Steps to Setup Company in India
The Larger Indian Consumer Potential
There are approximately 1.3 billion people (population) that make up the Indian Market. This number is one of the major reasons why the market in India is considered to be one of the fastest-growing ones in the whole world. Keeping all of the advantages that the Indian Market provides, the FDI i.e. the Foreign Direct Investment in the country has also increased rapidly. These investments reveal that there are a lot of people from outside of India that setup company in India and start operating in it.
Today as one of the best-consulting companies that helps people to setup business in India, DBPL is going to list the steps that one can follow to setup Firm in India efficiently.
Key Steps in Setting up Work (Business) in India
The first step you can do when you plan to setup business in India is to register a Private Limited Company. This type of company is considered to be one of the easiest ones to set up and operate not just for people in India but also for people from other origins. In India, if any Foreign Direct Investments (FDI) happen that has its range up to 100% in a private or limited company, does not require any special permission from the Central Government, which makes it easy to do investments and setup Firm in India very easily.
The next, 2nd step, thing that you can do while you plan to setup company in India is to register for a branch office i.e. BO or a project office i.e. PO or a liaison office i.e. LO. All of these require Government approval and RBI approval as well, and cannot be done without their permission. It must have become quite evident by now that the cost of registering for the PO, LO, or BO is much higher than registering your Firm as a Private Limited Company.
Basic Requirements for Setting up Company in India
Now let us see some of the mandatory requirements that are required to setup company in India
To setup business in India, you need two people to sign as the partners of the company. After you have found partners, you need an address in India.
Now, if you are planning to open as a private limited company, you need two directors for it and a minimum of two shareholders as well. These shareholders don’t necessarily have to be two individuals but they can also be two companies as well.
The next thing that you need to make sure of is that one of the Directors of the company should be an Indian citizen and an Indian resident who has been staying in India for more than 186 days.
We recommend setting up the structure of the company in such a way that it consists of three Directors and in it, one of them is Indian and the rest of them can be foreign nationals. The interesting part in this system is that there is no rule that the Director should have a certain amount of ownership in the company, so you can keep the shareholdings in such a way that the two foreign national Directors get the 100% of the shares.
Registered Company Address in India
After all of this, one thing that you cannot bypass is having an Indian address that will act as the company’s address. After helping a lot of people to setup Firm in India, we found out that these people prefer setting up offices in the metro cities like Delhi, Mumbai, Chennai, and Kolkata. However, if you want to, you can setup this at any location throughout the country.