What are the types of companies you can open in India ?

Mainly there are two types of companies you can open

  • Private Limited Company
  • Limited Partnership

Recommendation is to open a private limited company

Private Limited Company

  • This type of company needs two directors and if you are an NRI you should be looking for your friend in India to be other Director. There is no limit of having directors and it is up to your friends to pony up the money and contribute
  • Shareholders can then own all the equity in the company and you can assign the shares between the holders depending on their share in the initial equity they contribute.
  • Once your company starts trading or making some money you can easily open up a sister concern face value shop anywhere in the world allowing you to expand
  • Main thing is to get the draft of your business plan and get your accountant to make the memorandum of understanding on what the company wants to trade
  • Ensure everyone who is joining this effort as shareholders or directors are aware of the TDS which they would be subjected to when they take dividends

What would it require to make this work ? Not from you , from your accountant that is ?

  • Applying for the company registration
  • Name of the company ( the most of important step as it needs to be unique )
  • Incorporation of the company
  • Basic KYC ( PAN/Aadhar for your India directors / Passport for the NRI Directors) , all in soft copies via pdfs
  • Receive the DIN ( Directors Identification Number ) this is like a PAN and you can open as many companies as you want once you have this
  • Article of the company which would include the investments at the formation of the company and shareholders and other details on what the company plans to do.
  • Startup Draft on the business plan for the company and how it would make money ( by selling software or plastic bottles etc)
  • Digital signature for the company so there is no need to courier things internationally
  • Apply for the PAN Card for the company
  • Help in getting the Business Bank Account ( Please don’t believe in your friend who has a friend in some bank in India to get this done ,it never happens )

How much will it cost ?

  • Initial investment for the company ?1,00,000
  • Fees for the Accountant for all the above work ?30,000

How much time it would take ?

  • 15-20 days , given you have atleast figured out the name of the company which is unique enough and makes some sense with what you want to sell.
  • This might be something which can abstract for software companies like Aviato :)