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Incorporation Simplified
We provide one stop firm/company registration and incorporation services to start business operations seamlessly.
Our Services
We provide everything you need for Business Incorporation. We provide one stop firm/company registration services to enable clients for start business operations seamlessly -
- LLP/Company Registration/Incorporation in India & filing of forms with MCA
- Preparation of AOA and MOA for company registration
- New firm registration - Partnership/Sole Proprietorship
- Trust Creation & Registration
- Society Creation & Registration
- Advise on capital structure and related matters
- Registration with Income Tax including consultancy on applicability of law
- Registration with GST state tax authorities including consultancy on applicability of laws
- Registration under workmen related laws
- Registration under Shop & Establishment and Professional Tax
- Import- Export Code (IEC) for cross border transactions
- Hand-holding and support in initial business processes setup
Sole Proprietorship firms
Sole Proprietorship Firm is one Person Firm which is owned and controlled by single person. Incorporation of Sole Proprietorship Firm involved opening of Current Bank Account and firm registration under various applicable laws including under Goods and Services Tax. It is quite simply form of business entity which is enable doing business in India with Less Compliance and Less Costing. The taxation of Firm is depending upon the person owing it.
Key Points:
- 100% ownership
- Fastest and easiest to established
- Unlimited liability
- Lack legal form of establishment
- Unsuitable for transfer of ownership
- Low cost of incorporation
Partnership Firms
When a group of individuals known as partner, decide to set up the business and form a relationship to share the profits of the business carried on, they form a partnership amongst them which is governed and regulated by partnership agreement formed between them. The partnership is the most popular form of organization to carry business in India. Income of Partnership firm is taxable at maximum marginal rate i.e. 30% plus applicable cess and surcharge.
Key Points:
- Formed with 2 or more partner
- Ownership is divided amongst partner
- Fastest and easiest to established
- Unlimited liability (unless registered)
- Lack separate legal entity
- Unsuitable for transfer of ownership
- Low cost of incorporation
- Higher tax rate
Limited Liability Partnership
A limited liability partnership is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence. Ministry of Corporate Affairs is the governing body in India which regulates all LLP’s. LLP’s are mainly governed by agreement executed amongst the partner and provision of LLP Act and rules made thereunder.
Income of LLP is taxable at maximum marginal rate i.e. 30% plus applicable cess and surcharge. However, the compliance of LLP is higher as compare to normal Partnership Firm and lower comparing to private or public limited companies.
Key Points:
- Formed with 2 or more partner
- Ownership is divided amongst partner
- Limited liability of partners
- Separate legal entity
- Unsuitable for transferability of ownership share
- Higher tax rate
Private or Public Limited Company
In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. The former may be further divided in public companies and private companies. Who may become a member of a private limited company is restricted by law and by the company's rules. In contrast, anyone may buy shares in a public limited company.
Incorporation of company is complicated involving various paper work and it also involved stringent periodic compliances. Ministry of Corporate Affairs is the governing body in India which regulates all Limited Companies in India following the Provisions of Companies Act. A Private Limited Company cannot invite general public to subscribe its securities whereas Public Limited Companies can offer its securities to public. A Private or Public Limited Company is identified by the company name, number of members, formation, directors, meetings, shares, etc.
Key Points:
- Formed with 2 or more director and shareholder
- Ownership is controlled through shareholding
- Limited liability of shareholder
- Separate legal entity
- Suitable for transferability of ownership in shares
- Lower tax rates
A foreign company or foreign investor can set-up business operations in India by following ways:
1. As Indian company - Wholly owned subsidiary Company
A foreign company invests 100% FDI in Indian company through automatic route then it becomes Wholly Owned Subsidiary Company of that Foreign Company. Incorporation of company is the easiest and fastest type of India entry strategy for foreign nationals and foreign companies. Foreign direct investment of upto 100% into a private limited company or limited company is under the automatic route, wherein no Central Government permission is required. However, such entities are required to file FC-GPR once incorporated to comply with FDI norms.
