Register a company in India

- India has world’s 3 rd largest Startup Ecosystem.

- According to IMF, India has overtaken the U.K. to become the world's fifth-largest economy and is now behind only the US, China, Japan and Germany.

- India has a huge domestic market as more people are entering the workforce and private consumption is believed to reach its peak by the year 2025.

- Foreign Direct Investment (FDI), in addition to being a key driver of economic growth, has been a significant non-debt financial resource for India's economic development Foreign corporations invest in India to benefit from the country's particular investment privileges such as tax breaks and comparatively lower salaries.

- India has recently become a major global hub for FDIs. According to a survey, India was among the top three global FDI destinations; about 80% of the global respondents had plans to invest in India. Furthermore, in recent years, India has provided huge corporate tax cuts and simplified labour laws.

- The total FDI inflow into India from January to March 2022 stood at US$ 22.03 billion, while the FDI equity inflow for the same period was US$ 15.59 billion. From April 2021- March 2022, India's computer software and hardware industry attracted the highest FDI equity inflow amounting to US$ 14.46 billion, followed by the automobile industry at US$ 6.99 billion, trading at US$ 4.53 billion and construction activities at US$ 3.37 billion.

India’s enormous population is no secret. The country is expected to have the world’s largest youth population by 2022. India is home to the third largest group of scientists and technicians in the world. With a large young population, high levels of education, skilled workforce and a strong work ethic, India is set to become a global player.

Taking a step towards progress, more than $1.5 trillion investments have been planned for infrastructure in the next two decades. The next three decades will witness more than 350 million Indians moving into cities. The Government of India has mapped infrastructure initiatives across different sectors, from railways to highways and industrial corridors to smart cities.

FDI in India has been permitted through two routes:

India’s enormous population is no secret. The country is expected to have the world’s largest youth population by 2022. India is home to the third largest group of scientists and technicians in the world. With a large young population, high levels of education, skilled workforce and a strong work ethic, India is set to become a global player.

Taking a step towards progress, more than $1.5 trillion investments have been planned for infrastructure in the next two decades. The next three decades will witness more than 350 million Indians moving into cities. The Government of India has mapped infrastructure initiatives across different sectors, from railways to highways and industrial corridors to smart cities.

FDI in India has been permitted through two routes:

Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Foreign investment in major sectors have been placed under this and includes 100% automatic approval in Biotechnology, Construction/ Development, E-Commerce activities, IT & BPM, etc.

Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministry/ Department. Some of the sectors falling under this category are Food Products Retail Trading, Multi Brand Retail Trading, Print Media, etc.

Foreign investors can commence business in India as:

a. Liaison office – To represent parent company in India
b. Branch office – To undertake activities such as export, import of goods, research, consultancy etc.
c. Project office – Activities as per contract to execute project (for carrying out export import, research and project execution operations)

Joint Venture or Wholly owned subsidiary – Any investor can enter into a JV or Wholly owned subsidiary as either Private Ltd. or Public Ltd company subject to Companies Act 2013

LLP (Subject to provisions of LLP Act, 2008). FDI permitted under automatic route in LLPs operating in sectors/ activities where 100% FDI is allowed via automatic route and there no FDI linked performance conditions.

Sole Proprietorship is a single person establishment where the individual manages and controls their business on their own. Accordingly, it is cost-effective as there no fees to pay during the initiation of the process. Further, the primary establishment is easy as there is no need for registration.

A Partnership is a relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all. Partnerships are a very good form of business entity for small enterprises wherein more than one person decides to contribute to a partnership and share the profits. In India, Partnerships are widely prevalent because of their ease of formation and minimal regulatory compliance.

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners.

It is the most common form of business establishment in India. These are limited liability business forms that enjoy separate legal entity but have limitations regarding maximum number of members which is restricted to 200. These entities have restriction regarding free transferability of shares and public subscription to its shares.

One Person company means a private limited company which has only one person as a member. In an OPC, a single promoter gains full authority over the company thereby, restricting his/her liability towards their contributions to the enterprise. It is a single person entity which enjoys perpetuity, separate legal stature and limited liability.

These are limited liability business forms that enjoy separate legal entity but have no restrictions as imposed onto Private Limited companies. These companies can invite public for subscribing their securities.

It is an office that facilitates close working relationships between the parent company situated abroad and the business parties in India. The other term for Liaison offices is Representative Office. Liaison offices have restrictions and cannot undertake any business activities in India and also cannot earn any income in India.

A branch office mirrors the function of a parent company. The offices are established to perform similar business operations as the foreign parent company at different locations in India. Branch offices can carry on substantially the same business as the parent company. They can carry out all the trading activities that a parent company does. The major restriction being carrying out manufacturing activities although the same can be subcontracted to Indian Manufacturers.

The RBI grants the parent company situated abroad to have project offices in India for representing the interests of the parent company executing projects in India but excludes Liaison Office. The project office can only undertake the activity relating and incidental to the project. The primary condition for opening a project office India is that the parent company must have secured a contract from an Indian company.