Company law is outlined in the India Companies Act 1956 and company incorporation is controlled by the Registrar of Companies at the Ministry of Corporate Affairs (MCA).

In accordance with the India Companies Act 1956, each company must appoint at least two directors. However, corporate directors are not allowed. At least two shareholders must be appointed be they local and international, corporate and individual shareholders. The company secretary must be resident in India and the company must have a registered office in India.

When starting a company in India, a local, resident company secretary must be appointed. A company in India also requires a local registered office.

When starting a company in India, the said company must inject a minimum paid up capital of US$2,250 into the corporate bank account before completion of company incorporation.

Of the many legal entities permissible in India, the majority of entrepreneurs starting a company in India do so through an LLC. The government fee to register an LLC is US$100.

After starting a company in India, it is necessary to submit audited financial statements and annual corporate tax return to the Income Tax Department.

After starting a company in India, India company details are available for public viewing through the MCA’s online public register. This information includes shareholders and directors details, date of incorporation, amount of share capital and registered office address.

India's complex business regulations and bureaucracy are factors in its low ranking of 134th in the World Bank's Doing Business 2011 Survey, and this discourages many foreign investors starting a company in India.

An India representative office is the least popular legal entity for foreign investors, and is only useful for entrepreneurs wishing to conduct preliminary market surveys and feasibility studies before making a long-term investment commitment to India.