Complete Guide to GST Compliance for Small Businesses in 2025
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Global Business Presence
Private / Public Limited - Wholly Owned Subsidiary - Joint Venture
Import, Export, Research
100% FDI via Automatic Route
Represents Foreign Parent
Specific Project Contract
India is one of the fastest growing major economies in the world. With its large and growing consumer market, skilled workforce, and government initiatives like Make in India and Startup India, the business environment is highly conducive for growth and innovation.
The country offers a strategic location for global trade and a rapidly expanding digital infrastructure. By incorporating your business in India, you gain access to a dynamic market, potential tax benefits, and a supportive ecosystem for startups and established enterprises alike.
| Indian Company | Limited Liability Partnership (LLP) | Foreign Company |
|---|---|---|
| Entrepreneurs can set up either a Private Limited Company or Public Limited Company. | Combining features of a Partnership Firm and a Company, LLP permits 100% FDI investment through the Automatic Route. | Suitable for carrying out Import, Export, Research, and execution of projects in India. |
| Wholly Owned Subsidiary | 100% FDI under Automatic Route | Branch Office |
| Joint Venture | Limited Liability Protection | Liaison / Representative Office |
| Ownership by Foreign Resident | Separate Legal Entity | Project Office |
| Access to Indian Market | Lower Compliance Requirements | Project-Based Operations |
| Features | Private Limited Company | Limited Liability Partnership | One Person Company |
|---|---|---|---|
| Members | Min 2, Max 200 | Min 2, No limit | Min 1, Max 1 |
| Limited Liability | Yes | Yes | Yes |
| Distinct Entity | Yes | Yes | Yes |
| Minimum Capital | Not applicable | Not applicable | Not applicable |
| Board of Directors | Min 2 | Min 2 Designated Partners | Min 1, Max 15 |
| Transferability of Shares | Yes, Restricted | Yes, with consent of partners | Restricted |
| Foreign Ownership | Permitted, subject to FDI policy | Permitted, subject to FDI policy | Permitted, subject to FDI policy |
| Registration Authority | ROC | ROC | ROC |
| Features | Wholly Owned Subsidiary (WOS) | Joint Venture | Branch Office | Liaison / Representative Office | Project Office |
|---|---|---|---|---|---|
| Business Operations | Permitted | Permitted | Permitted (except manufacturing) | Not Permitted (liaison only) | Permitted (project specific) |
| Separate Legal Entity | Yes | Yes | No | No | No |
| Repatriation of Profits | Permitted | Permitted | Permitted | Not Applicable | Permitted |
| Minimum Capital | No minimum requirement | No minimum requirement | NIL | NIL | NIL |
| Tax Rate | Domestic Company Tax Rate | Domestic Company Tax Rate | Foreign Company Tax Rate | Not Taxable | Foreign Company Tax Rate |
Key regulatory aspects for Liaison Office, Branch Office, and Project Office.
| Liaison Office (LO) | Branch Office (BO) | Project Office (PO) |
|---|---|---|
| Representing the parent company, conducting research, etc. | Import/export, consulting, IT services, etc. | Execution of specific projects awarded in India. |
The Registration Process For Companies / For LLP
For defunct companies or those that haven't commenced operations within a year of incorporation.
When members decide to close the company voluntarily by passing a special resolution.
Closure due to inability to pay debts through the NCLT under IBC.
A simplified process for inactive companies meeting certain criteria to remove their name from the register.
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