Learn how to register a business in India in 2025. Step-by-step guide covering legal structure, compliance, documents, and government registration process.

Register a Company in India: Everything You Need to Know

India in 2025 is one of the most promising countries for global business expansion. With its fast-growing economy, investor-friendly policies, and a thriving ecosystem for start-ups, the country has emerged as a global hotspot for innovation and technology. With a huge English-speaking workforce, deep tech talent available, and ease of doing business on the rise, the country is a natural choice for companies wanting to scale.

Whether-it is an international entrepreneur, multinational company, or remote-first startup looking for global growth-the guide walks you through registering your company in India. We cover registration steps, legal criteria, and types of entities, and offer strategic alternatives to help you build a compliant and scalable presence in the country.

Table of Contents

• Exploring Your Market Entry Options in India
• Business Structures You Can Choose From
• Comparing Business Structure Options
• Step-by-Step Guide to Company Registration in India
• Key Documents Required to Register Your Indian Company
• Post-Incorporation Essentials You Shouldn’t Ignore
• Additional Business Licenses and Registrations You Might Need
• Timeframe to Set Up a Business in India
• What Does It Cost to Incorporate a Company in India?
• Obstacles Global Founders May Face While Setting Up in India
• Incorporating as a Foreign-Owned Company: A Special Path
• Employer of Record: A Simpler Way to Hire in India Without Incorporation
• Why Asanify is the Ideal Partner for Global Companies Entering India
• Summary & Final Takeaways
• FAQs

Exploring Your Market Entry Options in India

You need to consider two main routes when entering the Indian market.:

Incorporating a Local Business Entity

1. Setting up an entity in India gives you full control over operations, branding, and hiring. This path requires you to get your business entity formally registered with the MCA, comply with Indian laws, open local bank accounts, and hire employees in the company name.

This is an ideal setup for companies with a long-term commitment in India or those wishing to build a larger presence inside India.

Hiring Through an Employer of Record (EOR)

An Employer of Record allows for full-time Indian employees to be hired without having to register a local legal entity. The EOR acts as a legal employer on your behalf, dealing with payroll processing, contracts, taxes, and compliance, while you retain control of the employees’ day-to-day work. 

Hiring through an EOR works well for companies wanting to test the waters of the Indian market, hastily hire, or otherwise make the most of a tight budget. It is swift and flexible and compliant with Indian labor laws from the get-go.

Business Structures You Can Choose From

One of the most significant strategic choices you’ll make when setting up a company in India is choosing the proper legal structure. The structure you select influences everything—from flexibility of ownership and exposure to liability to access to funding and compliance requirements.

India provides a range of entity forms that suit various business sizes, objectives, and structures. The following is an in-depth discussion of the most common business structures permitted in India, including which are best suited for foreign investment and scalable ventures.

Sole Proprietorship

A sole proprietorship is the most basic form of ownership of business in India. It is not an independent legal entity; rather, the owner and the business are legally one and the same.

This form is usually taken by small local enterprises or individual freelancers because of the ease of formation, low compliance, and cost. The owner has complete control over the business, all profits go to him or her, and he or she is personally liable for the entire debt and liabilities.

• Best for: Small businesses with low risks operated by Indian residents.
• Foreign Ownership: Not allowed—foreign individuals or firms cannot open a sole proprietorship in India.

Traditional Partnership Firm

A partnership firm is a traditional firm that is established when two or more partners agree to divide ownership, profits, and liabilities of a business. This setup is based on the Indian Partnership Act, 1932 and is subject to a partnership deed.

Although easy to set up and run, one major drawback is unlimited liability—every partner is liable personally for the debts of the firm. Additionally, the firm cannot be treated as a separate legal entity from the partners.

• Best for: Two or more individuals sharing ownership in small businesses.
• Foreign Ownership: Not permitted except if it is converted into a Limited Liability Partnership (LLP).

One-Person Company (OPC)

Introduced in the Companies Act, 2013, an OPC provides one entrepreneur with the advantages of limited liability and corporate form. It provides enhanced credibility over sole proprietorships and protects personal assets from business risks.

