BUSINESS SET UP
Based on the above, a Foreign company or Foreign Investor can have following setup and do business in India
In india the following Business are available:
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership (LLP)
- Partnership
- Sole Proprietorship/One Person Company(OPC)
- Wholly owned Subsidiary Company
- Branch Office
- Liaison Office
- Project Office
- Joint Venture Company
Private Limited Copmpany
A Private Limited Company can be incorporated with a minimum paid up Share Capital of Rs.One lac. The minimum number of members should be two and maximum 200. It cannot invite public for subscribing the shares.
Public Limited Company
A Public Limited Company can be incorporated with a minimum paid up Share Capital of Rs.Five lac. The minimum number of members should be Seven and there is no maximum limit for number of members.
Limited Liability Partnership (LLP)
LLP is also a Separate Legal entity and gives benefits of limited liability company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
What is Partnership Firm?
Partnership is just an agreement between two or more persons to carry on business and to share profit/loss .
Sole Proprietorship/OPC
A One man orgainisation who operates the business solely without any other interfearance. The owner has to obtain licence from local authorities