India Company Formation

India company formation is an excellent way for international business people to conduct business in the world’s second-fastest growing major economy. The following will help you determine whether India company formation is the optimum corporate structure to fulfill your international business objectives.
Advantages of India Company Formation
1.	If properly-structured, India company formation is legitimately tax-exempt for the first five years of operation if the company is set up in one of India's Special Economic Zones. For more information on incentives for India company formation, kindly visit our India Company Incorporation page.
2.	India is a popular business outsourcing location due to the wide availability of low cost, English-speaking labour. 100% foreign ownership is permitted with India company formation.
3.	An Indian company accesses double taxation treaties with more than 70 countries including Australia, Canada, China, Japan, New Zealand, Russia, Singapore, South Korea, Thailand, the UK and the US to support India company formation.
4.	Following India company formation, Healy Consultants can open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank.
Disadvantages of India Company Formation
1.	An Indian company pays a corporate tax of 33% on income above Rs1 million (US$25,000). foreign subsidiaries whose parent companies are domiciled in jurisdictions with which India has no double tax treaty pay 20% withholding tax. For more information, visit the India Income Tax Department website.
2.	A minimum of two shareholders and two directors is required with India company formation. The directors and shareholders need not be resident in India. Corporate directors are not permitted. A public register is available, giving details of shareholders and directors.
3.	For India company formation a minimum paid up capital of US$2,250 is required.
4.	Following India company formation, it is necessary to prepare and submit annual audited financial statements and file tax returns with the Indian government and tax authorities.
5.	India company formation is challenging due to bureaucracy and complex regulations. According to the World Bank's Doing Business 2008 Survey, India ranks poorly at 120th for its ease in which to do business in. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. In addition, India is negatively ranked as the world's 72nd least corrupt country in the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
6.	Indian companies are subject to foreign exchange controls. According to the Heritage Foundation's 2008 Index of Economic Freedom, India is ranked very poorly for having the world's 115th-freest economy, and scores at 40% in terms of investment freedom and capital flows. The survey is a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
7.	India is the world's 48th most competitive economy, according to the World Bank's Global Competitiveness Report 2007-2008. According to the World Economic Forum's 2006-2007 Network Readiness Index, India has the world's 44th most developed information communications technology (ICT) infrastructure.
Other Information
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Contact Us
For more information on India company formation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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