How to Decide on Which Type of Company To Form In India

While Entring in India

Forming a Company in India is a big and good decision and which type of company to form in India, is a question we keep on getting from our clients. so We thought to give you the answer here so at to save us time on to that. 

Below are the answer to our client as an advice and is not the law in the literal meaning. 

If you are a Non-Indian or Multinational company or Foreign Citizen and want to start your business in India. Then 

Below are the options You do Not Have in India

  • Can not Start a Proprietorship Firm (One Man Individual Firm)

  • Can Not start a Partnership Firm

  • Can Not Start a One Person Company

Hence the only option you have to Start a " Private Limited Company in India ".

Now You can own (Ownership) the New Private Limited Company in India with either of the two options only.

  • Hold Shares and thereby -  Ownership in Your Individual Name.

  • Hold Share in the Name of any company You own outside India.

And at the same time, you must have below things else you will not be able to Start a company in India for sure. and no confusions.

  • Have a representative Indian Person to be the Director of New Company. (Must have Indian PAN Card) (Solution: contact us)

  • Registered Office of the Company in City you decide. (Solution: talk to business centers in that city)

and There is no other Advisable option so do not waste your time on other option please, and Yes, You can argue in Literal or what is written in Textbook or Law on things like liaison office or branch office or some other things. But Please if you are our client or thinking to be our client, discuss one on one else does not put energy on to the same.


Why Do you think there is no other option to start a company in India by a foreign national?

Yes, there are Other options too like liaison office or branch office, but they do not suit you and believe us on to that as per our experience for things like  RBI compliance and limitations on business and so on and you will never opt for them.  

I am an MNC Company out of India and already have a Holding Company outside India, Then whom we give the ownership?

If You already have company outside India, then It advisable to let that company hold Maximum Shares in an Indian company, yes there will be some extra documentation but will for sure benefit in long run.