Company Formation Guide in India

Updated on Friday 06th October 2017

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India has one of the largest consumer markets available at a global level, at is has a population of over one billion inhabitants. Foreign investors who want to register a company in India are advised to study the local culture prior to starting their business activities here. However, it is important to know that India offers similar legal entities that are met across the world, such as the private limited company, which is the most popular business form registered in this jurisdiction. Investors can receive assistance on the incorporation procedure from our team of specialists in company formation in India, as well as on the applicable legislation available for foreign entities. 
 

Types of companies in India   
 

As presented above, the private limited company represents the first choice of both local and foreign businessmen. This type of legal entity is governed by the regulations prescribed by the Companies Act 2013 and the Companies Incorporation Rules 2014
 
Other types of business forms available for investors are the following:
 
sole proprietorship company;
partnership company;
one person company;
limited liability partnership
 
The incorporation of the company is performed through the Ministry of Corporate Affairs, which requires investors to apply for a Simplified Proforma for Incorporating a Company electronically (SPICe). Most of the legal entities have to apply for the SPICe registration, but other procedures may be applicable, depending on the specific business form and our team of company formation consultants in India can provide in-depth information on this matter. 
 

Registrar of Companies in India 
 

The legal procedure for starting a company in India is handled by the Registrar of Companies (RoC), which works under the jurisdiction of the Ministry of Corporate Affairs
 
In the situation in which the investors prefer to register a private limited company, the regulations for this business form stipulate that the company should have minimum two shareholders and two directors, with the mention that a natural person can have both the quality of a shareholder and a director. The legal entity can also be represented by another company, but in this case, the entity may act only as a shareholder. 
 
The sole proprietorship, which is the simplest form of performing business activitiesmay be set up by a natural person. However, it is important to know that investors can also set up the one person company, which is basically a sole proprietorship that provides limited liability to the company’s founder
 
Foreign businessmen who want to open a company in India can receive further assistance on the registration requirements from our representatives. Please contact our team of company formation agents in India for professional advice on this subject, depending on the business form chosen for registration

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