Company Formation in Gurgaon
Updated on Tuesday 26th March 2019
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Gurgaon is an Indian city located in the state of Haryana; the city is considered the industrial and financial center of the region and businessmen who want to open a company in India should know that one of the most developed business activities carried out here is in the industry of call centers, as Gurgaon is known as the main global business destination for this activity.
There are numerous reasons for investing in Gurgaon, such as its stable economy and complex infrastructure or the rent value of the buildings available for commercial purposes (very low costs). It has a high level of connectivity with other relevant Indian regions, and Gurgaon is also seen as one of the main satellite cities of the country’s capital city, New Delhi.
Investors can find here a wide range of economic sectors in which they can invest, some of the most developed being the following: the real estate market, textiles industry, IT and the Information Technology Enabled Services (ITES) sectors and others. Our team of consultants in company registration in India can provide step-to-step advice on how to open a business in Gurgaon; our specialists can assist with advice on the registration obligations addressed to each economic activity.
How can a foreign business expand in Gurgaon, India?
A foreign corporation can expand on the Indian market through a branch office or a subsidiary. Although the branch office is a dependent structure to its parent company, in India, the registration procedure is comprised of a wide range of steps, and in this case we highly recommend foreign businessmen to request for legal representation from our team of consultants. Some of the main characteristics of the branch are presented below:
- it can be used as a vehicle for investments in a wide range of business sectors, but it may not be used for manufacturing activities;
- the branch office in Gurgaon needs to have the same trading name as the parent company;
- since it represents a sub-division of the foreign company, it can only enter the business activities developed by the company abroad;
- the procedure on how to form a company in India for this structure requires filling several statutory documents of the parent company;
- the branch office may need to apply for a license, in which case it is necessary to obtain an approval from the Reserve Bank of India.
On the other hand, the subsidiary is another option for foreign entities, but this represents a separate legal entity from the parent company abroad and in order to register it, it is necessary to select a legal entity prescribed by the Indian commercial law. Our team of specialists in company registration in India can provide an extensive presentation on the advantages of investing in Gurgaon through a subsidiary.
What are the main business forms in Gurgaon?
The business forms that can be registered in Gurgaon are the same that are prescribed at the level of the national legislation. As we mentioned above, if foreign companies prefer to register a subsidiary here, it is required to select a legal entity. As a general rule, in this case, the most preferred business entity is the private limited company, one of the most common company types registered in this country.
Investors also have the possibility of registering a public limited company, which has similar characteristics as the ones of the private limited company, with the difference that it can publicly trade its shares. There are also differences in the minimum and maximum number of shareholders and directors needed for each structure.
Foreign companies can also enter a joint venture, a type of structure that is set up by at least two different companies, with the purpose of accomplishing a specific business goal. The Indian legislation also offers partnerships or business forms addressed to individual businessmen, such as the One Person Company (OPC) or the sole trader.
What is the difference between a sole trader and an OPC in Gurgaon?
The OPC in Gurgaon, India, is a type of structure that can be registered by a single founder. The advantage of the structure is that it is seen as a separate legal entity than its founder, unlike the sole trader, which is also addressed to natural persons, but which marks no distinction between the owner at the business itself. However, investors must know that the OPC can be registered only by persons who are residents in India.
Businessmen are invited to contact our team of specialists in company registration in India for further information on any of the requirements for starting a business here. Our consultants can advise on how to form a company in India under any of the business forms presented in this article.