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BUSINESS ADVISORY

Setting up a business in India

India climbed another 23 points in the World Bank’s ease of doing business index, becoming the top ranked country in South Asia for the first time and third among the BRICS. Depending on the nature of business to be performed, there are various entry options for a foreign investor to enter India, such as a Private Limited Company, Limited Company, Limited Liability Company, Branch Office, liaison office, Secton-8 company, Trust, NGO, etc. Also, Indian law allows foreign citizens to become full-time directors or shareholders in the entity; however at least one of the Directors/Partners should be a resident of India. RBA has the expertise local knowledge who can help you find the best suitable options and to navigate these complexities.

The process of selecting the form of business organization plays a very important role in setting up of business, as various factors like flexibility, business requirement, taxation etc are required to be considered and a wrong decision may hamper your future business plan. As its long term plan which need to be rationalized based on the pros and cons on the type of organization. At RBA, we provide option to choose the right kind of business form and therefore

we can help you in understanding the technicalities and positives that lies behind each form, to enable you to take a right and informed business setup decision. We can help you in setting the following form of business such as

Private Limited Company

Private Limited Company is the most prevalent and popular type of corporate legal entity for business in India. A private limited company can be registered with, a minimum of two shareholders and two directors. An Individual can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters. Private Limited Company Features:

  • It is flexible and has limited liability of Shareholders
  • Separate Legal Entity
  • Perpetual Existence
  • Greater capital contribution and greater stability
  • Possibility to grow big and expand
  • Owning Property

Limited Company

Limited Company is second most prevalent and popular type of corporate legal entity for business in India. A limited company can be registered with, a minimum of seven shareholders and three directors. An Individual can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment. Limited Company Features:

  • Limited liability to Owners and Management
  • Easy Transfer of ownership
  • Separate Legal Entity
  • Perpetual Existence
  • Stringent Regulatory Requirements
  • Greater Borrowing Capacity
  • Greater capital contribution and greater stability

One Person Company

One Person Company is the concept introduced for entrepreneurs who are capable of starting a venture by allowing them to create a single person entity for business in India. One Person Company Features:

  • Only One Member is required to create OPC
  • Separate Legal Entity
  • Limited Liability
  • Required to Nominate a nominee Director in MOA & AOA

Limited Liability Partnership

The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, Liability of partners is limited, similar to that of the shareholders of a private limited company. However, unlike private limited company shareholder, the partners of a LLP have the right to manage the business directly. Limited Liability Partnership Features:

  • Limited liability to Owners
  • Easy Transfer of ownership
  • Separate Legal Entity
  • Owning Property.

Section-8 Company/ NGO:

Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members. Section 8 company Features:

  • Charitable Objectives.
  • Minimum Share Capital
  • Limited Liability.
  • Government privileges
  • Perpetual Existence

Charitable Trust:

A charitable trust, as the name suggests is the one where the sole purpose of its incorporation is to uplift people from poverty, to empower women, to eradicate illiteracy, to promote public health and comfort, to further religious practices, and other charitable purposes. Charitable trust Features:

  • Tax Exemptions benefits
  • Perpetual Existence

Market Assessment:

India is a land of dynamic opportunities, as well as challenges. While one can and should not ignore the market potential India offers for all kinds of businesses, it is advisable to understand the market conditions well, in advance.

Our experience, together with the sophisticated analytical skills brought by our team members, enables us to provide effective, rigorous, and practical market analyses and assessments. Our commitment to detailed research and market analytics provide you with data-supported analysis that support and inform your decision-making processes.

Our market assessment services are broad and deep, including business unit growth plans, demand forecasting, regional market assessments, portfolio and infrastructure analysis, and risk management policies and analysis. RBA has supported numerous clients throughout multiple Indian markets and regulatory jurisdictions.

 
     
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