Setting up a Business in India

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Sole Proprietorship
 
 
No minimum capital
One
 
 
Unlimited liability.
INR 4,000
Partnership
 
 
No minimum capital
Minimum number is 2, while as the maximum number can be 10 in case of banking business and 20 in all other types of business.
 
 
Liability of the partners is unlimited.
INR 4,000
Private Limited
 
 
Minimum paid up capital of INR 100,000
Minimum number is 2; while as the maximum number is 50.
 
 
Limited liability to the amount contributed.
INR 4,000 + INR 300 per bracket of INR 10,000 of the authorized capital.
Public Limited
 
 
Minimum paid up capital of INR 500,000
Minimum number is 7; while as there is no limit on the maximum number of members/shareholders.
 
 
The liability of a member is limited to the face value of the shares he owns.
INR 4,000 + the following additional fees regulated according to the amount of nominal capital: - Between INR 0.5 million and 5 million: INR 200 per bracket of INR 10,000 of the authorized capital; - Between INR 5 and 10 million: INR 100 per bracket of INR 10,000 of the authorized capital; - For more than INR 10 million: INR 50 per bracket of INR 10,000 of the authorized capital.
Co-operative
 
 
No minimum capital requirement
Minimum number is 10; while as there is no limit on the maximum number of members. However, the members must be residing or working in the same locality.
 
 
The liability of a member is limited to the extent of his capital contribution.
INR 4,000
Hindu United Family Business (HUF)
 
 
No minimum capital
All members of a Hindu undivided family can do business jointly under the control of the head of the family who is known as the 'Karta'. The members of the family are known as 'Co-parceners'.
 
 
The Karta has unlimited liability while the liability of the other members is limited to the value of their individual interests in the joint family.
INR 4,000
 
 

Business Setup Procedures

Administrative Formalities
Depend on the structure created (Branch office, Subsidiary, Joint-Venture partnership, Private or Public Limited company). For more information, visit the site of Ministry of Corporate Affairs.
The Competent Organization
Registrar of Companies (ROC)

Company Law Board

Time Necessary for Registration
1- 2 month, depending on the nature of business and type of company.

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