OPCs do have some limitations—they cannot raise venture capital, need to become a Private Limited Company once they reach specified financial levels, and foreign ownership is not permitted.

• Best for: Indian resident founders looking for a formal structure with full control.
• Foreign Ownership: Not allowed—only Indian citizens can register OPCs

Limited Liability Partnership (LLP)

An LLP merges the business freedom of a partnership along with the protection of limited liability of a company. It is an independent legal entity, where the partners are liable only up to their agreed contributions. LLPs are governed by the LLP Act, 2008.

This model is preferred by professional service firms, consulting firms, and small tech teams. LLPs have foreign partners with some Reserve Bank of India (RBI) and Foreign Direct Investment (FDI) restrictions.

• Best for: Service-oriented companies and companies looking for flexibility without complete corporate compliance.
• Foreign Ownership: Permitted with advance permission in non-restricted industries. 

Private Limited Company (Pvt Ltd)

A Private Limited Company is the most popular business structure among Indian startups and foreign investors. It is a separate legal entity with limited liability, and it allows foreign direct investment (FDI) through the automatic route in most sectors.

Pvt Ltd businesses can raise venture capital, issue stocks, and expand operations efficiently. But they have to go through more formalities like annual audits, board meetings, and Ministry of Corporate Affairs filings.

• Best for: Startups, SMEs, and international businesses setting up long-term Indian operations.
• Foreign Ownership: Allowed under the automatic FDI route in many industries.

Public Limited Company

A Public Limited Company can raise capital in the form of shares offered to the public via Initial Public Offerings (IPOs). It is suitable for large-scale businesses with big operations and expansion projects. This form is strictly regulated by the Securities and Exchange Board of India (SEBI) and has to abide by comprehensive corporate governance regulations.

Whereas public companies provide more access to capital, they are subject to heavy compliance requirements, financial disclosures, and oversight. 

• Suitable for: Large-scale businesses seeking to list in the public market and raise capital.
• Foreign Ownership: Permitted, subject to sectoral FDI caps and public shareholding requirements.

Comparing Business Structure Options

How to Choose the Right Business Model for Your Operations

Choosing the perfect structure is based on a range of operational and strategic considerations. These are the top criteria to use in your choice:

1. 1. Business Size and Stage

Are you a solo founder building lean or an organisation seeking to establish a local workforce? Micro or sole ventures might be suited to a Sole Proprietorship or OPC. Scaling teams with service propositions might choose an LLP. Startups and overseas expansion ventures typically opt for a Private Limited Company.

1. Nature of Operations

If your venture is in the nature of professional services, joint decision-making, or consulting, LLP or Partnership structures might be appropriate. For product ventures, particularly ones which might need equity funding, a Pvt Ltd company is best.

1. Liability Appetite

Assess your exposure to risk. If you wish to restrict personal liability, eliminate Sole Proprietorship and Traditional Partnerships. LLP, OPC, and Pvt Ltd all provide limited liability protection. 

1. Investment and Fundraising Requirements

Planning to raise VC funds or issue shares? Pvt Ltd companies are eligible for institutional funding and favored by investors. Public Ltd companies enable IPOs and are best for large-scale capital requirements. LLPs have limited fundraising scope and cannot issue equity shares.

1. Long-Term Growth Strategies

Think about your exit strategy, scalability, and future compliance ability. If your aim is to create a future-proof, investor-attaching business that can scale, Private Limited is the way to go. For stable low-compliance businesses with little scaling plans, an LLP might suffice.

Step-by-Step Guide to Company Registration in India

After selecting your business structure, the next thing to do is go through the legal registration process. Here’s how to register a company in India step by step:

Define Your Company Type

Choose whether you’re registering a Private Limited Company, LLP, OPC, or other structure. This will decide the compliance requirements, ownership rules, and documentation required for your application.

Select a Unique Company Name

Select a name that is representative of your brand and follows the Ministry of Corporate Affairs (MCA) naming conventions.

Check for availability and reserve the name using the RUN (Reserve Unique Name) or SPICe+ service on the MCA portal.

