India is a land of huge opportunities for businesses from other countries. But the legal process to set up your company can feel confusing. That’s where we come in. Indusentry is your guide on the ground. We help you with every step, from the first idea to paying your taxes.
This article breaks down the key legal steps in simple language.
First, Choose How You Want to Set Up Your Business
This is your most important first choice. It affects your taxes, your risk, and how you run your company.
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Private Limited Company (Ltd.)
- What it is: The most common choice. The company is its own legal person. This means the owners’ personal assets are safe if the business has problems.
- What you need: At least 2 owners and 2 directors. One director must live in India.
- Good for: Most businesses that plan to grow and make a profit in India.
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Limited Liability Partnership (LLP)
- What it is: A mix between a company and a partnership. The partners have limited liability, but it has simpler rules than a company.
- What you need: At least 2 partners. One must live in India.
- Good for: Smaller businesses, professional services, or projects with a partner.
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Branch Office or Liaison Office
- What it is: An extension of your main company back home. A liaison office cannot earn money in India. It is only for market research and promotion. A branch office can do business.
- What you need: Approval from the Reserve Bank of India (RBI). This takes more time and is not for everyone.
- Good for: Companies that want to test the market before fully starting up.
Our Advice: Talk to us! We will help you pick the best option for your goals.
The Main Steps to Register Your Company
Once you pick your structure, you need to register. For a Private Limited Company, the main steps are:
- Get Digital Signatures: Since everything is done online, the directors need a digital signature to sign documents.
- Get a Director ID: Every director needs an identification number from the government.
- Choose a Name: We help you pick a unique name for your company and get it approved.
- File the Main Forms: We prepare and submit the main application to the government. This includes your company’s rules (MOA and AOA) and details about your office and directors.
- Handle FDI Rules: Most businesses get automatic approval for bringing in foreign money. We make sure your investment follows all the rules and reports to the RBI.
After the government approves your application, your company officially exists! You will get a Certificate of Incorporation and a company ID number (CIN).
What to Do After Your Company is Registered
Your work isn’t done after you register. You need a few more things to start operating.
- Open a Bank Account: You must open a business bank account in India. All your business money must go through this account.
- Register for GST: The Goods and Services Tax (GST) is a key tax. If you sell goods or services over a certain amount, you must register for it. It’s a crucial step for doing business.
- Register Your Employees: If you hire people, you are required to register for professional tax and social security schemes, such as the Provident Fund (PF).
Why You Should Not Do This Alone
Trying to handle this process by yourself is hard. The rules can be complex and change often. A small mistake in your application can cause long delays or get it rejected. Also, after you set up, you have to file yearly paperwork and taxes. Missing deadlines can lead to heavy fines.
This is where Indusentry makes it easy. We know the rules inside and out. We handle the paperwork, guide you on the right choices, and make sure you follow all the laws. This gives you the confidence to focus on what you do best—running your business.
Let us handle the legal details. You focus on building your success in India.
Ready to start your journey? Contact Indusentry today for a free consultation.