Setting up in India is a sequence: decide the structure, incorporate it, obtain the registrations the activity needs, and then keep up with the obligations that follow. The detailed comparison of structures sits in the Company Formation Centre.
This describes the subject in general terms and is not advice; what applies depends on the facts, and the law changes.
Understanding the service
Indian law offers several forms: sole proprietorship, partnership firm, limited liability partnership, one person company, private limited company and public limited company. They differ in legal identity, liability, ownership, how capital can be raised, compliance and tax treatment.
Companies and LLPs are incorporated electronically through the Ministry of Corporate Affairs portal. Company incorporation uses the integrated SPICe+ form, which also covers several registrations through its linked forms.
Not every registration applies to every business. GST depends on the supply, the states involved and turnover; labour registrations depend on headcount and the state; some activities need sector approvals. The set is established from the facts, not assumed.
Where a non-resident or foreign company is involved, foreign exchange rules apply to the investment and to its reporting, in addition to company law.
When it becomes relevant
- Founders deciding between an LLP and a private company
- A proprietor whose business has outgrown its structure
- A foreign company setting up an Indian entity
- A business about to start operations and needing its registrations in place
- A newly incorporated company dealing with its first-year obligations
What the work usually covers
- Discussion of the structure, against ownership, liability, funding and compliance
- Name availability and reservation
- Digital signatures and director or partner identification numbers
- Charter documents, and the incorporation filing
- PAN, TAN and bank account formalities
- GST and other registrations, where applicable to the activity
- First-year matters: auditor appointment, statutory registers, commencement filings
- The ongoing accounting, tax and filing calendar
Framework and sources
The law and professional standards this work is carried out under. Links open the official site.
How the work runs
- Decide the structureWeigh ownership, liability, funding plans and the compliance the owners will carry.
- Reserve the nameCheck availability and apply for reservation.
- PrepareObtain digital signatures and identification numbers, and draft the charter documents.
- IncorporateFile the incorporation application and respond to queries from the Registrar.
- RegisterObtain PAN, TAN, the bank account and the registrations the activity requires.
- Set up complianceAppoint the first auditor, open the statutory registers and agree the filing calendar.
A general sequence. Engagements differ, and the scope of each is agreed in writing.
Common questions
LLP or private limited company?
An LLP has a lighter compliance load and no shares; a private company can issue shares to investors and is generally preferred where outside equity is expected. The Company Formation Centre compares them factor by factor.
How long does incorporation take?
It depends on name availability, the completeness of documents and processing by the authorities. We do not state a fixed time.
Is there a minimum capital?
The Companies Act no longer prescribes a minimum paid-up capital for private and public companies, although a company limited by shares must still have share capital. Sector regulators may impose their own requirements.
Can a foreign national be a director or shareholder?
In most structures yes, subject to conditions. A company must have at least one director resident in India, an LLP at least one resident designated partner, and a one person company is open only to resident Indian citizens. Foreign investment is subject to the foreign exchange rules.