Setting up a New Business in India

You can avoid piles of paperwork and take our assistance for company incorporation. We will assist you with India company registration at a reasonable cost.

Get Professional Assistance for Company Formation in India

India is one of the fastest growing economies in the world with plenty of opportunities for business startups. Therefore, many new players are always looking to enter the Indian markets or expand their existing businesses to leverage India’s competitive advantage. Whether it be a foreign company eyeing a business set up in India, or an Indian company looking to expand, The Companies Act, 2013 governs all such entities and makes it necessary for them to register. We at IMC Group cater to all the requirements regarding such company formation in India.

Why Choose IMC for Company Formation and Registration in India?

Do Your Registration From Anywhere

You do not need to be physically present here to set up and manage your company in India.

Streamlined & Simplified Processes

We’ve simplified and streamlined all the processes for you to make it quick and simple to get your company started.

Safe & Secure Storage

No need to save hundreds of documents and paperwork. You can now store all important documents on the cloud and simply access it from anywhere.

Transparent Pricing Model

We do not burden you with any hidden fees. There’s just one cost to get you up and running.

Types of Business Structures in India

Sole Proprietorship

This type of business is operated and managed by a single person. There are no such registration formalities, and they are recognized by other registrations like sales or service tax registration and therefore, it is very famous among small traders and merchants.

Key features

1. Unlimited Liability

Here, the owner and firm are not separate legal entities and therefore, the owner is responsible to pay off everything. This is the reason why sole proprietorship is suited only for small businesses.

2. Easy to set up and carry on

Since there are no separate formalities for registering a sole proprietorship business in India, anyone can easily start it without any professional help or prior knowledge. If you are dealing with some specified commodity, you just need a license or permit to sell the same.

General Partnership

This is a business structure in which two or more than two people handle the business operations following the objectives and terms stated in the Partnership deed. This structure has become a less viable option for people after the introduction of limited liability partnerships where partners are not liable to pay from their personal assets. However, easy and optional registration, low-cost setup, and minimum compliance makes it a good choice for several small scale businesses.

Key features

1. Unlimited Liability

The partners in the business are liable to pay off all the debts of the firm if it fails to do so. Also, if the partners choose to opt for registering the firm, the process may be very costly. Therefore, if you don’t have a comparatively small business then choosing a general partnership structure is not a good idea.

2. Easy to Start

If you do not wish to register your firm your business can start just after your partnership deed is ready. However, if you wish to register the firm then also the time taken will be less in comparison to the LLP registration process.

3. Relatively Inexpensive

Since there are not many minimum compliances associated with General partnership, it is easy to start. The registration process is also very basic and not so lengthy, as in the case of an LLP.

Limited Liability Partnership

This is an improvement in the general partnership because the partners have limited liability and offer each of the partner protection from misdeeds. negligence, or incompetence of the other partners. It is also considered as a relatively cheaper approach to incorporate features of a Private Limited Company.

Key features

1. Startup cost

Starting an LLP is comparatively cheaper than setting up a private limited company because there no compliance costs or paid-up capital associated with it.

2. Suited to non-scalable businesses

If your business does not require an equity funding then LLP is the most suited option because it incorporates features of both Private limited company and general partnership.

3. Tax Advantages

The tax surcharge applicable to companies with profits above 1 crore does not apply to LLPs. Also, the loans given to partners are not taxable.

4. Number of Partners

No limit is defined on the number of partners in an LLP.

One-Person Company

This is a newly introduced business structure that gives the single business owners entire control over the operations of his/her company and limits his/her liability towards the business. There is no scope of raising an equity capital since the owner of the company is also the director and the only shareholder.

Key features

1. Suited to Solo Entrepreneurs

It is made to suit the limited liability requirement of a sole-proprietor. However, after exceeding a certain turnover or profit amount, the OPC needs to get converted into a Private Limited Company.

2. Compliance Requirements are Higher

The owner will have to comply with various requirements of the MCA like conducting a statutory audit, submitting annual and IT returns because there are no such AGMS of an OPC.

3. Tax Advantages

There are some industry-specific benefits that an OPC enjoys, just like a Private Limited Company. However, taxes are payable at a flat rate of 30% on profits, MAT applies, as does DDT. But, if you are looking for a business structure with a maximum tax benefit, then LLP is a better option.

4. Number of Partners

No limit is defined on the number of partners in an LLP.

Private Limited Company

This type of business structure is increasingly preferred by startups because it allows outside funding to be raised easily, limits shareholder’s liability and gives them permission to offer ESOP to attract top talents in the organization. Since private limited companies are required to hold board meetings and file an annual return to the MCA, they are seen as more credible organizations as compared to any other mentioned-above.

