Setting up Private Limited Companies in India

A private limited company in India requires a minimum of two directors, and has from two to fifty shareholders with limited liability. Both directors and shareholders can be other legal entities. The minimum paid-up capital for a private company is about US$2,500. Formation takes approximately six to eight weeks. The need for such a company to have either 100 percent foreign ownership or whether it requires an Indian investor is dependent upon the scope of the businesses intended activities.

The intended scope of business activities in India needs to be studied first to assess the suitability of the business as being a 100 percent foreign owned entity.

To read the full version of this article, please purchase the March 2010 issue of India Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact any Dezan Shira & Associates' five national offices at india@dezshira.com for advice or visit www.dezshira.com.