India Limited Liability Company (private limited company)
- It requires a minimum share capital of USD 1,650 (INR 100,000), two managers and two shareholders. The shareholders can be of any nationality one of the directors must be an Indian resident.
- All designated managers and shareholders are required to file their personal information in public records. Directors are required to obtain identification numbers (DIN and DSC numbers).
- A wide range of government subsidies to encourage reinvestment in the country are available to foreign investors with permanent firms.
India limited liability partnership
- Partnerships formed by non-resident require the appointment of one manager resident in India.
- LLPs in India are required to submit their financial statements to the Indian tax authority on an annual basis. These statements must be audited unless the partnership has income below US$ 500 (INR40 000) or assets below US$ 375 (INR25 000).
- This entity is very flexible and is subject to few compliance rules. Revenue is taxed directly at partner level.
India Free Zone Company (EPZ Company)
- Clients who manufacture and export products can incorporate in an export processing zone. The procedure is the same for a limited liability company, although higher amounts of paid-up capital may be required.
Indian Public Limited Company
- Within India, this entity may enter into a specific contract for a specified period of time. One director must be an Indian resident, while the shareholders can be of any other nationality. As part of the requirements, the company must audit its financial statements on an annual basis.
- A public limited company is not required to be listed on the Indian stock exchange. An IPO can be one of the reasons for the registration of a public limited company.
- This entity operates within the scope defined by the parent company. The branch office has the authority to engage in professional consulting and trading activities, to import and export commodities, to sign and to invoice contracts.
- To establish a branch it is required to obtain approval from the local administration.
- If a branch is established in a special economic zone, it can only carry out business activities within the area. The applicable corporate tax is 43%.
Representative office (liaison office)
- This business entity acts as a communication channel between the parent company and potential customers / suppliers in India.
- A representative office is the ideal establishment for providing after-sales customer support to the local market. Direct revenue-generating activities are not permitted.
- This type of entity can be established for a specific purpose or contract within the country for a specified period of time. Once the contract is concluded, the entity is most likely to be terminated.
- The activities of the project office are taxed in the same way as the activities of the branch office. Remittance of profits outside the country is permitted and subject to exchange controls that prevail.