Apply for Digital Signature Certificates (DSC)

All directors and authorized signatories need to acquire DSCs to electronically sign documents. This is a compulsory process in filing online incorporation forms

Obtain Director Identification Numbers (DIN)

DINs are distinctive IDs given to all directors. Apply for DIN via the SPICe+ form or independently if you already possess an approved name and company structure.

Reserve Your Company Name with the Registrar

Reserve your company name officially through the MCA’s RUN or SPICe+ Part A service. Name reservation is usually 1–3 business days when all the requirements are fulfilled.

File the Incorporation Application via SPICe+

SPICe+ form is a combined, single-window form that deals with:

• Registration of a company
• Issue of PAN and TAN
• EPFO/ESIC registration
• GST registration (optional)
• Opening of a bank account

Complete Part A (reservation of name) and Part B (company details, director details, registered office address, etc.) to make your application.

Draft and Upload MOA & AOA

Upload Memorandum of Association (MOA) and Articles of Association (AOA), describing your company’s aim, rules of operation, and governance structure.

Pay Filing Fees and Receive Certificate of Incorporation

Once all forms and documents are submitted, pay the government fees online. Upon approval, you’ll receive the Certificate of Incorporation (COI), which legally recognizes your company under Indian law.

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Key Documents Required to Register Your Indian Company

Prior to registering your company in India officially, you will need to make a list of documents that are mandatory. These need to be submitted to the Ministry of Corporate Affairs (MCA) in order to confirm the identity, residence, and purpose of all concerned stakeholders such as directors, shareholders, and the company.

The following is the list of essential documents you’ll require:

Identity Proof of Directors and Shareholders

All suggested directors and shareholders are required to present a valid identification document. For Indian citizens, it can be a PAN card, Aadhaar card, or passport. A passport is required for foreign nationals or non-residents. The documents should be clear, recent, and—if foreign—notarized/apostilled as applicable if in a foreign language, translated into English.

Proof of Residential Address

Address verification for every director and shareholder is necessary. Acceptable documents are bank statements, utility bills, or government-issued address proof, dated within the past 60 days. The document should clearly show the person’s name and full residential address.

Passport-Size Photographs

All directors must submit high-resolution passport-sized digital photographs. These are used in various government forms and internal company records. Ensure that the background is plain and the image quality meets official standards.

Office Address Documentation

Your registered office must be documented at the time of incorporation. You’ll need to provide:

• A rent agreement or property ownership proof
• A recent utility bill (electricity/water/gas)
• A No Objection Certificate (NOC) from the owner of the property, in the event the premises are leased

These documents should have the same address as your incorporation forms and should be dated within a span of two months.

Standard Declarations & Consents

A few MCA-recommended forms will need to be signed and filed along with your registration:

• DIR-2: Consent of Director to serve on the board of the company
• INC-9: Subscribers’ declaration of compliance with the law
• Any further declarations based on your company type and industry

These declarations are obligatory to prove transparency and legal intent.

Post-Incorporation Essentials You Shouldn’t Ignore

After your company has been registered, there are many post-incorporation activities you need to perform to become fully operational and compliant in India. These activities are important for handling taxes, finance, and legal compliance right from the beginning.

Get Your Company’s PAN

The Permanent Account Number (PAN) is a 10-digit unique identification number provided by the Indian Income Tax Department. It is essential for all tax-related activities in India, including opening bank accounts, issuing invoices, and financial reporting. It is usually auto-generated during incorporation when you file the SPICe+ form.

Register for TAN

A Tax Deduction and Collection Account Number (TAN) needs to be obtained if your business is going to deduct taxes at source (TDS)—which is the case when remitting employee salaries, contractors, or suppliers. This helps in maintaining compliance with Indian taxation and enables you to pay TDS to the government.

Open a Corporate Bank Account

You will need to open a separate business bank account in the company’s name to make financial transactions. Banks will mostly need your Certificate of Incorporation, PAN, proof of company address, and authorized signatory documents. This account will be employed for operational expenses, investments, and salaries.

