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.
1,000 's of Businesses Worldwide Trust Us!
4.4/5.0
5.0/5.0
3.8/5.0
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.
Our Clients
Types of Business Structures in India
Indian economy incorporates various businesses that have entirely distinct activities to perform. Here are some of the major Business structures that you will commonly find while analyzing the economic performance of the nation.
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.
This is a business structure in which two or more than 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 ideas.
2. Easy to Start
If you do not wish to register your firm then 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.
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.
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.
This type of business structure is increasingly preferred by startups because it allows outside funding’s to be raised easily, limits shareholder’s liability and gives them permission of offering ESOP for attracting 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
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 at least be 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 Incorpotated in India is not authorized for starting business upon the grant of the certificate of incorporation. For getting 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
A Liaison Office can be established with the Government of India’s approval. The basic role of a Liaison Office is very limited and involves promotion of exports/imports, collection of information, and facilitation of technical/financial collaborations. A Liaison office is not entitled for undertaking any sort of commercial activity directly or indirectly.
Foreign companies who have a plan of executing specific projects in the Indian territory can set up temporary site offices in India where activities only relating to that project can be carried out. The Indian Government has now granted general permission to foreign entities for establishing project offices which are subjected to specified conditions.
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 the permission of carrying out the manufacturing activities all by 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.
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 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 ideas.
2. Easy to Start
If you do not wish to register your firm then 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’s to be raised easily, limits shareholder’s liability and gives them permission of offering ESOP for attracting 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 at least be 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 Incorpotated in India is not authorized for starting business upon the grant of the certificate of incorporation. For getting 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
Representative Office / Liaison Office
A Liaison Office can be established with the Government of India’s approval. The basic role of a Liaison Office is very limited and involves promotion of exports/imports, collection of information, and facilitation of technical/financial collaborations.
A Liaison office is not entitled for undertaking any sort of commercial activity directly or indirectly.
Project Office
Foreign companies who have a plan of executing specific projects in the Indian territory can set up temporary site offices in India where activities only relating to that project can be carried out. The Indian Government has now granted general permission to foreign entities for establishing project offices which are subjected to specified conditions.
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 the permission of carrying out the manufacturing activities all by 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.
Have any project in mind?
How to Register a Private limited Company in India?
Minimum Requirements:
- Minimum 2 Directors
- Minimum paid-up capital of Rs. 1,00,000/-
- Digital Signatures for all Directors
- Minimum 2 Shareholders (both directors and shareholders can be the same)
- Proof of Registered Address
- DIN for both Directors
- Consent from subscriber or director
- NOC from the premises owner
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.
Application for DIN
Every individual who intends to be appointed as the director of a company shall compulsorily make an application for allotment of DIN in form DIR-3 to the Central Government in such a manner and along with such fees as may be prescribed in the law.
Checking for the Company Name Availability
Select, in order of your preference, a few names, not less than four, that indicate the main objectives of the proposed company. Don’t forget to ensure that the name doesn’t resemble the name of any other company that is already registered and also doesn’t go against the provisions of the Emblems and names Act, 1950.
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
Payment of stamp duty and form fees
After filing the documents on the MCA online portal, you are required to pay the necessary fees.
ROC Verification
After the form is received along with applicable fees, the ROC verifies and scrutinizes all the documents and attachments and suggests necessary changes, if required.
Issue of the Certificate of Incorporation
If the registrar is completely satisfied that all the necessary requirements have been complied with by the company, it will register the company and issue a Certificate of Incorporation to the company. The date mentioned in the certificate is the main date of incorporation of your company.
We’ve been helping Customers globally.
Book a consultation appointment with our professionals now.
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.
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.
However, in the case of any other entity like a partnership or a company, the rate of tax applicable is 30%.
Sweat Equity in an Indian Company
There are distinct rules for sweat equity shares in a public limited and a private limited company in India. Here are the provisions relating to the same.
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 stck 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
We help shape your ideas and turn them into real
businesses.
Company Registration in India
Needless to say, operating in India requires an in-depth knowledge of all the statutory and legal aspects. Drafting of documents like Memorandum of Association (MoA) and Articles of Association (AoA) requires an expert level knowledge of the Indian laws and business practices. IMC has over 35 years of experience in this field and can be your partner guide in Company Formation in India.
Our consultancy excels at setting up of LLCs, limited liability partnerships, joint ventures and wholly owned subsidiaries of foreign companies looking to foray into Indian markets. We have the legal expertise and the experience to help you decide which legal entity would be the right choice for you. We can consult you not just on the legal matters but also the subsequent company registration and financial questions.
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
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 Our Customers are Saying
The process of setting up a startup in India is unfamiliar to me, but the outstanding service, advice, and direction of IMC made the process easy. I am really delighted with my total experience.
The IMC team is prompt and responsive, offering one-stop solutions for all your business and setup needs in India.
IMC has been a great partner in our journey towards success. We are grateful for their excellent service and support.
We have been working with IMC for a number of services, and we have found their team's assistance to be excellent. Their experts helped us with company formation, and they continue to provide ongoing support.
Let us Help You Today!
We'd be happy to discuss your needs and provide you with a quote.