Business Laws :
Formalities to establish business in India
Besides incorporation, there are many other formalities in establishing business in India as below :
A company/firm/individual should be :- Registered with concerned registrar office.
- Obtain a Permanent Account Number.
- Obtain a Tax Account Number for income taxes deducted at source
- Registered under Shops and Establishment Act.
- Registered for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located.
- Registered for Professional Tax.
- Registered with Employees' Provident Fund Organization.
- egistered with ESIC (medical insurance).
- Approved by Government before RBI/ or FIPB (for Foreigners and NRI's).
Indian Promoters can form :
- Private Limited Company.
- Public Limited Company
- Limited Liability Partnership
- Unlimited Company
- Partnership
- Sole Proprietorship
Foreign promoters can form :
- Private Limited Company.
- Public Limited Company
- Limited Liability Partnership
- Unlimited Company
- Partnership
- Sole Proprietorship
- Liaison Office/Representative Office
- Project Office
- Branch Office
- Joint Venture Company
For a foreign Investor in India, it is very important to choose a right kind of business or corporate entity which best suits its purposes and takes care of liability issues and tax planning issues.
It is also mandatory for foreign investors or foreign shareholders, both individuals and corporate shareholders, to seek Government Approvals for Investing in India.
- Approval from Foreign Investment Promotion Board (FIPB).
- Approval from Reserve Bank of India, RBI.
- For certain sectors, RBI Approval for foreign investors is available under automatic route.