How to register a company in India

 Indian Company Registration

Most Attractive FDI Destination in the World – OECD

Establishing a presence in India is key to overcoming cultural alienation, targeting specific emerging markets with huge potential within India, and leaping over bureaucratic hurdles. India still carries plenty of promise as one of the world’s largest economies and consumer markets. It is one of the rare countries that has continued to attract FDI investment even during the pandemic.

you can read more about “
How to register a company in India” here

What Makes India the Destination of Choice for Your Business?

Non-resident businesses can benefit from setting up shop in India owing to its abundance of resources, skilled labor at low wages, and tax exemptions for certain categories of businesses. The government has made notable strides in liberalizing industries, easing bureaucratic red tape, and establishing arbitration fora to settle disputes amicably.

3rd Most Attractive FDI Destination in the World

India has continued to receive FDI inflows in record numbers during the pandemic, showing strong and continued investor sentiment (Deloitte).

1.4 million Companies in Active Operation & Rising

One of the largest number of businesses being registered every year signifying new opportunities in hitherto untapped markets (Ministry of Corporate Affairs statistics).

32 Global Unicorn Companies Registered so far, each valued at over USD 1 billion

New startups in the IT and bleeding-edge technology space continue to appear and find success (Statista).

419.5 Million Consumers by 2030

MarketPro predicts that India will provide the largest consumer class change in the coming decade.

High Digital Competitiveness

India is widely recognized as a force to reckon with in Information Technology, Telecommunications, Engineering, Pharmaceuticals, & Textiles at par with any advanced economy.

Continuous Business Reforms

Sustained business reforms have helped the country jump 14 places over their previous ‘Ease of Doing Business’ rankings according to the World Bank.

Stable Political Environment

India scored 90 out of 100 under the head, ‘macroeconomic stability’ in the Global Competitive Index prepared by the World Economic Forum (WEF).

World’s 3rd Largest Economy by PPP

India remains one of the world’s top 6 economies by nominal GDP and 3rd by Purchasing Power Parity (Knoema).

India Can be a Tough Market to Break Into

Persistent red tape, long winding judicial processes, fragmented markets and distribution networks, and a lengthy list of compliances could pose significant hurdles against tapping an undeniably lucrative market.

In order to successfully navigate these challenges, you will need a helping hand. We can help you right from

the stage of pre-company formation (market exploration, cost assessment, procedural requirements by law),

to company incorporation,

through to staffing,

finding your office space,

determining taxes,

and managing accounts and audits.

We can also help you understand how businesses operate in India,

its unique work culture,

and establish a completely local presence.

To begin with, you may want to learn how you can set up a business in India. We recommend setting goals and expectations for your India business. Once that is done, you can move on to finding the right kind of organizational structure that can help you meet those goals and expectations.

Types of Business Structures Available in India

In general, a foreign business can begin operations in India with the following types of organizational structure: Form an Indian Company:

Through a Joint Venture

Through a wholly-owned Indian subsidiary

You can do either of these through private or public limited companies. The following types of companies can be incorporated in India:

One Person Company (OPC, for Indian Residents only)

This option lets you limit your liability, in case the business winds up, to business assets only. A single person can start an OPC with minimum documentation requirements. There is also no need to conduct annual general meetings or file returns with the Registrar of Companies.

Private Limited Company

This may be a company limited by shares in capital or by an amount that each company member promises to contribute to the assets of the company. Shares or contributions need to be mentioned in the Memorandum of Association of the company. You also need to have a minimum of 2 members and 2 directors, one of whom (directors) must be an Indian resident.

Public Limited Company

A Public Limited Company allows you to obtain funding via shares from the public. You need to have a minimum of 7 members and 3 directors, one of whom must be a resident Indian.

You can choose the type of company that best suits your needs and register the organization under the Indian Companies Act 2013. Other than the types of companies mentioned above, Indians can also apply to set up a Hindu Undivided Family, Sole Proprietorship, or Partnership firm structures. However, not all of these fall under the Companies Act for registration. All these latter three types have different registration structures.

Who Regulates Company Registration in India?

The Ministry of Corporate Affairs offers a wholly online process to help you register the type of companies mentioned above. However, documentation requirements can be complex. Your decision at this stage will also affect how much tax and what kinds of filings and audits you will need to legally perform each year.

Apart from registering your company in India, you also have the option of setting up:

A Liaison Office

To collect information, promote imports and exports, or facilitate technical or financial collaboration.

A Branch Office

To provide professional or consultancy services, perform research, develop IT products and services for the parent company, act as buying/selling agent, etc.

A Project Office

To execute specific projects in India. A PO cannot undertake any other activity apart from activities that are related and incidental to the specific project.

A Limited Liability Partnership (LLP)

his company form is relatively simpler to set up than a full-fledged company, requiring at least 2 partners and 2 designated partners, one of whom must be a resident Indian. However, your liability is limited by the number of shares in the LLP you own.