Key features

Limited Liability
High Start-up Cost
Greater Compliance
Fewer Tax Advantages

Public Limited Company

A public limited company has the capacity to offer shares directly to the general public and can also accept foreign direct investments.

For setting up this kind of entity, there must be at least three directors and at least seven shareholders. One of the three directors must be an India resident.

The business must strictly hold statutory meetings along with government approvals for appointing people on the management positions. Shareholders can transfer their shares at ease and their liability is limited to the extent of their capital contributions.

Before commencing with the operations, the company must have a trading certificate and a published prospectus.

Key features

It must hold statutory meetings and also obtain approvals from government before the management appointment procedures
Since, a public company incorporated in India is not authorized for starting business upon the grant of the certificate of incorporation. To get eligible to commence a business as a corporation in India, it should mandatorily obtain another document known as trading certificate
It should publish a prospectus or some statement in lieu of a prospectus before transacting any sort of business

Branch Office

Foreign companies that are engaged in trading and manufacturing activities abroad are allowed to set up a Branch Office in Indian Territory for the enlisted purposes:

Import/Export of goods, rendering consultancy or professional services
Performing the research work where the parent company is already engaged
Promoting financial or technical collaborations between the parent or overseas group company and the Indian companies
Representing the Indian parent company and performing as buying or selling agents in India
Rendering services in India related to Information Technology and software development
Rendering technical nature support to the products that are supplied by the group/ parent companies
Foreign shipping or airline company

A branch office does not have permission to carry out the manufacturing activities all on its own, but it is permitted to subcontract those activities to any random Indian manufacturer. Branch Offices that are established with the RBI’s approval, may remit profit from outside India of that branch, net of the Indian taxes applicable and subject to the guidelines and Permissions from RBI for setting up branch offices is granted by the RBI itself.

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Required Documents for Company Registration in India

Registering a company in India involves submitting several essential documents, which may vary by company type. The commonly required documents include:

Director Identity and Address Proof: Mandatory PAN card, and one of the following—Aadhaar card, Passport, Voter ID, or Driving License.
Passport-sized Photographs of Directors
Registered Office Proof: Recent utility bills (not older than two months), rent agreement and NOC from the owner if rented, or sale deed/property tax receipt if owned.
Consent to Act as Directors (DIR-2): A declaration by directors agreeing to their roles
Declaration by First Subscribers and Directors (INC-9): Confirming eligibility and compliance under the Companies Act.
Memorandum of Association (MOA): Outlines the company’s objectives and scope.
Articles of Association (AOA): Details the internal management rules, including shareholder and director duties. Details the internal management rules, including shareholder and director duties.
Digital Signature Certificate (DSC): All directors must sign documents digitally.
Director Identification Number (DIN): Obtainable online via the Ministry of Corporate Affairs.
Additional Documents (if applicable): This may include board resolutions, consent letters, or NOCs based on specific registration requirements.

How to Register a Private limited Company in India?

Minimum Requirements

Now, you can understand the company registration process through the following steps.

Obtaining Digital Signatures

At least one director must apply for the Digital Signature Certificate (DSC), which is mandatory for filing the company registration documents. Only a few scanned documents and details will be required for completing the procurement process. DSC is compulsory for signing the E-forms relating to incorporation life Form INC-1 and other documents of the company.

Filing of Name Availability Application

Apply to the concerned ROC for ascertaining the availability of names in INC-1 of General Rules and Forms along with the prescribed fee. If the name you propose is not available then apply for a fresh name on the same application form. MCA has duly prescribed certain rules for the name availability step, so it is advisable to thoroughly check guidelines for the same before actually applying.

After the name approval of the applicant, the ROC will immediately issue a Name availability letter concerning approval for the availability of a name for your proposed company. The name will have validity for a period of sixty days from the date on which the application for the reservation was made. The applicant is eligible to apply for registration of the new company by filing the required forms INC-1, within six months of completion of the name approval.

