Company Formation & Corporate Services in India
India rewards founders who get the structure right before day one — not after the first compliance notice. Between FDI routes, MCA filings, GST, and FEMA reporting, the paperwork is real. Our job is to make it a checklist you control, not a surprise you react to.
Private Limited vs LLP
| Private Limited Company | LLP | |
|---|---|---|
| Fundraising | Can issue equity to investors/VCs | Cannot issue equity; less suited to external fundraising |
| Taxation | Standard corporate tax rates, including a concessional rate for certain qualifying new manufacturing companies — time- and condition-bound; current eligibility confirmed before assuming it applies | Taxed as a partnership firm at the applicable firm tax rate — an LLP is not a pass-through/tax-transparent structure in India |
| Compliance load | Higher — statutory audit, board meetings, ROC filings | Lower, but still requires MCA filings and a tax return |
| Best for | Startups planning to raise funding, scale, or eventually list | Professional services, joint ventures, lower-compliance operating structures |
FDI Route Explainer
Foreign investment into an Indian company generally comes in through either the Automatic Route (no prior government approval needed, for most sectors) or the Approval Route (requires prior government approval, for specific sensitive sectors). We confirm which route applies to your sector before you commit to a structure or timeline.
Ownership & Tax Snapshot
Most sectors permit up to 100% foreign ownership under the Automatic Route; a defined list of sectors requires government approval or caps foreign ownership below 100%. A Private Limited Company is taxed at standard corporate tax rates, with a concessional rate available to certain qualifying new manufacturing companies subject to current conditions and timelines we verify before including it in any proposal.
An LLP is taxed as a partnership firm at the applicable firm rate — not treated as tax-transparent — a distinction that matters when comparing the two structures. GST registration is required once turnover thresholds are met, and FEMA reporting (including Form FC-GPR for foreign investment) applies to FDI transactions.
The Setup Process
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Structure decision: Private Limited vs LLP, and FDI route confirmation.
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Digital Signature Certificate (DSC) and Director Identification Number (DIN) for directors.
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Name reservation and incorporation filing with the Ministry of Corporate Affairs (MCA).
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PAN, TAN, and GST registration.
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FEMA/RBI reporting for foreign investment (e.g. Form FC-GPR), where applicable.
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Bank account opening and resident-director/compliance-officer arrangements.
Free Zones & Registrars
| What it is | Relevant for | |
|---|---|---|
| GIFT City IFSC | India’s International Financial Services Centre in Gujarat, regulated by the IFSCA | Fund management, banking, insurance, aircraft leasing, global treasury and fintech |
| Special Economic Zones (SEZs) | Designated export zones under the SEZ Act, 2005, each run by a Development Commissioner | Export-oriented manufacturing, IT and services units |
| MCA / Registrar of Companies | Incorporation, annual filings and changes to directors or shareholding | Every Private Limited Company and LLP |
| Reserve Bank of India (FEMA) | Reporting of foreign investment, such as Form FC-GPR, through an authorised bank | Any company receiving foreign investment |
| GST Network | GST registration and returns | Businesses above the GST threshold or required to register regardless of turnover |
Ongoing Compliance Calendar
Annual
- MCA annual filings (AOC-4, MGT-7)
- Statutory audit
- Income tax return
As applicable
- Monthly/quarterly: GST returns
- TDS filings
Ad hoc
- Event-based: FEMA reporting on any foreign-investment transaction
- ROC filings on changes to directors, shareholding, or registered office
India At A Glance
Main Industries
Why Choose This Market
- Market scale: The world’s most populous country and one of its fastest-growing major economies.
- Open to foreign investment: Most sectors allow up to 100% foreign ownership under the Automatic Route, with no prior government approval.
- Talent and cost base: A deep pool of engineering, technology and professional talent for operations, delivery centres and manufacturing.
Questions We Are Actually Asked
Your question is not here? Put it to an advisor who works on India every week.
Book a ConsultationIs an LLP taxed the same as a Private Limited Company?
No. An LLP is taxed as a partnership firm at the applicable firm tax rate, not as a pass-through entity — a common misconception we correct early in the structuring conversation.
Can I own 100% of my Indian company as a foreign investor?
In most sectors, yes, under the Automatic Route. A defined list of sectors requires prior approval or caps foreign ownership, confirmed for your sector before you commit.
Do I need a resident director in India?
Yes — Indian company law requires at least one director who has stayed in India for a minimum period in the previous calendar year. We help structure this properly.
What is GIFT City, and should I set up there?
GIFT City in Gujarat is home to India’s International Financial Services Centre (IFSC), regulated by the International Financial Services Centres Authority (IFSCA). It suits fund management, banking, insurance, aircraft leasing, global treasury and fintech businesses, and eligible units can access specific tax incentives. For most trading or domestic businesses, a standard company is the better fit — we assess which applies to your activity.
How long does it take to incorporate a company in India?
Usually a few weeks from start to finish, covering digital signatures, director IDs, name approval and the MCA incorporation filing. For foreign directors and shareholders, getting identity and address documents notarised or apostilled is the most common cause of delay, so we start that first.
When does an Indian company need GST registration?
Once turnover passes the applicable GST threshold, which differs for goods and services and for some states. Certain businesses must register regardless of turnover — for example, those making inter-state supplies of goods or selling through e-commerce platforms. We confirm which rule applies before you start trading.
Checked against Ministry of Corporate Affairs, Income Tax Department, and FEMA guidance on LLP taxation as a partnership firm, not a pass-through entity, 31 Aug 2026.
Regulatory and tax rules change. This page is general information about India, not tax or legal advice — we confirm the current position for your activity before you commit to a structure.
Explore Other Countries We Cover
Asia’s credibility jurisdiction — built for founders who need a bank, a board, and a clean filing record.
Explore → UzbekistanCentral Asia’s most populous market, opening fast, with IT Park and free economic zone incentives.
Explore → Hong KongA common-law gateway to Asia with territorial profits tax, once you know where your profits are sourced.
Explore → UAEFree zone or mainland — the fastest-moving hub in the region, if you choose the right structure first.
Explore →Not Sure Which Structure Fits?
Bring us the business you actually plan to run in India, and we will tell you honestly whether this is the right jurisdiction for it — and which structure inside it makes sense.