What are BARE MINIMUM prerequisite for “Setting up a Business in India”?

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1. Naming India Business
Get ready with minimum 2 options of Business Name
Name must be unique and defining the ‘main objective clearly’
Get ready with ‘No Objection’ if intend to use the name of Holding Company or any Trade Mark

2. Business Objective
Clear defined in appx. two Paragraphs (10-15 lines)
General & Multi Objective covering different business areas not allowed

3. Number of Shareholders/Owners
Minimum 2 shareholders for a Private Limited
Can be Foreigners, NRIs, OCIs or a Foreign Company (ies)

4. Foreign Ownership
100% Foreign Direct Investment, allowed in majority business segments
Do check if your business required prior approval from reserve bank of India

5. Initial Share Capital
No minimum requirement
Do plan for initial capital based on initial expenses, until the business reaches at Break Even Point (BEP)

6. Physical presence of Foreign owners
Not required for incorporation purpose
Will be required once in a year to present in AGM

7. Local representative
Not required for incorporation purpose
May be a business need to appoint an appropriate person

8. Resident Director
At least 1 Resident Director is a must
Any person who have stayed in India for 180 days in previous calendar year

9. Registered Office
An address in India (not necessarily a commercial place) required
Option will be there to arrange within 30 days of incorporation

10. Business Plan
Not required from legal side
Must prepare a business plan for minimum 3-5 years span (Break Even Point)
Local Human Resource and Working Capital must be planned well

11. Sales Staff
Core team must be hired based on Business Needs
Assistance of local HR Consultants would be helpful to find out right person

12. Administration Staff
Not required in beginning
Can be hired as a connect between Sales Team and Local Consultants

13. Local Consultant
Must be hired for undertaking all Non-Core/Operational Stuff
Attention to be given toward existing experience of similar nature assignments

14. Annual Compliance
Audit Report, Financial Statement etc need to be signed in paper before filing
All compliances required be done online / Local consultants help will be immense

15. Individual Owners Abroad
Personal appearance required in Annual General Meetings (AGM)
Failure would result in an invalid AGM, resulting into heavy penalties

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