Sole Proprietorship is the easiest way to have a company set up in India. Sole Proprietorship does not need any legal approval, as it is owned and governed by the individual person. The individual governing this business has full liability to the extent of his personal wealth. As the business belongs to an individual, thus, the profit is owned by him fully and he or she is taxed according to the tax bracket prevailing at that time. Sole Proprietorship is taxed if profit exceeds the specified tax limit and provisions under Section 44 (AB) of Indian Income Act are applied to it.

A partnership firm is formed with the agreement between two or more person. In a partnership firm, all the profits and losses are shared equally or as mentioned in the partnership deed of the company. A ‘Partnership Deed’ is an agreement formed between the partners, which describe their duties, responsibilities, share of profit and loss along with other details. In a partnership firm, there can be a minimum of 2 partners but the maximum number of partner for banking firm is up to 10 and for other partnership firms it is 20.

Helpline group can assist and guide you how to business in India through minimum documentation with maximum utilisation of time. Incorporating a partnership firm gets easier faster while working with Helpline Group, we can get all the paperwork done and incorporation of firm completed within a few days.

A General partnership company set up in India comes in existence through the agreement created between two or more partners who have the responsibility to manage and administer the company’s rules and regulations. The partners forming the contract are held responsible jointly and severally to for all the debts and liabilities of the company to the full extent to their personal property.

Every partner working in the firm has the right to make contracts are performed deals on behalf of the firm until and unless specified in partnership deed. Establishing a general partnership company set up in India can be more expensive as compared to a sole proprietorship, as it needs more legal knowledge and has more accountability. Helpline Group experts can give you perfect suggestions about how to start a company in India with minimum legal complexities.

Limited Liability Partnership Act of 2008 was formed with a vision to minimise the liabilities of the owners. Under LLP, there are two types of partners, first, general partners have unlimited liability and have the full right to take participation in management. Second, limited partners have limited rights and liabilities in the company; they are liable to the extent of their contribution to the company.

Under this business structure, death or insolvency of limited liability partners does not affect the existence of the company. Limited Share Partnership Company works as a corporate body with its legal existence in the market. This business structure is more complex in nature and can be understood well only under best guidance. Helpline Group’s experts are here to guide you with the best tips for how to start a company in India by avoiding legal complications.

According to the Indian Company Act of 2013, a holding company is a company that has a relationship with more than one company as a subsidiary company. A company controlling the activities of other company is known as Holding Company, whereas the company getting controlled is known as Subsidiary Company. Control can be maintained by attaining the majority of shares of the company or by controlling the activities of the company.

Holding company set up in India can be done to avail benefits like better control, easy financing, easy ownership transfer, taxation benefits etc. A holding company have the right to manage the composition of Board of Directors in the company, as it holds more than 50% of shares of the subsidiary company.

Public Share Holding Companies in India are also known as Joint Stock Companies. It is usually initiated with a view to make investments for greater returns without much liability. In a public company, shares are divided into equal parts which are traded for public subscription in a local Indian stock exchange. Public Share Holding Company is regulated according to the Indian Companies Act 1956, which was further amended through Companies Act 2013.

A Company is given legal identity in the eyes of law with a separate name; all the contracts are formed in the name of the company. Helpline group can assist in all the documentation work you require to establish this business. There are two major forms of a limited company set up in India-

Public Limited Company: A public limited company is governed and owned by the public. In this business, there can be at least 3 shareholders and there is no limit to a maximum number of shareholders. Shareholders can easily transfer their shares to anyone without any required permission. To start this business venture, you need to have ₹ 500,000 as a minimum paid up capital.

Private Limited Company: A private limited company is governed and owned privately. It can have more than 2 shareholders but not exceeding 50 shareholders with a minimum of 2 Board of Directors. Shareholders cannot transfer their shares to outside members, as shares are restricted to the members of the company only. Minimum paid-up capital required to start this business is ₹ 1 lac. This is the most common and widely used practice in the country.

A joint venture is an agreement created by the association formed between two or more business partners. In this, business is set up through an agreement between the working partners to complete a common task or to work together for a limited time period. Once the purpose of company formation is fulfilled, it gets dissolved without affecting their independent corporate image. Joint Venture can be formed with the purpose to minimise corporate cost and it also decreases risk attached with starting a new business.

However, there is no separate law governing Joint Venture Company set up in India, but Joint ventures are required to comply with general business laws governing Indian business and take prior necessary approvals. Establishing a Joint Venture Company formation in India with an NRI or foreign partner or PIO partner requires prior permission from the Indian government. This approval can also be obtained from the Foreign Investment Promotion Board of India (FIPB) or the Reserve Bank of India (RBI).

A Representative Trade Office is also known as a Liaison Office in India which is established with a purpose to have a better understanding of investment and business environment. It can work as a communication link between the parent company and Indian customers or agencies. It can also participate in Tender- PAC summits or workshops or conferences. A Liaison Office cannot deal in any type of industrial or commercial or trading activities.

It can only handle promotional activities of import /export, promotional or marketing functions, or collection of information. For representative trade office’s commercial registration in India, prior approval of RBI is required to obtain Certificate of Incorporation from the Registrar of Companies. The parent company is held responsible for all the activities conducted by the RTO in India; it also has the responsibility to bear all the expenses of the RTO as it does not have any income for its own.

Commercial agency contract formation is allowed under Indian Company Law. An Agency’s Commercial registration in India needs an appointment of Commercial Agent for selling and marketing the parent company’s products in India. Although the contract is formed according to a foreign company, establishing a commercial agency requires strong compliance with the Indian laws for establishing a market and conducting business. Commercial

Agency law includes all important points that are required for smooth operations of work including the appointment of an agent, duration of the contract, commission or agent’s fee, non-competition clauses, governing laws, dispute resolution, etc. Agents can be paid in the form of commission on sales, or fixed salary or allowance for travelling and marketing incidentals can be paid (as per the contract).

Foreign entities are allowed to open a Branch Office in India. Reserve Bank of India (RBI) has the right to give permission for setting up a branch office of a foreign company in India. A company dealing in activities like trading and manufacturing can set up a branch office in India with the purpose to render consultancy services, marketing or promotional activities, professional services, or import and export of goods, and technical support (after sales support) etc.

A branch office cannot deal in manufacturing activities itself but it can sub-contract for manufacturing the same products as by its parent company. Branch Office commercial registration in India is governed under Registrar of Companies within 30 days of business commencement. Helpline Group can help you set up branch offices in India.