Overview of Company Incorporation in India

India is a rapidly growing economy, offering significant opportunities for businesses to enter or expand in its markets. The Companies Act, 2013 governs all businesses, requiring registration for both Indian and foreign companies.

We provided end-to-end solutions for company incorporation, ensuring legal and compliance support for businesses setting up in India.

Steps to Form a Business in India

• Choose a Business Structure:
  • Options include Private Limited Companies, Public Limited Companies, One-
  • Person Companies (OPC), and Limited Liability Partnerships (LLP).
• Key Steps:
  • Obtain a Director Identification Number (DIN).
  • Acquire a Digital Signature Certificate (DSC).
  • Get company or LLP name approval from the Ministry of Corporate Affairs (MCA).
  • Prepare and submit the required documents, such as the Articles of Association (for companies) or LLP Agreement (for LLPs), to the MCA.

Types of Business Entities in India

• Private Limited Companies: Suitable for small to medium-sized businesses with limited liability and a separate legal identity.
• Public Limited Companies: Ideal for larger businesses with public shareholders and the ability to raise capital from the public.
• One-Person Companies (OPC): Designed for sole proprietors to operate within a corporate framework, offering limited liability.
• Limited Liability Partnerships (LLP): A hybrid structure combining the benefits of a partnership and a company, offering limited liability to partners and operational flexibility.

Key Registrations and Requirements

• Permanent Account Number (PAN):
  • Mandatory for financial transactions and tax compliance.
  • Different forms and documents are required for residents and non-residents.
• Bank Account:
  • Open a business bank account and deposit initial capital as per the Articles of Association (for companies) or LLP Agreement (for LLPs).
• Goods and Services Tax (GST) Registration:
  • Required for businesses to collect and remit GST.
  • Obtain a unique GST Identification Number (GSTIN).
• Tax Deduction Account Number (TAN):
  • Necessary for deducting and remitting tax at source (TDS).
• Import-Export Code (IEC):
  • Mandatory for businesses involved in importing or exporting goods.

Basic Obligations of Indian Businesses

• Comply with the Companies Act, 2013 (for companies) or the LLP Act, 2008 (for LLPs).
• Maintain accurate financial records and undergo audits.

Additional Requirements

• Foreign Exchange Management Act (FEMA) Compliance:
  • Necessary for businesses dealing with foreign investments and transactions.
• Other Services:
  • May include project finance, business valuations, due diligence, and advisory services.

Annual Compliance Requirements

• Conduct audits to review financial records and submit reports to tax authorities.
• File an Annual Return electronically with the Registrar of Companies
• Submit forms/returns under FEMA regulations, if applicable.

Simultaneous Business Obligations

• Maintain accounting records and meet legal requirements.
• File quarterly returns under the Income Tax Act.
• Manage payroll services.