Drafting the MOA & AOA

After your name is approved, make arrangements for drafting the Memorandum and Articles of Association by the legal practitioners, vetting of the same by ROC, and then printing of the same
Then, make arrangements for their stamping with the appropriate stamp duty
The main objects of your company must strictly match with the objects shown in e-form INC-1
The articles must also be presented in respective forms as prescribed in Tables F, G, H, I, and J in Schedule-1 as applicable to your company
Get them signed by at least two subscribers in his own hand with his father’s name, address, occupation, and the number of shares subscribed for along with at least one person witnessing the process
Ensure that these documents are dated on a date that falls after the date of stamping
The memorandum must be presented in respective forms as prescribed in Tables A, B, C, D, and E in Schedule-1 as applicable to your company

Filing various forms with the ROC

The following documents are necessarily required to be filed with the ROC for setting up a private limited company:

Memorandum of Association with a duplicate thereof. (duly stamped)
Declaration by specified Professional in INC-8
Residential Proofs
Verification of the Signatures of all subscribers in Form INC-10
A copy of the letter of the Registrar of Companies clarifying the availability of the duly proposed name
Articles of Association with a duplicate thereof. (duly stamped)
Affidavit by the subscriber to the Memorandum in Form no. INC-9
Identity Proofs
e-Form No. 1, with all the prescribed stamps, for Company incorporation
Documents that evidence the payment of prescribed registration and filing fees

How to Select a Business Structure while Applying for Indian Company Registration?

Here are some very crucial questions that every entrepreneur must ask himself before finally making a business structure decision.

Number of Owners/Partners to be engaged in the Business

If you are a single person owing the entire initial investment that is elementary to the business, the ideal choice will be a One Person Company. Whereas, if the business you are engaged in has two or more owners and is actively seeking the investment amount from other parties as well, a Limited Liability Partnership (LLP) or a Private Limited Company would be best suited to you, depending upon the scale of operation you wish to choose.

Initial investment determines your business structure choice greatly

If you want the initial expenditure to be less, a Sole Proprietorship will be a wise choice, and even an HUF or a Partnership would be fine. But, if you have the surity that you will be able to recover the compliance and setup costs, you can anytime opt for opening a One Person Company, a Private Limited Company, or an LLP.

Willingness of bearing the liability related to the business

Small structures of business like sole proprietorship firms, HUFs, and partnership firms have unlimited liability associated to them. This implies that in case any default happens in loan amounts, the entire money of that loan or liability will be recovered from the partners or members engaged in their profit sharing ratio. There, the risk towards your personal assets is higher in these selected cases.

On the other hand, LLPs and Companies only have a limited liability towards their owners. This indicates that the liability of its members will be restricted only to the amount of contribution they are making or the value of shares every member is holding.

Tax Rate Applicability to the selected business

The income tax rates that are applicable on a sole proprietorship and an HUF are ordinary slab rates in India. In a sole proprietor’s case, the income of business is the same individual’s other incomes.

However, in the case of any other entity like a partnership or a company, the rate of tax applicable is 30%.

Investor Funding Plans

Getting outside investments is extremely difficult when your business structure is unregistered. Business entities like Private Limited Companies and LLPs are trusted by investors. Make sure that you are choosing the right structure and try to seek the help from an expert so that you can get registered under required guidance.

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Sweat Equity in an Indian Company

Sweat Equity (Indian Public Company)

Section 79A of the Indian Companies Act lays down the provisions for issuing the Sweat Equity shares in India. It states that a company is allowed to issue sweat equity shares of such a class that is already issued by the company on fulfilment of the following conditions:

The sweat equity issue is authorized through a special resolution passed ion the general meeting conducted by the company
The resolution details the specifications like the current market price, number of shares, consideration, if any, and the class(es) of employees or directors to whom such equity shares will be issued
Keeping in mind the above provisions, you can understand that issuing Sweat Equity at the time of incorporation of your Company is not possible as one year has not passed since the incorporation date
Not less than one year has, at the issue elapsed since the date on which the company was entitled to commence business
The company whose equity shares are listed on a stock exchange will be able to issue sweat equity shares in accordance with the regulations laid down by the Securities and Exchange Board of India (SEBI) in this behalf

Our Market Research & Entry Solutions

Massive Market Potential

With the second largest global population, India is the third-largest economy of Asia in GDP terms. This statement is enough to clarify the potential Indian markets have for every kind of business operation. Along with this, you can also take benefit of the numerous FTAs and DTAAs that are signed by the government for providing access to major consumer markets that include Australia and China.

Operation Cost is Low

The cost of running businesses in India is very low in comparison to other countries that means your net profits will always be higher. Businesses can always expect to gain from the low average salary levels, low electricity costs, and low paid-up capitals.

Government Incentives are attractive

All companies operating in India are entitled to fabulous economical incentives such as:

Complete corporate tax exemptions
Financial grants
Reimbursement of operation costs
Accelerated depreciation on the value of all machinery and types of equipment
Refund of research costs, trading costs, and project investments

Value Proposition for You

Our sole aim is to offer all our services under a single umbrella to eliminate the need for companies, especially foreign companies, to coordinate business with different service entities. While helping you with your company registration in India we strive to minimize the regulatory, transaction and other related risks so your business can run smoothly.

