What used to be a struggling country has grown to be one of Asia’s most promising as reflected in the influx of business in India.
Based on a 2019 report by the International Monetary Fund (IMF), the Indian economy was pegged at $2.9 trillion, making it the fifth-largest economy by market exchange rates.
Aside from a steady annual GDP growth rate of 5.8%, the same report hinted India as the region’s third-largest by purchasing power parity of $11 trillion. Such figures make it more enticing for foreign businessmen to do business in that part of Asia.
Indeed, India is one of the world’s fastest-growing economies. As a matter of fact, a sizable number Dun & Bradstreet South Asia Middle East of publicly-listed foreign investment houses have signified intent and are already actually asking how to start private limited company in India.
Potential Market Of India
With a population of 1.35 billion, it is with all certainty that India has the numbers insofar as the potential market is concerned. The IMF even sees India as a place where there is lots of room for new investments, both local and foreign.
With a parliamentary government in place, the Indian government has laid down simplified protocols if only to attract more investors to consider joining the economic circle by starting a private limited company in India.
But how do you actually start a private limited company in India?
Private Limited Company
Web sources define a private limited company as a privately-held business entity held by private stakeholders. As the name suggests, it has a liability arrangement embarking on a limited partnership, where shareholders are liable for a fraction of corporate shares under their individual account. The Ministry of Corporate Affairs directly administers concerns under such a type of business, including the procedure for registration of private limited companies in India.
With a simplified government procedural protocol in place, the company registration process is
- MCA, India’s government agency overseeing concerns on registration of private limited companies in India requires a Director Identification Number (DIN) and Digital Signature for digital sign-up.
- Think of a striking name for the business. It should be something simple but would leave a name recall. Business name is an inherent requirement for the MCA to check and validate if only to avoid duplicates.
- After that, an application form for India Company Incorporation should be secured and accomplished.
- Then subscribe to the Private Limited Company.
- The last thing you would do is to wait for the issuance of a Certificate of Incorporation, a proof of legitimacy as a Private Limited Company in India.
Sounds simple? Not really. You would still need the help of legitimate business advisors with a proven track record of reliability. At 3E Accounting India, we don’t only provide you with the help you need, we deliver results that meet your standards.
For more information, please contact us.