Business Setup
- Individual Proprietorship firm : A resident individual can form proprietorship firm to Business or carry on profession. Even a NRI can also set up a proprietorship business, subject to applicable FEMA provisions
- Partnership Firm : Two or more person together form a partnership firm to carry on business
- Public Limited Company: A public lmited company can be incorporated under the Companies Act, 1956, suitable for large business as well as closely held business. It has advantage of haveing large base of investor and shares can issued to public. It require at least 3 director and seven members. It can accept public deposit subject to guidlines in this regards. Subject to Sector wise cap on investment,Foreign national or companies are allowed offer shares to invest in such companies
- Private Limited Company : A private limited company again a company incorporated under the Companies Act,1956, suitable for family owned or closed circle, and it does not offer public shares. The number of shareholders for a private limited company is restricted to a maximum 50, whereas the minimum required is 2 can not to public. Subject to Sector wise cap on investment, Foreign national or companies are allowed offer shares to invest in such companies
- Project Office : Subject to specific permission of Reserve Bank of India, all foreign companies are allowed to set up a project office or a site office in India. This facility is allowed as a temporary arrangement and it is exclusively for the project specifically approved and its activities have to be terminated on completion of the project
- Liaison Office : Again, Liaison office can be setup with specific permission of Reserve Bank of India, by all foreign companies. The activities of a liaison office in India are restricted to collecting and dissemination of information, promoting export and import activities and assisting in both technical and financial collaboration etc. but no commercial operation
- Branch Office : Branch offices are allowed for allowed to carry on the commercial activities except manufacturing requires specific permission of the Reserve Bank of India. It can earn profit and repatriate it. Required to to register itself with registrar of companies as foreign companies
- Limited Liability Partnership: This new concept in India, recently introduced incorporated form of partnership. Require atleast two partners