Company Formation-India FAQs
- What is the first step in incorporating a company in India?
Determining the appropriate business structure — private limited company, LLP, or branch/liaison office — is the essential first step, driven by the investor’s sectoral FDI route, operational intent, and whether the activity requires prior government approval.
- How do I choose the right structure for my India business?
A private limited company suits most foreign investors. An LLP is preferred for professional services and joint ventures. Branch or liaison offices suit foreign companies wanting a limited India presence without a separate incorporated entity.
- Can a foreign company own 100% of an Indian entity?
Yes, in most sectors. The automatic route permits 100% FDI without prior government approval in the majority of industries. Sectors including defence, media, and financial services require prior approval under the government route administered by DPIIT. ATB Legal advises on which route applies.
- What is the difference between a branch office and a liaison office?
A liaison office may only conduct representative activities and cannot generate revenue. A branch office may carry on limited RBI-permitted commercial activities. Both require RBI approval under FEMA and carry distinct compliance obligations from a separately incorporated entity.
- How long does incorporation take in India?
A standard private limited company incorporation through the SPICe+ portal typically takes two to four weeks from submission of complete documentation, subject to ROC processing times. LLP incorporation is comparable. Structures requiring RBI approval or sector licences take longer.
- Do I need a physical office to incorporate a company in India?
A registered office address in India is mandatory from the date of incorporation under the Companies Act 2013. Proof of address and a no-objection from the property owner are required. The registered office need not be the principal place of business.
- What documents are required to start the process?
Typically: passport copies and photographs of directors and shareholders, proof of registered office, company name options, and activity description. Corporate shareholders must provide notarised and apostilled constitutional documents translated into English. ATB Legal prepares a tailored checklist.
- Can I apply for work permits and visas under my new Indian company?
Yes. Once incorporated, an Indian company may sponsor Employment Visas for foreign specialists. Business visas are available for directors and investors. ATB Legal advises on the relationship between company incorporation and visa eligibility.
- Are there annual compliance requirements for Indian companies?
Yes. All companies must file annual financial statements (Form AOC-4) and an annual return (Form MGT-7) with the ROC, hold a minimum number of board meetings, and complete a statutory audit. Foreign-invested companies must also file the annual FLA return with the RBI under FEMA.
SPICe+ (Simplified Proforma for Incorporating a Company Electronically) is the MCA’s integrated online incorporation form. A single filing covers company name reservation, incorporation, PAN, TAN, GST registration, and Employee Provident Fund Organization/Employee State Insurance Corporation registration simultaneously.
Following incorporation, a foreign-invested company must notify the RBI within 30 days of receiving FDI, file the FC-GPR form within 60 days of share allotment, register for GST where applicable, and establish statutory books and a statutory auditor. ATB Legal manages all post-incorporation compliance.