Choice of Organization

Following is a list of organizations through which a foreign company can set up its business in India. The basic requirements for each organization are listed in the below table: 

Type of company Definition Benefits of incorporation Process of incorporation Time required
One Person Company (OPC) A company which has only one person as a member
  • Dual entity (sole proprietorship and limited liability) advantage 
  • Easy to incorporate 
  • Less compliances
  • Easy to manage
  • Tax Savings and flexibility
  • Easy funding
  • Can operate with one director and one member
  • Obtain Digital Signature Certificate (DSC) 
  • Obtain Director Identification Number (DIN) 
  • Select suitable company name 
  • Decide on the capital requirements
  • Decide on its registered office 
  • Documentation & filing 
  • Certificate of Incorporation
6-7 days from the date of application to get the Certificate of Incorporation
Public Company A company which is not a private company and has a minimum paid-up share capital, as may be prescribed
  • Can accept public deposits 
  • Easy transferability of shares 
  • Can also raise funds through Initial Public Offering (IPO)
  • Obtain Digital Signature Certificate (DSC) 
  • Obtain Director Identification Number (DIN) 
  • Select suitable company name 
  • Decide on the capital requirements 
  • Decide on its registered office 
  • Documentation & filing 
  • Certificate of Incorporation
10-15 days from the date of application to get the Certificate of Incorporation
Limited Liability Partnership (LLP) A combination of both partnership and a company
  • Less documentation 
  • No minimum contribution required 
  • Lower incorporation cost 
  • Less compliances 
  • Easy winding up
  • Obtain Digital Signature Certificate (DSC) 
  • Obtain Director Identification Number (DIN) 
  • Select suitable company name 
  • Decide on the contribution 
  • Decide on its registered office 
  • Documentation & filing 
  • Certificate of Incorporation 
  • LLP agreement
7-10 days from the date of application to get the Certificate of Incorporation
Not for Profit Organizations
Trust Created by a party, known as settler or owner, who transfers a title or all of his property to another party i.e., a trustee, for the benefit of a third party i.e., a beneficiary
  • Discharge of charitable and religious purposes of the settlor of the trust 
  • Claim exemption from tax u/s 10 or 11 of the Income Tax Act, 1961 
  • Welfare of the dependent of the settlor of the trust 
  • Proper administration of property
  • Decide name, address, objective, property of the trust 
  • Draft a trust deed on stamp paper of the requisite value 
  • Submit the deed for registration with a local registrar of the state 
  • Once the registrar is satisfied with the documents, he will retain a photocopy for records and return the original registered copy of the trust deed
7-10 days for the creation of a trust from the date of filing of application
Society Established for the promotion of science, literature, or fine arts, etc., under the Indian Societies Registration Act, 1860
  • Creation of military orphan funds 
  • Promotion of science, literature or fine arts 
  • Foundation or maintenance of libraries, public museums and galleries of paintings 
  • Diffusion of political education 
  • Collection of natural history 
  • Mechanical and philosophical inventions, instruments or designs 
  • Charitable purposes
  • Decide name of the society and address of the registered office 
  • Documentation & filing 
  • Creation of memorandum 
  • After scrutiny, the Registrar issues a Certificate of Incorporation.
30-45 days from the date of application to get the Certificate of Incorporation
Section-8 Company A company promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object
  • Registered as a limited company and enjoys all its privileges 
  • Issued a license by the Central Government 
  • Exempted from some provisions of the Income Tax Act, 1961 
  • Prohibited from payment of any dividend to its members
  •  
  • Obtain Digital Signature Certificate (DSC) 
  • Obtain Director Identification Number (DIN) 
  • Select suitable company name 
  • Apply for license to the Central Government 
  • Decide on the capital requirements 
  • Decide on its registered office 
  • Documentation & filing 
  • Certificate of Incorporation
25-30 days from the date of application to get the Certificate of Incorporation