. Here are the member countries grouped by region:
| Africa (19 countries) | Asia (8 countries) | Caribbean & Americas (13 Countries) | Europe (3 countries) | Pacific (11 countries) |
|---|---|---|---|---|
| Botswana Cameroon Eswatini Gambia Ghana Kenya Lesotho Malawi Mauritius Mozambique Namibia Nigeria Rwanda Seychelles Sierra Leone South Africa Tanzania Uganda Zambia | Bangladesh Brunei India Malaysia Maldives Pakistan Singapore Sri Lanka | Antigua & Barbuda The Bahamas Barbados Belize Canada Dominica Grenada Guyana Jamaica Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad Tobago | Cyprus Malta United Kingdom | Australia Fiji Kiribati Nauru New Zealand Papua New Guinea Samoa Solomon Islands Tonga Tuvalu Vanuatu |
Companies Incorporation Rules: Legalization and Translation of Documents
It is worth noting that although the process of legalising documents within the Commonwealth has been simplified, one should also be aware of the specific provisions of the Indian Companies Incorporation Rules with regard to the legalisation of foreign documents and the verification of translations for documents that are not in English.
- Legalisation of Overseas Documents : When establishing a subsidiary in India, it is important to ensure that all foreign documents, including incorporation certificates, board resolutions, or power of attorney, are legally recognized in India. This can be achieved by obtaining consularization or attestation from the Indian Embassy or Consulate in the country where the document was issued. For Commonwealth countries, this process is often simplified through bilateral or multilateral agreements.
- Translation of Non-English Documents : If the documents required for incorporation are not in English, it’s necessary to get them translated into English. This translation should be done by an official translator or an authorised person. After the translation is complete, the translated documents must be certified as a true and accurate translation by the translator, a notary public, or another authorised person in the country where the document originates. It’s important to note that the translated documents may also need to be legalised as per the Companies Incorporation Rules or the simplified process within the Commonwealth, as applicable.
Conclusion
The Commonwealth Nations’ Members can provide countries with simplified document legalisation processes. This benefit promotes economic growth and educational opportunities, strengthens diplomatic ties, and promotes unity among the diverse nations. Businesses can avail it by setting up a subsidiary in India under the provisions of the Indian Companies Act. It helps navigate the complexities of cross-border transactions and capitalise on the opportunities available in the Indian market.
