The process of company incorporation depends on the jurisdiction where the company is being registered. BNW will discuss with our Clients the international tax and legal implications, along with processes involved in incorporating their company. This will include highlighting the advantages and disadvantages of formation of a company in different corporate jurisdictions, including emerging markets. In summary, our firm assists Clients to identify the optimum corporate jurisdiction for company registration, the optimum corporate structure to legally protect assets and gain access to worldwide markets, while legally minimizing local and international taxation.
The authority responsible for the registration and formation of companies in India is the Registrar of Companies (ROC), an office under the Indian Ministry of Corporate Affairs.
The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act 1956 and Companies Act, 2013.
Starting a business in India, these are the following types of business entities available:
- Public Limited Company: A public limited company or a public company is a type of limited liability company that offers its shares to the general public. A public limited company must have a minimum of fifty (50) shareholders. A public limited company are mostly on the stock exchange.
- Private Limited Company (pvt limited): A private limited company is a type of Limited liability company, whose shares are held by less than fifty (50) persons. These shares are not available to the general public. Most businesses that are privately incorporated are private limited companies.
- Limited Liability Partnership (LLP): it is a well structured business model as the separate legal entity from the partnership entity and business assets are separate from the personal assets of the partners. In case the business incurs losses, the personal assets of partners are not put at risk as the maximum liability of every partner is defined by his share capital in the entity.
- Partnership: This business is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations
- Sole Proprietorship: An entity run by a single person and generally employed in traditional businesses. The founder is completely responsible for the entire business with the business and the owner not separate from each other.
- One Person Company (OPC): A company run by a single person(single owner) who is also the shareholder and the director. One Person Company (OPC) is a newly introduced type of company. OPC was introduced in the Companies Act, 2013 to support entrepreneurs who are capable of starting a venture or registering a firm, this allows them to create a single person economic entity.
- A Section 8 Company: A Section 8 Company of Companies, 2013 is the same as Section 25 company under the old Companies Act, 1956. Section 8 company is one of the most popular forms of Non- Profit Organizations in India.
- Liaison Office / Representative Office: A Liaison Office could be established with the approval of the government of India. The role of Liaison Office is limited to collection of information, promotion of exports/imports and facilitate technical/financial collaborations. Liaison office cannot undertake any commercial activity directly or indirectly.
- Project Office: A foreign company planning to execute specific projects in India can set up a temporary project/site offices in India for carrying out activities only relating to that project. The Government of India has now granted general permission to foreign entities to establish project offices subject to specified conditions.
- Branch Office: The branch office are involved in the following activities: Export/Import of goods, rendering professional or consultancy services, carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company.