Complete GST Registration

If your business exceeds the annual revenue threshold (presently ₹40 lakhs for most companies), or involves interstate commerce, you need to register for the Goods and Services Tax (GST). GST registration applies to certain business categories like e-commerce or export/import services as well.

File RBI Declarations (if foreign investment is involved)

If your firm has been subject to foreign direct investment (FDI), you have to comply with the guidelines of FEMA (Foreign Exchange Management Act) by making filings such as FC-GPR to the Reserve Bank of India (RBI). These filings record foreign capital inflow and also guarantee compliance.

Non-compliance or delays will attract penalties, so it’s very important to make all the filings within deadlines. 

Additional Business Licenses and Registrations You Might Need

Aside from company registration, some sectors and business activities in India need extra registrations to be compliant:

• Shops & Establishment License

Necessary for all bricks-and-mortar business premises, offices, retail outlets, warehouses, etc. Granted by the local municipal council to oversee employee rights, working conditions, and safety conditions.

• Import Export Code (IEC)

For those engaged in importing or exporting products and services. Provided by the Director General of Foreign Trade (DGFT).

• EPF & ESIC Registration

  In case you have 10 or more employees (depending on the state and industry).

EPF (Employees’ Provident Fund): Guarantees retirement pension.

 ESIC (Employees’ State Insurance Corporation): Covers medical needs of employees.

• Professional Tax Registration: Applied in some states. This tax has to be deducted from salaries of employees and paid to state tax authorities.
• Udyam Registration: Suitable for Micro, Small, and Medium Enterprises (MSMEs). Facilitates access to government incentives, loans, and subsidies.

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Timeframe to Set Up a Business in India

With the advent of online filing systems like SPICe+, India’s company registration process has become much faster and more transparent. Assuming your documents are in order, here’s a realistic timeline for incorporating a company:

Step	Estimated Duration
Apply for DSC and DIN	2–3 business days
Reserve Company Name (via RUN/SPICe+)	1–2 business days
File Incorporation via SPICe+	3–5 business days
Total Time to Register	10–15 business days

Delays may occur if documents are incomplete, attestation for foreign nationals is pending, or MCA queries are raised.

What Does It Cost to Incorporate a Company in India?

In India, incorporation costs are comparatively less, especially when compared to other major global economies. However, their amount varies with respect to the structure chosen for your business, capital requirements, and whether you use professional help or not.

Here’s a typical breakup of incorporation costs in India: 

• Government Fees: These fees are levied on the basis of your Authorized Capital. For capital of under ₹10 lakh, fees would usually be quite nominal in the ₹1,000–₹7,000 range.
• Digital Signature Certificate: Around ₹1,000–₹2,000 per director. 
• Stamp Duty: Varies from state to state and also varies with capital structure. 
• Professional Service Charges: In case of hiring CA/CS, or an incorporation consultancy, charges would depend upon the complexity of work, ranging somewhere between ₹5,000-20,000. 
• Optional Registrations: GST, EPF, IEC, any other registrations, etc., would cost a few thousand more.

Obstacles Global Founders May Face While Setting Up in India

India is a rewarding but complex market, especially for those unfamiliar with the regulatory climate. Here are some hurdles that foreign founders face:

1. Document Attestation and Notarization

Shareholders and directors outside India must present documents authenticated through apostille or consular attestation (e.g., passports, address proofs). This adds to time and administrative effort, especially if the document is issued in a language other than English.

2. Regulatory Confusions in Certain Sectors

Sectors like fintech, education, insurance, and e-commerce operate under evolving regulations and sector-specific restrictions, often requiring detailed legal analysis to determine what activities are permitted under FDI rules.

3. Language and Document-Formatting Concerns

All filings under the MCA must be in English and must follow formats prescribed by the regulator. A wrong translation here or an incorrect name or address discrepancy there can hold up the incorporation process.

4. Ensuring Compliance from a Distance

Without a local office setup and/or Indian staff, a foreign entity can find it hard to be compliant with ROC filings, GST returns, or RBI submissions, making it imperative to engage a good local CA/CS or Employer of Record. 

