Business Setup in India

Types of Businesses in India

In India, there are several types of business entities to choose from, each with its own set of advantages and disadvantages. Here’s an overview of the most common types:

Sole Proprietorship

A simple structure where the business is owned and run by one person. Best for small businesses with minimal risk.

  • Pros: Easy to start, low cost, full control.
  • Cons: Unlimited liability, limited access to capital.
Partnership

A business where two or more people share ownership. Ideal for moderate-sized businesses looking for shared control.

  • Pros: Shared responsibility, pooled resources.
  • Cons: Disagreements, shared profits, joint liability.
Private Limited Company

A private company with limited liability, ideal for startups and growing businesses looking for scalability.

  • Pros: Limited liability, access to investors.
  • Cons: Higher compliance, more regulations.

Business Setup Process for Foreigners

Setting up a business in India as a foreigner involves multiple steps and requires a deep understanding of the legal landscape. Here's a step-by-step guide:

Step 1: Visa & Registration

Foreigners need a valid business visa to enter India. After arriving, the first step is to register with the Foreigners Registration Office (FRO) within 14 days.

Step 2: Incorporation

Foreigners can set up a Private Limited Company or Limited Liability Partnership (LLP). This step involves submitting documents such as the Articles of Association, Memorandum of Association, and getting the name approved by the Ministry of Corporate Affairs.

Step 3: Taxation & Banking

Setting up a bank account and obtaining a PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) are essential steps. We assist with the paperwork and submission.

Step 4: Compliances

Compliance with Indian tax laws (GST registration, etc.) and filing annual returns are necessary for business operations. We guide you through each step.

Business Setup Process for Indian Nationals

For Indian citizens, the process to set up a business is simpler, but there are still key steps that must be followed for successful incorporation and operation.

Step 1: Business Registration

Indians can register as a Sole Proprietor, Partnership, LLP, or Private Limited Company. We assist with the documentation and legal formalities.

Step 2: Tax Registration

Obtaining a PAN, TAN, and GST registration are key steps in setting up a business. Our team simplifies this process for you.

Step 3: Bank Account & Finance

Opening a bank account in the company’s name and securing any necessary finance is important for running the business. We assist with this setup.

Step 4: Legal Compliances

Ensuring compliance with local laws, such as the Shops & Establishments Act, labor laws, and others, is essential. We handle these aspects on your behalf.