Setting Up a Company in India @ Asia Business Set Up


Starting a Business in India
Setting up a business in India is difficult. As evidence of this, the World Bank negatively ranked India the world’s 120th easiest place to do business in 2007 . However, India boasts the world’s 12th largest economy, growing at an average 7% annually for the past 7 years. This boasts excellent investment oppotunity. The following information provides an overview of the procedures for starting a company in India.
1.	The India Companies Act 1956 out lines Business law and incorporation. These both are controlled by the Registrar of Businesses at the Ministry of Corporate Affairs (MCA).
2.	When starting a business in India, one might consider applying for a n SEZ Enterprise. It is an attractive entity for foreign investors because it can i) be 100% foreign owned ii) obtain 100% tax exemption on export income for the first 10 years of manufacturing and iii) because it benefits from a large pool of low cost local labour.
3.	To receive a manufacturing license, a SEZ enterprise is required to i) lease land on which to build a manufacturing facility ii) export at least 50% of its output to international countries (the remainder can be supplied to the Indian domestic market) and iii) submit annual performance reports to the SEZ authorities. Applications to set up an SEZ Enterprise are lodged through the Ministry of Commerce and Industry.
4.	The government fee to register an LLC is US$100. After starting a business in India, with the exception of an SEZ company, most Indian businesses do not require a business license. Sectors closed to foreign investment include the retail trading, atomic energy and gambling industries.
5.	After, it is necessary to submit audited financial statements and annual corporate tax return to the Income Tax Department.
6.	Of the many legal entities permissible in India, the majority of entrepreneurs do so through an LLC.
7.	When starting a business in India, the said business must inject a minimum paid up capital of US$2,250 into the corporate bank account before completion of company incorporation.
8.	It is important to be aware of the tax and accounting procedures. India is a high tax jurisdiction with complex tax laws. Consequently, it is normal for a business to frequently engage the professional services of accountants and tax advisors.
9.	Starting a business in India typically evolves with i) Company name check at the MCA office in the state where the company will maintain its registered office and ii) Filing the Memorandum of Association and Articles of Association with the MCA, along with a) declaration of compliance, duly stamped b) notice of the situation of the registered office of the company c) particulars of the Directors, Manager and Company Secretary and d) the MCA’s company name approval. Approximately three weeks later, the Registrar of Companies at the MCA issues a Certificate of Incorporation.
Contact Us
For more information on setting up a business in India, contact email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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