It is an entity whose whole share capital is in the hand of a foreign corporate body. It can be a private company limited by guarantee or shares or an unlimited liability company
Key Points:
- Easiest and fastest type of India entry strategy for foreign nationals and foreign companies
- Owners liability is limited to Share Capital
- Company must have a minimum of two Shareholders
- Minimum two Directors (one Director must be both an Indian Citizen and Indian Resident)
- 100% shares cam be held in combination of Foreign Companies and/or Foreign Nationals
- FC-GPR filing once incorporated to comply with FDI norms
2. As Indian company - Joint Venture
If any foreign partner or foreign investor is involved in a joint venture it requires governmental approval either from RBI or FIPB. Approval from RBI has to be taken it is covered under the automatic route. In any other case, approval from FIPB is necessary.
The entity has to select a local partner for joint venture then a Memorandum of Understanding or a Letter of Intent is to be signed which will state the basis for the joint venture agreement. All the terms should be discussed thoroughly and negotiated. It should address the important matters like Dispute resolution agreements, law Applicable, holding shares, Transfer of shares, Board of Directors Non-Compete, Confidentiality etc.
Key Points:
- Requires governmental approval either from RBI or FIPB
- emorandum of Understanding or a Letter of Intent is a key document for governance
- Ownership and management of entity governed by terms agreed with JV Partner
- Overall lower control over JV as compare to Subsidiary Company
3. Setting up a Liaison Office or Representative Office
Liaison Office or Representative Office are primarily setup for coordinating communications between parent/group companies and Indian businesses. For setting up a Liaison office or representative office in India the criteria has been prescribed by RBI.
They must have a profit making record in the immediate preceding 3 financial years in the home country and their net value should not be less than USD 50,000. It requires a specific approval of RBI under FEMA Law. The office will be given a Unique Identification Number by RBI. It has to obtain PAN from Income Tax Authorities when setting up the office in India.
It can undertake following activities:
- Representing parent company in India
- Promoting import/export in India
- Promoting technical/financial collaborations on parent company behalf
Key Points:
- Require prior approval from RBI and need to apply for PAN
- All the expenses are to be met entirely through inward remittances of foreign exchange
- Owner’s liability is unlimited and are fully responsible for affairs of the Indian office
- It cannot undertake any business activity and cannot earn any income in India.
4. Project Office
RBI prescribes the setting up of Project office in India by a foreign company. A foreign company can establishment office without the prior permission from RBI only when they have secured a contract from an Indian company to execute a project in India and :
- It is funded directly by inward remittance from abroad or
- It is funded by a bilateral or multilateral International Financing Agency or
- has been cleared by an appropriate authority or
- A company or entity in India providing the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the project
If the above conditions are not met the foreign entity has to approach the RBI for the approval.
Key Points:
- Established based on a contract from Indian Company
- Approval from RBI is not required if entity is directly funded by Head Office. However, need to apply for PAN to comply with tax laws.
- Owner’s liability is unlimited and are fully responsible for affairs of the Indian office
- It can undertake any business activity and earn income in India.
5. Branch Office of the Foreign Company
A Foreign company can conduct business activity in India by opening a branch office with the prior approval of RBI. It should have a profit in the immediately preceding five financial years and should have a net worth of not less than USD 100,000 in its home country.
The subsidiary company of other if does not fulfill the above condition then they can submit a Letter of Comfort from their parent company if parent company fulfills the above condition
It can undertake following activities:
- Import & Export of goods.
- Providing professional or consultancy services.
- Carrying out research work in area which its parent company is engaged
- Promoting technical/financial collaborations on behalf of the parent
- The representing parent company in India and acting as buying/selling agent in India.
- Providing IT services and developing software in India.
- Providing technical support for products supplied by the parent
- Foreign Airline/ Shipping Company.
Key Points:
- Require prior approval from RBI and need to apply for PAN
- Owner’s liability is unlimited and are fully responsible for affairs of the Indian office
- It can undertake specified business activity and earn income in India.
