In general, Indian companies do not require businesses licenses, except for an SEZ Enterprise. Furthermore, foreign companies wishing to invest directly in Indian projects and companies require investment approval from the Foreign Investment Promotion Board (FIPB) of the Ministry of Finance.

One of the key challenges facing international entrepreneurs setting up a business in India is recruiting suitable professional staff. India’s unemployment rate in 2006 was 8% (7.3% in 1999), which restricts the availability of educated, skilled labour available to foreign investors, particularly in the IT and pharmaceuticals sectors.

The majority of entrepreneurs use a corporate services Firm to handle all India company start up formalities. This Firm will legally incorporate your company and act as nominee director and shareholder (if required), local resident company secretary and registered office, assist your Firm fulfill your statutory legal obligations in India and apply for work permits for expatriate staff.

India company set up procedures typically comprises of i) company name check at the Ministry of Corporate Affairs (MCA) office in the state where the company will maintain its registered office ii) Filing the Memorandum of Association and Articles of Association with the MCA, along with a) declaration of compliance, duly stamped b) notice of the situation of the registered office of the company c) particulars of the Directors, Manager and Company Secretary and d) the MCA’s company name approval.

Applications to set up an Indian limited liability company are filed with the MCA, usually through an India-based professional corporate services Firm. This Firm will legally incorporate your company and act as the India company secretary and registered office, assist your Firm fulfill your statutory legal obligations in India and apply for employment visas for foreign staff.