Calcutta, also known as Kolkata, is the capital city of West Bengal; it represents a major business destination as it is also one of the most populous cities in India. Calcutta is a large commercial and educational center of the country, and it is also referred to as the cultural capital of India.
Businessmen who are considering opening a company in India must know that Calcutta is highly developed from a commercial point of view, its largest economic sectors being represented by the real estate industry, internet and technology, tourism or the accommodation sectors, to name a few.
The IT sector is thriving in the city of Calcutta, being a major driver of the local economy; our team of consultants in company formation in India can provide in-depth assistance on how to set up a business here and investors can receive professional advice regardless of the business sector they want to register a local company.
What are the main company types in Calcutta, India?
The commercial legislation in India provides a large category of business forms that can be registered by local and foreign businessmen. However, the most common way to operate a business in India is through the limited liability company, a legal entity that provides a limited level of liability for the company’s founders, in the case in which the company has any debts. Other business forms, which can be presented on an extensive basis by our team of specialists in company registration in India, are presented below:
- public limited company – it needs to be founded by at least seven shareholders and it also requires appointing three directors;
- branch office – this structure is used by foreign companies that want to expand on the Indian market;
- liaison office, also referred to as a representative office – it can be used by a company with the sole purpose of gathering information and facilitate communication with the local partners;
- limited liability partnership – it combines the characteristics of the limited liability company with the ones of a partnerships and it is defined under the Limited Liability Partnership Act 2008;
- limited partnership – it is registered by minimum two associates (partners) who have the same level of liability;
- investors can also set up sole traders, subsidiaries or cooperatives in Calcutta, India.
We also provide a broad variety of employment-related services that help you stay in compliance with the law while also making it simpler and quicker for you to hire and pay employees. Regardless of whether you require solutions for payroll in India for a domestic or international organization, our payroll outsourcing systems and processes are designed to operate with your infrastructure and applications, not with ours.
What are the main procedures for opening a company in Calcutta?
The registration of a business in Calcutta is comprised of numerous steps and this is why we highly recommend investors (especially foreign businessmen) to request legal assistance from our team of consultants in company formation in India. Some of the first procedures set out in this sense refer to obtaining a Director Identification Number and a Digital Signature Certificate for the company’s proposed directors.
Further on, it is necessary to apply for a trading name, by filling specific documents with the Registrar of Companies (RoC). Another basic step refers to drafting the company’s articles of association or other statutory documents (this depends on the chosen business form). Once signed and notarized, these founding documents have to be filed with the RoC. These are the basic registration procedures, but other necessary incorporation steps have to be concluded.
For example, the company’s representatives will have to apply for a Permanent Account Number and a Tax Account Number; the latter can be obtained from the Income Tax Department of India. Further on, the company will have to be registered for the payment of the value added tax (VAT) and this procedure has to be concluded with the Sales Tax Officer in Calcutta.
Some of the final aspects concerning the procedure of company formation in India refer to the registration for employment related taxes. Our team of specialists can provide more information on the required documents that have to be subscribed in this case; investors can also request for legal assistance regarding the employment law applicable in Calcutta.
Today, there are many accounting companies to offer the majority of services. This is also the case of our accountant in Indiayou can rely on in order to deliver the best solutions at lower operations prices on your behalf. If you want to start your own business, we can also assist you with company incorporation services.
What are the main differences between Indian branch offices and subsidiaries?
A branch office in Calcutta, India, does not represent a legal entity in itself, but a sub-division of the parent company abroad. Thus, the parent company is fully responsible for the Indian branch. However, in the case of subsidiary, it is necessary to follow the standard incorporation steps, the first one being deciding on a suitable legal entity.
As a general rule, subsidiaries registered by foreign investors take the form of private limited companies; when opening a subsidiary, it is necessary to request for approval, which is generally offered by the Reserve Bank of India. Businessmen are invited to contact our team of consultants for in-depth information regarding the registration procedure available for a subsidiary; our representatives can assist in registering a subsidiary in Calcutta or in any other Indian region.