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Forms of business presence

  Indian company (Incorporation of a company in India is subject to sectoral caps & requisite approvals) Foreign company (As per Companies Act 2013, only a resident Indian with PAN to be appointed for receiving notices in India for foreign company) Limited Liability Partnership
Business Structure Joint Venture
Wholly Owned Subsidiary

(JV/ Wholly Owned Subsidiary as
  • Private Limited
  • Public Limited Company)

s.t. Companies Act, 2013

Liaison Office
To represent the parent company in India

Branch Office
To undertake activities such as Export, Import, research, consultancy etc.

Project Office
A foreign corporation having secured a contract from an Indian company may set-up a project office provided that the same is funded by inward remittances from abroad

 Subject to provisions of LLP Act, 2008, FDI permitted under automatic route in LLPs operating in sectors/ activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions
Key Highlights
  • Subject to FDI regulations
  • Funding can be via debt/equity/internal accruals
  • No restrictions on repatriation of dividend
 Subject to FEMA regulations Liability of partners restricted to their agreed contribution
Particulars Private Public One Person Company LLP
Min Members 2 7 1 2 partners
Max Members 200 Unlimited 1 No Limit
Min Directors 2 3 1 2 Designated partners
Max Directors 15* 15* 15* NA
Resident Director 1 mandatory 1 mandatory 1 mandatory 1 Designated partner
Transfer of Ownership Can be transferred Can be transferred Can be transferred to nominee in the event of death of owner Can be transferred
Subscription of shares Public subscription not allowed Public subscription not allowed Public subscription not allowed Public subscription not allowed
Issue of prospectus Not mandatory Mandatory in case of public issue Not mandatory Not mandatory
Managerial Remuneration No limit for managerial personnel Shareholder approval is required, If remuneration payable is above limits NA Remuneration is based on LLP agreement
Commencement of Business/Operations Declaration to be filed prior to commencement Declaration to be filed prior to commencement Declaration to be filed prior to commencement Immediately after obtaining certificate of incorporation
Legal status Pvt Co is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act Pvt Co is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act OPC is a separate legal entity registered under Companies Act, 2013. The Directors are liable for defaults made under the act LLP is a separate legal entity registered under LLP Act, 2008. The Designated partners of LLP are liable for contraventions under the act
Governing act/law Companies Act, 2013 Companies Act, 2013 Companies Act, 2013 LLP Act, 2008
Annual Filings & Audit IT return to be filed. Audit mandatory IT return to be filed. Audit mandatory IT return to be filed. Audit mandatory IT return to be filed. Audit mandatory in case turnover exceeds INR 40 lakhs or contribution exceeds INR 25 lakhs

*Company may appoint more than fifteen directors after passing a special resolution, further provided that such class or classes of companies as may be prescribed, shall have at least one woman director (Rule 3 of The Companies (Appointment and Qualification of directors) Rules, 2014)

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