How to Set Up a Business in India

In recent times, India has been facing challenges such as demonetization in 2016, depreciation of currency, rising inflation, current account deficit etc. To overcome these hindrances, Government of India hasframed a new set of rules and regulations such as Make in India Campaign, raising of FDI limits in various sectors, including telecom and other sectors. The new Company Act was also passed recently to curb the loopholes incorporate governance framework in India prior to the amendment, the Insolvency and Bankruptcy Code was also amended for the purpose of securing the various stakeholders of a business and many more other reforms are also sought by the law makers as well as the judiciary to strengthen the corporate governance framework in India.

In today’s competitive world, businesses are required to compete on a much widerplaying field for the purpose of profits which are no longer confinedwithin national borders.After the liberalization in 1991, Indiahas undergone a complete paradigmchange owing to its competitivestand in the world. The Indian economy has been on a steady grow thover the last decadeat rapid pace across newage industries like Telecom sector, Information Technology, IT enabled services, and others. India has witnessed a rapid change on economic platform post 1991 liberalization and thereafter which is one of the main reasons due to which India is now considered to be a growing market for almost all kinds of businesses by national as well as international players.The World Bank’s Doing Business (DB) rankings for 2018, India has made a very significant jump, improving its rank from 130th in 2017 to 100th in 2018.Not only has India improved its position in terms of rankings, which is relative, it has also made improvement in absolute terms, measured by the so-called “distance to frontier” metric.Even though the Doing Business rankings may not be the sole determinant for attracting investment, the improvement is likely to boost investor’s confidence as it reflects the government’s commitment to reforms which basically supports investment in India by both national as well as international investors.

In addition to the above-mentioned macroeconomic indicators,higher disposable incomes,emerging middle-class, low-cost yet really competitive and skilled workforce, all contribute towards India being an appropriate choice for the investors.

Now coming to the procedure required to be complied with in order to set up a business in India, first and foremost the person so setting up business in India needs to decide the nature of business he is going to establish namely, private limited company, public company, company limited by guarantee, shares or liability,LLP, Joint ventures etc. Once this is decided the procedure for registration needs to be complied with.

To make it simple and easy for registering a business in India business in India, Ministry of Corporate Affairs Introduced INC-29 Form, with this form (INC-29) Company registration has merged few processes like Getting Business Name Approval, Director’s Identification Number (DIN) and Incorporation Application into one single process, for more details companies who are interested are advised to consult our experienced professionals for proper and detailed information regarding setting up of business in India.

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