Business Administration in India
Setting Up a Company
Legal Business Entities
|Types of Companies and Capital (Max/Min)||Number of Partners/Shareholders and Liability||Registration Fees|
| Sole Proprietorship
|| 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.
| Private Limited
|| Minimum number is 2; while as the maximum number is 50.
||INR 4,000 + INR 300 per bracket of INR 10,000 of the authorized capital.|
| Public Limited
|| Minimum number is 7; while as there is no limit on the maximum number of members/shareholders.
||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.|
|| 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.
| Hindu United Family Business (HUF)
|| 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'.
- Legal Weekly Duration
- Maximum 48 hours (9 hours a day).
- Retirement Age
- It varies from 58 to 65 years. Early retirement schemes called Voluntary Retirement Scheme (VRS) also exist in the country.
- Working Contracts
- 1. Permanent (more than 90%)
Cost of Labor
- Minimum Wage
- The national minimum wage has last been revised upwards to INR 66 per day with effect from 1.02.2004. All the State Governments have been requested by the country’s Labor Ministry to ensure fixation/revision of minimum rates of wages not below INR 66 per day.
- Average Wage
- On an average, the industrial wages range from about USD3 per day for unskilled workers, to over USD150 per month for skilled production workers.
- Social contributions
- Social Security Contributions Paid By Employers:
Contributions by Employer
3.67% of monthly payroll, plus 1.1% of monthly payroll for administrative costs.
Survivor (deposit-linked) Insurance
0.5% of monthly payroll, plus 0.01% of monthly payroll for administrative costs.
8.33% of monthly payroll.
An average of 4% of monthly payroll.
Social Security Contributions Paid By Employees:
Contributions by Employee
Contributions by Government
- Social Dialogue and Involvement of Social Partners
- With some exceptions, India has company unions rather than trade unions. These are often affiliated with national labor organizations. Political parties promote various trade unions. The bargaining power of the unions is declining as the government pushes forward its reform agenda.
- Unionization Rate
- Although there are more than 7 million unionized workers, unions represent less than 25% of the workers in the organized sector (primarily in state-owned organizations), and less than 2% percent of the total work force.
- Labor Regulation Bodies
Ministry of Labor and Employment
Any Comments About This Content? Report It to Us.
The $3.3 billion franchise market in India has the potential to grow to $20 billion by 2020, with an impressive growth rate of approximately 30% per year.
U.S. Commercial Service India on 30 Nov 2010 related to Business Administration in India
The guide addresses practical aspects of doing business in India like access to reliable information and who to contact for personal and business assistance while in Bengaluru, India.
Entry India, LLC on 22 Nov 2010 related to Business Administration in India
International Technology Marketing for Indian SME’s: Opportunities, Challenges and Success Factors
Proxy Marketing Solutions Ltd. on 3 Aug 2011 related to Business Administration in India
Action steps with resources and contacts to help you benefit from the booming INDIAN Economy.
Entry India, LLC on 7 Dec 2010 related to Business Administration in India
India is a country that is multicultural and multilingual and it is very important understand these important accept before doing Business in India. Because each state have its own cultural / folk/ dance/ and languages indentify, and people always enjoy their own identity and languages, but at the same time all...
Kumar Sunil, IIBDC on 18 May 2010 related to Business Administration in India
An outline of all aspects of qualifying an opportunity and starting & operating a successful business in India. The emphasis will be to expose a few key information resources and business contacts that SMEs and Start-ups can reliably use to find an optimum opportunity and solve their individual issues and...
Entry India, LLC on 30 Aug 2011 related to Business Administration in India
Graphic Design Agency, Expert in Logo & Packaging, the United StatesGraphic Design Agency, providing creative services for established and entrepreneurial brands, businesses. We...
Cross Cultural Intercultural Training Singapore
Business Expansion, India
U.S. Department of Commerce, India
International Trade Business, India