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Expand Business by Setting Up a Company in India

 

Setting Up a Company in India?

India is a powerful country, and its boosting economy has attracted a lot of IT, food, pharma, cosmetics companies. Setting up a company in India can be highly beneficial to multinationals owing to its fast-growing economy along with its reliable service sectors. The low labor costs, incentivized foreign ownership has attracted a lot of foreign investors, and that’s why the economy of this country is growing fast.

 

Register Company in IndiaChoosing the Right Business Structure of the Company

There are many business structures which can be formed in India but forming a Private Limited Company is the best one to choose. The most important reason why most of the businesses choose a private limited company is that this type of business structure can limit the liability of the owners against all the debts of the company.

The other business structures available in India are:

  1. One-person company (OPC): As the name suggests, this is the best business structure suitable if the business has a single owner and he is the sole proprietor of the company who carries all the work of the business.
  2. Limited Liability Partnership (LLP): This is a business structure where a group of partners forms the business. This type of business structure limits the liabilities of the company to the different partners based on their contribution.
  3. Private Limited Company (PLC): PLC is the widely used business structure and adopted by businesses which have a huge turnover. This type of business structure has members which are incorporated under the law of the company and has a separate legal existence.

In India, it is essential that a business must choose the right structure of the business while setting up a company in India as Income Tax Returns depend on the business structure. The accounts of the companies must be audited every year, and this may involve consultants for tax and audits. Before selecting the business structure, the investor or the businessmen must understand the legal compliances of each business structure and hence must choose the one that is most suitable to him.

Following is a list of questions which you must answer to yourself before setting up a company in India:

  1. How many partners do you plan to have in your country?
  2. How much capital investment do you plan to invest?
  3. How much liability do you want to bear in the business?
  4. How much Income tax do you wish to pay?

All these questions will help you in gaining more knowledge about the different types of business structure while setting up a company in India.

 

Register Company in IndiaRegistering a Company in India

Registering a company in India a simple process of setting up a company in India which includes the following:

  1. Obtain a digital signature certificate
  2. Get a direct identification number
  3. Register as a new user on the MCA portal for registering the name of the company which must be unique.
  4. Prepare articles and documents with the ministry of corporate affairs.
  5. Obtain a certificate of incorporation of a company

Setting a company in India can be very beneficial for you as the growing economy of this country in all the sectors can boost business profits.

Please contact us for more details.