We at IMC Group will ensure a seamless process if you are looking for company formation in India. Let us discuss the right legal framework for your type of business based on your objectives so we can structure the right strategy to incorporate your company.

What IMC Offers?

We provide a one-stop solution to tackle all your requirements right from taking care of the documentation to the ongoing follow up services till your business set up in India is ready to function. Some of our services include:

Legal Set-up

Company formation / incorporation
Government approvals for foreign investment in a wholly owned Indian subsidiary or a joint venture company
Establishment of a Liaison Office, Branch Office and Project Office after getting due governmental approvals
Tax Registrations under various laws like GST, Excise, Income Tax, ESIC, Foreign Trade, etc

Physical Set-up

Assistance with locating office space for your new establishment in India
Providing the communication address
Assistance with lease agreements

Ongoing Services

Audit and Assurance Services
Taxation Services
Compliance Services
General Business Support and Advisory Services
Secretarial Services
Legal Support Services

Different Business Establishments in India

PARTICULARS	Private	Public	OPC	LLP
Min Directors	2	3	1	2 Designated Partner
Max Directors	15	15	15	N/A
Min Members	2	7	1	2
Max Members	200	Unlimited	1	No Limit
Resident Director	1 Mandatory	1 Mandatory	1 Mandatory	1 Designated Partner
Transfer of Ownership	Ownership can be transferred	Ownership can be transferred	Ownership can be transferred to nominee in the event of death of owner	Ownership can be transferred
Subscription of shares	Public subscription not allowed	Public subscription not allowed	Public subscription not allowed	Public subscription not allowed
Managerial Remuneration	No limit for managerial personnel	Shareholder approval is required, if remuneration payable is above limits	NA	Remuneration is based on LLP agreement
Commencement of Business/Operations	Declaration to be filed prior to commencement	Declaration to be filed prior to commencement	Declaration to be filed prior to commencement	Immediately after obtaining certificate of incorporation
Legal Status	Pvt Co is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act	Public Co is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act	OPC is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act	LLP is a separate legal entity registered under LLP Act, 2008. The Designated partners of LLP are liable for contraventions under the act
Governing Act/ Law	Companies Act, 2013	Companies Act, 2013	Companies Act, 2013	LLP Act, 2008
Annual Statutory Filings	Annual statement of accounts & annual return with ROC	Annual statement of accounts & annual return with ROC	Annual statement of accounts & annual return with ROC	Annual statement of solvency & annual return with ROC
Annual Filings & Audit	IT return to be filed. Audit mandatory	IT return to be filed. Audit mandatory	IT return to be filed. Audit mandatory	IT return to be filed. Audit mandatory in case turnover exceeds INR 40 lakhs or contribution exceeds INR 25 lakhs

Company Formation in India - FAQs

Is a registered office address required for company registration in India?

Yes, a registered office address in India is mandatory for company incorporation. It is used for all official communications and must meet all legal requirements.

What should investors consider when opening a company in India?

Investors need to register statutory documents, including the articles of association and memorandum of association, signed by a company secretary. They must also pay registration fees, including stamp duty. Once these steps are completed, they’ll receive a certificate of incorporation to proceed with tax registrations and other essential operations.

What is the timeline for registering a company in India?

The registration timeline for a company in India typically ranges from 15 to 30 days, depending on the company type, documentation accuracy, and the Registrar of Companies (ROC) processing time.

What are the essential requirements for registering a company in India?

The requirements vary by company type. A Private Limited Company requires at least two directors and two shareholders. A One Person Company (OPC) needs one director and one shareholder.

What is a sole trader in India?

In India, a sole trader or individual entrepreneur operates a business under their own name, managing all aspects single-handedly. They bear full personal liability for financial issues such as debts and bankruptcy due to no legal separation from the business. However, they benefit from straightforward registration and minimal regulatory requirements.

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Setting up a New Business in India

Why Choose IMC for Company Formation and Registration in India?

Types of Business Structures in India

Sole Proprietorship

Key features

1. Unlimited Liability

2. Easy to set up and carry on

Ready to uncover the endless possibilities in India's booming market?

Required Documents for Company Registration in India

How to Register a Private limited Company in India?

Obtaining Digital Signatures

How to Select a Business Structure while Applying for Indian Company Registration?

Your vision, our mission. Let's discuss

Sweat Equity in an Indian Company

Our Market Research & Entry Solutions

Value Proposition for You

What IMC Offers?

Different Business Establishments in India

Company Formation in India - FAQs

A Member Firm of Andersen Global

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Get In Touch

Relevant Articles

Unlocking Key Perspectives

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