An Indian company can be registered with 1 or more foreign nationals as its directors. As per Companies Act 2013, in case of a private company with only 2 directors and both of them foreign nationals, at least one of them has to be a resident in India for a period of at least 182 days in the calendar year.
- Who We Are
- Business in India
- Company Incorporation in India
- Benefits of Company Incorporation in India
- Why Us?
Who We Are
Business Setup Worldwide is a platform to help you set up your business in India. We support in the creation of your company through expert counselling and incubation. We specialize in incorporation services, registration and licensing, apart from other value-added ancillary functions.
Vision-oriented provisioning, broad reach in terms of establishing multiple companies across various domains, adaptability to the evolving global market trends, and the ability to come up with innovative business strategies and provide requisite support in implementing such strategies distinguish Business Setup Worldwide, and put you in the forefront of business development to ensure growth.
Business Setup Worldwide's proprietary business design techniques, in addition to its comprehensive regional know-how and global reach, enable you to foresee changes in customer priorities and the target segment, and then model your businesses and modify your operations to seize the opportunities created by those changes.
Business in India
India is a multicultural nation in southern Asia. With a population of over 1 billion and a GDP growth rate of 7-8%, it is one of the fastest growing economies in the world. Part of what economists call BRIC (Brazil Russia India China), India now enjoys an emerging market status. This provides a positive boost not only for the economy but also for the skilled workforce; there is a sense of pride because India is keeping up with the rest of the world.
The prime domain for growth and opportunity is the internet. E-commerce, business process outsourcing, multimedia and software development have grown unprecedentedly in India, and the country boasts a high digital skill range. Many entrepreneurs have capitalized on the lack of geographical boundaries that the internet brings by selling Indian goods online.
Company Incorporation in India
A company in India can be incorporated as one of the following legal entities.
- Sole Proprietorship: In a sole proprietorship, the capital required by the company is supplied wholly by the owner oneself, and he/she has a complete control over all the aspects of the business. Consequently, the owner alone enjoys the profits of the business and alone bears the losses. The liability of the proprietor is unlimited, that is, it extends beyond the capital invested by the owner in the firm.
- Partnership: A partnership is defined as a relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them. The number of partners can range between 2 to 20 (or 10, in case of a banking company). The liability of the partners is unlimited.
- Private Limited Company: In a private limited company, the number of shareholders is limited to a maximum of 200, shareholders’ right to transfer shares is restricted, and an invitation to the public to subscribe to any shares or debentures is not allowed. This is the most popular form of business entity resorted to by foreign investors in India.
- Public Limited Company: A public limited company should have at least 7 shareholders and at least 3 directors. It is required to hold statutory meetings and obtain government approval for the appointment of its management. Also, it must publish a prospectus or file a statement in lieu of a prospectus before it can start conducting business.
- Limited Liability Partnership (LLP): A limited liability partnership (LLP) is an alternative corporate business entity that provides the benefits of limited liability, but allows its members the flexibility of organizing their internal management on the basis of a mutually-arrived agreement, like in a partnership firm. An LLP is a legal entity separate from its partners, and the liability of its partners is limited to their agreed contribution in the company. Furthermore, no partner is liable on account of the independent or unauthorized actions of other partners, thus safeguarding individual partners from joint liability created by another partners’ misconduct or torts.
- Joint Hindu Family Business: A Joint Hindu Family Business is a distinct type of business entity unique to India. In it, all members of a Hindu undivided family (a family that consists of a common ancestor and all his lineal male descendants and their wives and unmarried daughters) do business jointly under the control of the head of the family who is known as the 'karta'. The members of the family are known as 'co-parceners'. There is no legal upper cap on the legal number of members. The Karta has unlimited liability while the liability of the other members is limited to the value of their respective interests in the firm. A Joint Hindu Family Business comes into existence in abidingness of Hindu law and not out of contract. The rights and liabilities of co-parceners are determined by the general rules of the Hindu law.
- Co-operative: A co-operative is a voluntary association of 10 or more members (no limit on the maximum number of members) residing or working in the same locality, who join together on the basis of equality for the fulfilment of their economic or business interest. As against other types of business entities, the primary objective of a co-operative is service to the members rather than making profits. In a co-operative, the liability of every member is limited to the extent of their capital contribution. The shares of co-operative society cannot be transferred but can be returned to the society in case a member wants to forfeit one’s membership.
Benefits of Company Incorporation in India
India is a land of opportunities. Company formation can be chosen in India for the following reasons:
- India has a strategic position in Asia, and is supplemented by many ports and harbours on 3 sides. The country is peaceful, and very simple to access.
- India’s demographic dividend and growing economic power promises to be a magnet for foreign companies for decades to come. You will readily find people who speak English, with all business communication in the country happening in English itself. You can buy English language books and magazines in all major Indian cities and airports.
- With a 5,000-year heritage of welcoming foreigners to its shores, India invites diversity with open arms. India encompasses many religions, skin colours and languages, and you would not feel alienated when you enter the country.
- As an emerging economy, India is progressive and pro-development. It’s ease of doing business rank has been improving drastically of late, thanks to governmental measures to simplify procedures and boost digitization.
- The technically diverse workforce of India makes it very easy to employ the right talent for your company here.
India is a good mix of cultural heritage, industrial development and digital progress, offering sundry opportunities and a lucrative market for setting up your company. Business Setup Worldwide helps businessmen, entrepreneurs and investors establish their company in India through consulting, accounting and bookkeeping, and intellectual property services. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities, and allow corporates to enjoy their company formation process without worrying about the bureaucratic red tape and legal formalities. We guide you through your company formation, with your business objectives at the centre of our ecosystem, all the way. If you are wondering how to start a business in India, do reach out to us.