Incorporating as a Foreign-Owned Company: A Special Path

Foreign entrepreneurs and overseas firms wishing to have a foothold in India find that there are special legal avenues through which full or partial ownership is possible while still adhering to Indian law. Based on your desired level of participation and business objectives, you have three main options to pick from:

Wholly-Owned Subsidiary

This is the most popular pathway for overseas businesses intending to penetrate India in its entirety with complete control over operations. A wholly-owned subsidiary functions as a separate legal entity and enjoys the same operational rights as any Indian company. It allows 100% foreign direct investment (FDI) in most sectors, though some industries are restricted or regulated and require prior government approval.

Liaison Office

A liaison office is a representative office used to communicate between the parent company and Indian stakeholders. It **cannot carry out any commercial or revenue-generating activity**. It’s mostly employed for market research, publicity of the business of the parent company, or export/import-related activity coordination.

Branch Office

A branch office can carry certain commercial operations but remains an extension of the parent company. It may provide services, perform research, or market products, but it’s restricted in scope and requires Reserve Bank of India (RBI) approval.

FDI Caps and Regulatory Approvals

Foreign Direct Investment in India is regulated by sector-specific ceilings called sectoral caps. For instance:

• E-commerce (B2C): Not allowed unless some conditions are fulfilled.
• Telecom: Maximum 100% FDI allowed, but over 49%, approval from the government is required.
• Financial services, defense, insurance, and media: Generally need extra scrutiny and approvals.

In many cases, incorporating as a foreign entity will require filings and approvals from both the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA). These ensure the company complies with the Foreign Exchange Management Act (FEMA) and other sector-specific laws.

It is a complicated route to go through, hence why most foreign founders hire incorporation consultants or Employer of Record (EOR) partners who can help facilitate effortless compliance and setup.

Employer of Record: A Simpler Way to Hire in India Without Incorporation

India entry does not always require a legal entity to provide services for clients. An Employer of Record services provides a quick, compliant way of hiring talent in India without incurring incorporation time and costs. From a legal standpoint, the EOR employs your Indian workforce, while you retain day-to-day control over management.

It is beneficial to test the Indian market, run short projects, or build distributed teams without embarking on full-fledged expansion. It allows global businesses to deploy sales teams or support teams, or simply pilot teams, in just a few days, under the complete guise of Indian employment and tax regulations.

The foreign company is basically freed through the EOR from addressing local employment contracts, statutory employee benefits (i.e. Provident Fund, ESI, gratuity), payroll tax, and so forth. This way they also free their company from compliance risk, be it worker misclassification or labor dispute.

In an environment where international teams value being nimble, keeping risk low, and simplifying HR operations, the EOR becomes the alluring alternative to full-blown incorporation.

Why Asanify is the Ideal Partner for Global Companies Entering India

If you’re considering expanding to India, whether through full incorporation or flexible hiring, Asanify has an end-to-end solution designed specifically for global companies. We know both the strategic and regulatory ins-and-outs of operating in India, allowing you to get past the typical pain points that global founders experience.

For companies willing to establish a legal presence, we lead you through the entire incorporation process: from selecting the appropriate structure and registry with the Ministry of Corporate Affairs to obtaining local tax registrations and post-incorporation compliance. If you’re not yet ready to incorporate, our Employer of Record solution allows you to legally employ Indian talent in just days, without the headaches of payroll, benefits, or compliance documents.

Asanify has supported clients across the United States, Europe, the Middle East, and Southeast Asia. Whether you’re a startup hiring your first remote developer or a multinational opening a regional office, our local legal experts, transparent pricing, and integrated HR tools ensure that your India expansion is fast, compliant, and stress-free.

Summary & Final Takeaways

Growing into India holds great promise—but selecting the appropriate entry route is vital. Many international companies will be deciding between two options: incorporating a legal entity (like a Private Limited Company or LLP) or employing through an Employer of Record (EOR).

If you’re establishing a long-term footprint, raising capital, or seeking complete operational control, organizing a registered company might be the most suitable option. Conversely, if your ambitions involve rapid entry to markets, testing operations, or adding a small team without legal baggage, an EOR enables you to act quickly, without sacrificing compliance.

FAQs

 

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.