1.

India company formation allows entrepreneurs to be legitimately tax-exempt for the first five years of operation of their company, and 50% tax-exempt for the next five years 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 Healy Consultants' India Company Incorporation page.

India company formation is challenging due to complex bureaucracy and regulations. According to the World Bank's Doing Business 2010 Survey, India ranks poorly at 133rd 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 84th least corrupt country in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

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.

Indian companies are subject to foreign exchange controls. According to the Heritage Foundation's 2010 Index of Economic Freedom India is ranked very poorly for having the world's 124th-freest economy, and scores at 53.4% 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.