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GLOBAL INFO

India

COUNTRY:

INDIA

QUESTION:

ANSWER:

1.      What are the main company forms in your country?

Main Form of Companies are:

(a)  One Person Company;

(b)  Private Limited Company; and

(c)   Public Limited Company.

Note: Besides above, we also have the other forms of entity which are used by Indian Residents

(d)  Limited Liability Partnership;

(e)  Limited Partnership; and

(f)   Sole Proprietorship.

 

2.      Which is the most preferred company form by foreign investors?

Private limited by shares.

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

The Companies Amendment Act, 2015 has done away with minimum capital requirements for companies. However, there need to be minimum number of members to form the Companies. 2 members in case of a private company and 7 members in case of a public company.

Capital contribution may be made in cash or in kind (such as transferring to the company any intellectual property, technical know-how,etc)

There is no specific deadline for capital contribution. Shareholders are required to make capital contribution or a portion thereof when called upon to do so by the Company.

 

4.      What are the basic rules of shareholders liability for company debts in this company?

Shareholders are liable only up to the amount remaining unpaid on the shares held by them. If the shares are fully paid, shareholders are not responsible for the debts of the Company.

5.      What are the basic management requirements for this company? (only natural persons or nationals can be managers etc.)

Only natural persons can act as directors of the Company. There is no nationality requirement but the Company must have at least one director who is an Indian resident. Must not have been convicted of any offense related to the promotion or formation of a Company. He should not have been convicted of an offense in relation to moral turpitude.

6.      How long does the registration procedure of this company take?

Fast Track Procedure : 7-9 days

Normal Procedure      : 15-20 days

7.      What are the main costs of formation of this company in local currency?

The fees vary with the amount of nominal share capital a company has. The minimum fee is INR 5000.

8.      What is the average attorney’s fee of the formation of this company in local currency?

Rs 100000 to Rs 150000 (USD 2000-USD2500)

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

The Company is required to file annual returns, Board Resolutions, changes in its registered office, changes in its memorandum and articles of association, etc with the Registrar of Companies.

10.   What are the main auditor requirements?

Every Indian company is required to compulsorily audit their annual accounts.