Incorporation and registration of proprietorships, partnership firms, LLPs, companies, trusts and societies, and Indian entities of foreign companies.
Proprietorship
The business and its owner are the same person in law. There is no separate incorporation; the business is identified by registrations such as GST, Udyam, profession tax and shops and establishments, depending on its activity.
Partnership firm
A firm is formed by a partnership deed under the Indian Partnership Act, 1932 and may be registered with the Registrar of Firms. Services include drafting the deed, registration, changes in constitution and dissolution.
Limited liability partnership (LLP)
An LLP is a separate legal entity under the Limited Liability Partnership Act, 2008. The liability of each partner is limited to the agreed contribution. It needs at least two partners and two designated partners, one of whom is resident in India.
Private limited company
- Governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs
- Members: at least two and not more than 200
- Directors: at least two, one of whom has stayed in India for at least 182 days during the financial year
- Incorporation is through the SPICe+ web form, which also covers name reservation, Director Identification Number, PAN and TAN
- Each proposed director and subscriber needs a digital signature certificate
One person company (OPC)
A company with a single member and a nominee, introduced by the Companies Act, 2013. Since 1 April 2021 a non-resident Indian citizen may also form an OPC.
Producer company
Governed by Chapter XXIA of the Companies Act, 2013 since 11 February 2021. It can be formed by ten or more individuals who are producers, by two or more producer institutions, or by a combination of both, for production, procurement, grading, marketing and export of the primary produce of its members.
Section 8 company
A company formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity or protection of the environment. Its profits are applied only to its objects and no dividend is paid to members. It needs a licence under Section 8 of the Companies Act, 2013.
Trusts and societies
| Trust | Society | |
|---|---|---|
| How it is formed | A trust deed by which the author transfers property to trustees for the stated objects | An association of persons formed for a literary, scientific, charitable or similar purpose |
| Law | Created by a registered trust deed; the Indian Trusts Act, 1882 applies to private trusts | Karnataka Societies Registration Act, 1960 |
| Main document | Trust deed | Memorandum of association and rules |
| Minimum persons | Author and at least two trustees | Seven |
| Managed by | Board of trustees | Governing body |
Indian subsidiary of a foreign company
A company is a subsidiary when the holding company controls the composition of its board or more than half of its total voting power. Foreign investment is subject to the Foreign Exchange Management Act, 1999 and the reporting it requires. Documents of foreign nationals are notarised and apostilled or consularised.
Branch office of a foreign company
A branch office is not a separate legal entity. It is set up under the Foreign Exchange Management regulations through an authorised dealer bank and is then registered with the Registrar of Companies. Permitted activities include export and import of goods, professional or consultancy services, research, technical and financial collaboration, acting as buying or selling agent, and information technology services.
Association of persons (AOP)
Two or more persons who join for a common purpose of producing income are assessed as an association of persons under income tax law. Services include PAN, returns of income, audit and tax advice.
Documents usually needed
- PAN and Aadhaar of the proprietor, partners, directors or members; passport for foreign nationals
- Address proof of each person
- Proof of the registered office: utility bill and rent agreement or no-objection letter from the owner
- Digital signature certificates
- Partnership deed, LLP agreement or memorandum and articles, as the case may be