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Establishing a company in India

India is located in South Asia, seventh in size in terms of area, and with a population of 1.2 billion it is the second-most densely populated country in the world. To its south are the great expanses of the Indian Ocean, to its southwest is the Arabian Sea, and to its southeast is the Bay of Bengal. Its northern borders are shared with Pakistan, China, Nepal, Bhutan, Burma, and Bangladesh. India is a great, diverse, and fascinating country in terms of culture, demography, economy, and geography. It has the fastest growth rate currently in the world, and it is developing massive markets in many different fields, from infrastructure and communications to food products and financial services. This growing economy may prove an important consideration when deciding to establish a company in India, providing entrepreneurs significant advantages in certain business activities.  

The capital of India is New Delhi, and its largest city is Mumbai, with a population of 12.5 million. Its official languages are Hindi and English, so establishing and incorporating a company in India does not require overcoming language barriers. The country was under British rule for many years, and gained its independence only in 1947. This is a vast and complex country, but also one that is developing rapidly and attracting huge international investments, with foreign entrepreneurs now being received more efficiently and agreeably than ever before. 

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Three things you did not know about India:

  • India is often considered a place of peace-loving cultures, a perception that is very apt to several central religions of this great country. But India has also been one of the world’s nuclear powers since 1998, and has the third-largest military, ranking ninth in annual security expenditures.
  • India excels in one specific sport field, and is considered a global winner in this nationally beloved and culturally rooted sport – cricket. This game was first introduced by the British during their control of India, but has since been embraced by locals and become its national pastime, drawing in great and enthusiastic crowds.
  • In the past, India was known for its caste system, a social structure that determined which class each person is born to, with no possibility of social mobility. Your caste designation determined a great part of your life path, meaning which professions you may or may not pursue, and forbidding inter-caste marriage. Since the enactment of various caste-related laws in 1947, this issue has been less strictly adhered to.

India’s economy

India is counted among the most fascinating, complex and fast-growing economies in the world today. In 2014 it reported 8% growth, exceeding China. It is globally currently ranked as seventh in economy size, and certain forecasts predict it will climb to third place by the year 2030. Indian economy draws both local and foreign investments on a grand scale and in a long list of areas, with mega-corporations such as IBM and Microsoft having established central development and support centers there. There are also Israeli companies in India, such as Amdocs and Ness, with their own R&D centers. Lately the government has been working to facilitate company registration for foreign entrepreneurs wanting to do business locally.

Its major economic sectors include a huge financial services sector, contributing to roughly a third of GDP, industry and also agriculture. International entrepreneurs considering establishing a company in India will be happy to know that the local financial sector is developed and extremely efficient, there are many international banks active there, and many government incentives for foreign investments.

Mellius has a great deal of experience in providing solutions for clients wishing to establish businesses in India, tailor-made to client needs and type of activity.

Additional information about establishing companies in India:

Type of company
Private Limited Company
Relevant Companies Law
Companies Act 1956
Law requires companies to provide a local office address
Language of original incorporation documents
Finance and Taxation
Corporate tax rate
Standard share capital
100,000 INR
Office Holders
Obligation to appoint company secretary
Required only in companies with outstanding capital stock exceeding 50 million INR
Obligation to appoint local secretary
Not required
Type of entity that may function as company secretary
Obligation to appoint company director
Obligation to appoint local company director
Minimum number of directors
Type of entity that may serve as company director
Obligation to register shareholders
Obligation to register local shareholders
Not required
Minimum number of shareholders
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Registered shares
Accessibility of Information
Company registrar
Information regarding office holders is not accessible to the public
Annual Assembly and Reporting
Obligation to hold annual assembly
Obligation to prepare financial reports
Obligation to submit financial reports