Company formation in India

Setting up a company in India brings with it challenges for foreign companies that need to be considered right from the start. These include, for example:

1. Bureaucracy: India has a complex and bureaucratic regulatory framework that can often make it difficult to do business.

2. Taxes and regulations: India has a complex tax system that is often difficult for foreign companies to understand. Compliance with tax and other regulations can be time-consuming and costly.

3. Workforce and human resource management: India has a large but also very heterogeneous population. It can be difficult to find and retain skilled workers. Human resource management is also often a challenge.

4. Cultural differences: India represents a rich and diverse culture with specific idiosyncrasies and regional differences. Business practices differ in many ways from those in Western countries.

5. Infrastructure and logistics: India's infrastructure is often inadequate and can affect business. Logistics is a challenge due to the size of the country and transport conditions.

It is important that companies looking to invest in India carefully research local regulations and cultural differences in advance of their planning and seek advice from experienced experts to successfully overcome these challenges. The best way to do this is to contact InterGest South Asia. We have been successfully supporting companies in planning and realising a business base in India since 2007.

In India, there are several corporate forms for companies, including:

• Private Limited Company (Pvt Ltd)

• Public Limited Company (Ltd)

• Sole Proprietorship

• Partnership

• Limited Liability Partnership (LLP)

• LLC

These company forms offer different advantages and disadvantages depending on the needs and objectives of the business. It is important to understand the requirements and regulations for each type of company before choosing one. For example, some company forms require higher capitalisation or a certain number of shareholders, while others have less formal requirements.

The most common type of company in India is the Private Limited Company (Pvt Ltd). Its formation is relatively simple and requires less formal processes compared to other types of companies. The Private Limited Company must have at least two members at the time of incorporation who act as directors of the company. The founders may be individuals or corporate bodies resident in India or other countries. After incorporation, there are between two and fifteen directors, and there are certain requirements for residence of the directors and registration of personal details. One of the directors must be an Indian citizen. A Private Limited Company includes a limitation of liability for its shareholders. Shares for may not be publicly traded great flexibility in terms of property transfers. Thus, the company can own real estate in its own name, as well as other types of assets.

There are various requirements and procedures for setting up a company in India, which may vary depending on the form of company. In general, however, the following steps are required:

• Setting up a business account

• Obtaining a Digital Signature Certificate (DSC)

• Procurement of a Director Identification Number (DIN) for all directors of the Company

• Registering the name of the company with the Registrar of Companies (ROC) and obtaining approval

• Preparation of the Articles of Association of the Company and signature by all shareholders

• Submission of forms and documents to the ROC

• Obtaining the Corporate Identification Number (CIN)

• Receipt of the entry in the commercial register

When planning to set up a company, contact InterGest South Asia in good time to ensure that all the necessary regulations and requirements are met. We offer the complete range of services for setting up your company or branch office in India - starting with export consultancy, tax and legal advice, right through to the day-to-day execution of fiduciary administrative work from bookkeeping to reporting and controlling.

If you want to start your business in India, then InterGest South Asia is the right place for you. We offer comprehensive support in setting up your business in India. Our experienced experts are well versed in local laws and regulations and will guide you every step of the way in setting up your business.

We advise you on choosing the appropriate legal form, help you apply for the necessary permits and ensure that your company is properly registered. We also support you in opening a bank account, applying for tax numbers and obtaining business licences.

Our service package includes, among others:

• Establishment and fiduciary management of the branches,

• Business accounting and management information system (MIS) design,

• Cash and credit management including management of bank accounts,

• Review of contracts and assistance in negotiations,

• Staff recruitment and management,

• VAT management.

Added to this is tailor-made support in many service areas from our company-external network. Contact InterGest South Asia before you want to conquer the Indian market. It is worth it!