Business setup in India

India is a diverse country with a lot of opportunities. It has been one of the top countries in the world for market expansion and business setup, and a developing economy that offers business potential to companies who are willing to set up an India branch. Their budget-friendly labor makes it perfect for outsourcing work and tapping into India’s huge talent pool.

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You may have heard of the “Make in India” campaign, an effort by the Indian government to attract foreign companies to open in India. The good thing is, it’s not just certain hot-spots anymore – every state in India is now attracting foreign direct investment. What’s more is that any new company creating local employment gets a lot of incentives and tax benefits.       

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Opening your business just got a lot easier

Business setup in India

India has a huge talent pool, being the second-most populous country in the world.

In the year 2018, there were an estimated 1.353 billion inhabitants. In the next decade, India will become number one. It’s a huge market with unlimited possibilities to locate products and a supply of all kinds of workers.

Advantages for setting up a business in India

India has always been a preferred place to find talent in digital skills like IT security, artificial intelligence, and cloud. In the past, Bangalore was the preferred location, the “Silicon Valley of India,” but the Garden City is no longer the main place that IT companies call home. These days Hyderabad, Pune and Mumbai are also popular options for IT services companies and data services.


With 4.14 million IT-BPM professionals, India is a top location for skilled manpower, especially in the IT sector. And long before the digital revolution which resulted from the pandemic, India was upskilling its digital workforce and preparing them for the future, with over 600,000 digitally skilled human resources.

In addition, all Indian states are very highly promoting eco-friendly industries like alternative fuel, solar windmills and recyclable garbage industries. Other sectors which are expanding rapidly are pharmaceutical manufacturing, mass supply chain facilities, and the sourcing of organic and ayurvedic ingredients as a result of COVID.

According to the World Bank, in 2019 India reduced the number of steps to establish a company to just 10. This means a new business can be operating in an average of 16.5 days.

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What do we do for you

With our help, you can get trained on the Indian culture, set up your business and have it running in less than a month.

Our package consists of:


1. Free initial consultation and needs assessment.

2. Targeted cross-cultural business advisory for India.

3. Introduction to a trusted partner for company registration and setup in India.

4. Relationship support throughout the process.

5. Cross-cultural training for you and your staff.


 The B-O-T (Build-Operate-Transfer) model is also available. Our partners will set up your company and manage it for an agreed period of time until you are ready to take it over yourself.


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Let us help you open your company in India through our trusted local partners.

  1. Pre-market entry studies & feasibility studies 
  2. Key commercial considerations 
  3. Advisory on which company structure to set up 
  4. Full setup and registration of the new company 
  5. Government stamps, work license, and other required documents 
  6. Financial operations, such as bank account setup, QuickBooks, and more 
  7. Processing of local tax returns, compliance issues and regulatory norms 
  8. Support for the rental or purchase of an office building 
  9. Human resource needs including recruiting, staffing, and management 
  10. Finding a local strategic partner in India 
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How do I register my company in India?

According to the Chamber of Commerce of the Indian Federation, fulfill the following five steps to open your company:


  1. Apply for your company name. It must be original and not resemble an existing company or trademark already operating in India.
  2. Prepare your company statute and the relevant forms, such as the Memorandum of Association (MOA) & the Articles of Association (AOA).
  3.  Open your bank account.
  4. Deposit of capital. Shareholders must deposit the amount of the share subscription in the Indian bank account.
  5. Present the certificate of commencement. This is done once the capital stock has been transferred.

Please note: For some types of companies, you may need other labor law records and the Goods and Service Tax (GST). The company registration process in India involves significant paperwork and India laws and regulations provide for heavy penalties for not following these regulations. 

Which business is profitable in India?

It is hard to answer which business is best in India because India offers many opportunities. India’s market is large and there are many opportunities for business. They have a strong labour force that can help your business grow if you’re willing to set up an India branch. India also offers skilled workers for outsourcing, and there are many companies in India that you can outsource work to which could help your business. Check out our page on outsourcing for more information.

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What documents do I need for incorporation?

1. Passport

2. Tax identification number or social security

3. Proof of address in the country of origin


What type of company should I form?

1. Private Limited Company: Better for small businesses

2. Limited Liability Company: For large companies. You can upgrade to this model when you grow.

How much money do I need to invest?

The amount needed as a minimum is just $ 1200 foreign direct investment.

Can it be completely foreign-owned?

There must be two directors. Both can be foreigners and two shareholders. It can be also one company and one person.

We can appoint an Indian director for you if you need one.


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