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Optimal Destination for Setting up Business in India

India — The Preferred Global Hub for Business Formation & Expansion
India has firmly established itself as one of the most optimal and preferred destinations for setting up and scaling businesses globally. A fast-growing economy, large domestic market, policy-driven reforms, digital governance, and strong investor protection frameworks have made India a strategic choice for entrepreneurs, startups, and multinational corporations alike.

Government initiatives such as Make in India, Startup India, Digital India, Production Linked Incentive (PLI) Schemes, and Ease of Doing Business reforms have transformed India into a jurisdiction that supports efficient market entry, predictable compliance, and long-term business sustainability.

In 2022, India ranked third globally for Greenfield FDI projects, reaffirming global investor confidence in India’s business ecosystem.

At PGAS & Associates, we provide end-to-end advisory and execution support to help Indian and foreign businesses evaluate India as a destination, select the most suitable structure, and establish operations in a compliant, tax-efficient, and scalable manner.

Why India is an Optimal Business Destination

India’s attractiveness lies not just in market size, but in its ability to offer growth, cost efficiency, regulatory stability, and operational flexibility.

Strategic Advantages

  • One of the world’s fastest-growing major economies
  • Access to a consumer base of over 1.4 billion people
  • Skilled and cost-competitive workforce across sectors
  • Rapidly improving digital and financial infrastructure
  • Strong FDI framework supported by FEMA and RBI regulations
  • Wide network of Double Taxation Avoidance Agreements (DTAAs)
  • Growing startup, private equity, and venture capital ecosystem

How Businesses Can Establish Presence in India

Foreign investors and entrepreneurs can enter the Indian market through multiple structures depending on ownership preference, sector eligibility, control, taxation, and long-term business goals.

Common Entry Models

  • Wholly Owned Subsidiary
  • Joint Venture with Indian Partner
  • Company Owned by Foreign Individual(s)
  • Limited Liability Partnership (LLP)
  • Branch Office / Liaison Office / Project Office
PGAS & Associates assists in evaluating FDI eligibility, approval routes, FEMA compliance, tax implications, and repatriation strategy before finalising the entry structure.

Business Establishment Structures in India

Ownership & Control Models
Particulars Wholly Owned Subsidiary Joint Venture Foreign Individual Ownership
Ownership 100% parent company Shared 100% foreign individual
Control & Management Parent company Governed by JV agreement Foreign individual
Taxation India India India
Liability Limited to company As per JV terms Limited to company
Legal Status Separate legal entity Separate legal entity Separate legal entity

Types of Business Entities in India

Particulars OPC Private Limited Public Limited LLP
Governing Law Companies Act, 2013 Companies Act, 2013 Companies Act, 2013 LLP Act, 2008
Separate Legal Entity Yes Yes Yes Yes
Minimum Members 1 2 7 2
Maximum Members 1 200 No limit No limit
Resident Requirement Mandatory Mandatory Mandatory Mandatory
Public Fund Raising Not allowed Not allowed Allowed Not allowed
Audit Mandatory Mandatory Mandatory Conditional
Income Tax Rate* 17.16%–34.94% 17.16%–34.94% 17.16%–34.94% 31.20%–34.94%

* Including surcharge and cess
# At least one resident director/partner required as per law

One Person Company (OPC)

A Structured Entry for Solo Entrepreneurs
A One Person Company (OPC) is designed for individuals who want full control of their business while enjoying the benefits of a corporate structure. It allows a single founder to operate with limited liability, legal recognition, and enhanced credibility, without the need for partners.

Key Features

  • Limited liability protection
  • Separate legal identity
  • Full ownership and control
  • Better credibility with banks and clients
  • Easy conversion into a Private Limited Company

Eligibility

  • Indian citizen and resident (120+ days stay)
  • One shareholder and one director
  • Nominee appointment mandatory
  • Not permitted for financial or NBFC activities

Private Limited Company

The Most Preferred Structure for Growth
A Private Limited Company is the most widely used structure for startups, subsidiaries, and growth-oriented businesses in India. It offers operational flexibility, limited liability, and strong fundraising potential.

Key Highlights

  • Minimum 2 directors and 2 shareholders
  • Resident director mandatory
  • No minimum capital requirement
  • Restricted share transferability
  • High investor and lender confidence

Key Advantages

  • Preferred by venture capital and private equity investors
  • Easy scalability and share transfers
  • Strong legal recognition
  • Simplified exit and restructuring options

Public Limited Company

Built for Large-Scale Expansion
A Public Limited Company enables businesses to raise capital from the public and institutional investors. It is suitable for enterprises planning large-scale operations, IPOs, or widespread ownership.

Key Highlights

  • Minimum 3 directors
  • No cap on shareholders
  • Shares freely transferable
  • Higher regulatory compliance and credibility
  • Strong capital-raising capability

Limited Liability Partnership (LLP)

Flexibility with Limited Liability

An LLP combines the benefits of a partnership and a company. It is particularly suitable for professional firms, SMEs, and service-based businesses.

Key Characteristics

  • Separate legal entity
  • Limited liability of partners
  • Flexible management structure
  • Lower compliance burden
  • Audit not mandatory below prescribed limits

Sector-Specific Entry & Regulatory Considerations

India’s regulatory landscape varies across sectors. We provide specialised advisory for:

Manufacturing & PLI-linked industries

Technology, SaaS & Digital businesses
Infrastructure & Real Estate
Financial Services & NBFC-linked structures
Professional & Consulting Services

Trading & E-commerce

Each sector requires careful evaluation of FDI caps, approval routes, licensing, and tax incentives.

Our End-to-End Business Setup Advisory

At PGAS & Associates, we support clients across the entire lifecycle of India entry:
  • India market entry & feasibility analysis
  • Entity selection & structuring
  • FEMA, FDI & RBI compliance
  • Company / LLP incorporation
  • PAN, TAN, GST & regulatory registrations
  • Accounting, audit & on going compliance
  • Tax planning, repatriation & exit strategy

Why PGAS & Associates

Strong expertise in tax, FEMA, valuation & cross-border structuring
Experience with foreign investors, startups & multinational groups
Integrated advisory covering legal, financial & regulatory aspects
Practical, risk-focused and execution-driven approach

Contact Us

Planning to set up or expand your business in India?

Let PGAS & Associates help you establish a compliant, tax-efficient, and future-ready presence in India.

📩 Contact us today to discuss your India business setup strategy.