Company Incorporation – India
A company is an association formed for the purpose of doing business. The Companies Act 1956 states that “company” includes companies incorporated and registered under the Act. It is a separate legal entity and constitutes directors and shareholders. According to the activities, the company can be classified.
I. Based on business activities: the company can be classified based on its activities as manufacturing activity, service activity, non-profit activity, etc.
II. Based on responsibilities: can be limited or unlimited.
III. According to the membership: it can be public, private and governmental
IV. According to the place of registration: Indian or foreigner
V. Based on Control – Holding or Subsidiary
Limited liability company –
o This is a non-governmental organization
o The maximum shareholders here are limited to fifty and the minimum is two.
o The shareholders do not have the right to transfer the shares.
The procedure to establish a Private Limited Company is
o Select a name for the company
o Request Identification Number of Directors and Digital Signatures
o Draft Memorandum and Bylaws
o Presentation of documents before the Registrar
o Payment of fees
o Obtain certificate of incorporation
Limited public company
o Offers actions to the public
o Must have at least 7 shareholders
o You must have at least three directors on your board of directors
o Must hold statutory meetings regularly
The procedure to establish a Private Limited Company is
o Select a name for the company
o Request Identification Number of Directors and Digital Signatures
o Draft Memorandum and Bylaws
o Presentation of documents before the Registrar
o Payment of fees
o Obtain certificate of incorporation
o Obtain certificate of commencement
A foreign company can also establish a liaison office or branch in India
A liaison office is a communication channel between the central office and the workplace. The role of a liaison office is to represent your head office and promote your business.
A branch can
o Import / export goods
o Offer consulting services
o Do research work
o Represent the parent company as a buying or selling agent
o Offer technical support to the products supplied by the parent company
The time required to register a company in India would be from a few hours to three months.
Advantages of establishing a company in India
India has double tax treaties with many countries
Tax exemptions for companies established in SEZs
Tax incentives for IT companies
Qualified English-speaking employees available at nominal rates