Business Setup FAQs in India: your questions answered

There is no single best structure. A Private Limited Company suits startups seeking investors, an LLP suits professional and service firms, an OPC suits solo founders, and a proprietorship suits small traders. The right choice depends on funding plans, liability, tax and compliance workload. We recommend one after a short consultation.

A Private Limited Company has shareholders and directors, can issue shares to investors and carries more annual compliance. An LLP has partners, no shares and lighter compliance. Both give limited liability. Companies suit venture funding, while LLPs suit professionals and closely held businesses.

Yes. A single person can set up a One Person Company or a proprietorship. An OPC is a separate legal entity with limited liability, and it needs one director and a nominee. A proprietorship is simpler but has no separate legal identity and no liability protection.

A Private Limited Company is usually the preferred structure, because it can issue equity shares, grant ESOPs and fits venture investment norms. An LLP or OPC can be converted later, but converting takes time and cost, so choosing a company at the start is often easier.

A proprietorship is a business owned and run by one person with no separate legal identity. It has no incorporation filing, but it usually needs registrations such as GST, a shop licence or a current account, depending on the activity and turnover. Liability is unlimited.

A partnership firm is a business run by two or more partners under a partnership deed, governed by the Indian Partnership Act, 1932. Registration is optional but advisable. Partners are jointly and severally liable for the firm's debts, so many choose an LLP instead for liability protection.

Yes, in many cases. A proprietorship or partnership can be converted into a company or an LLP, and an OPC or LLP can convert into a Private Limited Company, subject to conditions. The steps, taxes and approvals depend on the case, so plan the conversion with an adviser.

It usually takes about 7 to 10 working days when documents are complete. The actual time depends on name approval, Registrar processing and any query raised. BizSetups prepares and files the forms online and tracks them until the Certificate of Incorporation is issued.

The main steps are obtaining digital signatures, applying for name approval, drafting the MOA and AOA, filing the SPICe+ incorporation form and receiving the Certificate of Incorporation with PAN and TAN. After that comes the bank account and the commencement filing.

A Private Limited Company needs at least two directors and two shareholders, and one person can hold both roles. At least one director must be a resident of India, meaning a stay of 182 days or more in the previous calendar year.

No. The Companies Act does not set a minimum paid-up capital for a Private Limited Company. The authorised capital you choose affects stamp duty and filing fees, so many startups begin with a modest amount and increase it later as the business grows.

Directors and shareholders provide PAN, an identity and address proof such as Aadhaar, passport or voter ID, a photograph, an email and a mobile number. The registered office needs a recent utility bill, and a rent agreement and owner's no-objection certificate if rented.

Usually yes, if you can provide proof of the address and a no-objection certificate from the owner. A recent utility bill is also needed. The address must be in India and must be able to receive official communication from the Registrar.

You receive the Certificate of Incorporation with the Corporate Identity Number, the company PAN and TAN, and the incorporated MOA and AOA. You then open a bank account, deposit the subscription money and complete the commencement of business filing.

A Limited Liability Partnership is a separate legal entity governed by the LLP Act, 2008, where partners have limited liability. It suits professional firms, consultants and small businesses that want flexibility and lighter compliance than a company, and do not plan to raise equity from investors.

An LLP needs at least two partners, and at least two of them must be designated partners who are individuals. At least one designated partner must be resident in India. There is no upper limit on the total number of partners.

It typically takes a couple of weeks, depending on name approval, Registrar processing and the completeness of documents. We prepare the digital signatures, name application, incorporation form and LLP agreement, and keep track of queries until the certificate arrives.

Yes. An LLP must have a written agreement between the partners that sets out their rights, duties, profit sharing and exit terms. It is filed with the Registrar within the prescribed time after incorporation. A well drafted agreement avoids disputes later.

An LLP files a statement of accounts and solvency and an annual return with the Registrar every year, and files its income tax return. Partners' KYC and other event-based forms may also apply. Due dates and fees depend on current rules, so confirm them before filing.

A One Person Company is a company with a single member, who is also usually the director, plus a nominee. It gives a solo founder limited liability and a separate legal identity. Eligibility rules on residency and the number of OPCs a person can hold apply.

Yes. An OPC can be converted into a Private Limited Company, and in some situations conversion becomes necessary, for example when paid-up capital or turnover crosses prescribed limits. The process involves board and member approvals and filings with the Registrar.

A foreign company can set up an Indian subsidiary, an LLP where permitted, or an office such as a branch, liaison or project office. The right route depends on the activity, sector rules and funding. Each route has FEMA and RBI requirements.

An Indian subsidiary is a company incorporated in India in which a foreign parent holds the majority of shares. It is a separate legal entity, usually set up as a Private Limited Company, and must follow Indian company, tax and foreign investment law.

Yes. A foreign national can be a director, but at least one director of the company must be a resident of India. A foreign director needs a Director Identification Number and a digital signature, and foreign documents usually need notarisation or apostille.

In many sectors yes, under the automatic route, but some sectors have caps or need government approval. Whether 100 percent is allowed depends on the activity under the foreign direct investment policy, so we check the sector rules before any funds are brought in.

These are offices of a foreign company in India. A liaison office represents the parent but cannot earn income. A branch can carry out specified commercial activities. A project office is tied to a specific project. Approvals and reporting depend on the type and the RBI conditions.

Foreign investment into an Indian company is reported to the Reserve Bank of India through prescribed filings, such as those after share allotment, along with annual reporting. The forms and timelines depend on the type of investment, so a specialist should review each transaction.

Typically the parent's incorporation documents, a board resolution, identity and address proof of the directors, and details of the Indian directors and registered office. Overseas documents are generally notarised or apostilled, and the exact list depends on the structure chosen.

Registration is mandatory when your turnover crosses the threshold set for your type of supply and state, and for certain categories such as inter-state suppliers of goods in some cases, e-commerce operators and others. Voluntary registration is also possible. Thresholds depend on current law.

GST registration is done online on the GST portal. You submit business, PAN, identity, address and bank details with supporting documents, and the department may ask for clarification. We prepare the application, file it and respond to queries.

It depends on the department's verification. Simple applications may be processed in a few working days, while some need clarification or physical verification and take longer. Accurate documents and a valid business address are the most useful way to avoid delay.

Regular taxpayers file monthly or quarterly returns for outward supplies and tax payment, plus an annual return where applicable. The returns and frequency depend on your turnover and the scheme you have chosen. We set up a return calendar for each client.

It depends on the entity and income. Individuals and proprietors typically use ITR-3 or, under presumptive taxation, ITR-4. Partnerships and LLPs use ITR-5, and companies use ITR-6. The correct form is decided by structure, income sources and tax scheme.

Yes. Every company must file an income tax return each year, even if it has no profit or no business activity. An LLP and a firm must also file. Late or missed filings can attract fees, interest and loss of certain benefits.

TDS is tax deducted at source on specified payments such as salaries, professional fees, rent and contractor payments, when they cross prescribed limits. The payer deducts it, deposits it with the government and files periodic TDS returns. Rates and limits depend on the payment type.

A company files its financial statements and annual return with the Registrar, holds board meetings and an annual general meeting, keeps statutory registers, and updates director KYC. The exact forms depend on the company type, so we prepare a compliance calendar for each client.

AOC-4 is the form used to file a company's financial statements with the Registrar, and MGT-7 is the form for the annual return. Both are filed each year after the annual general meeting, within timelines set by the Companies Act and MCA rules.

Director KYC is a periodic update of a director's personal details on the MCA system, required for every individual who holds a Director Identification Number. Missing it can lead to a late fee and the DIN being marked deactivated until it is filed.

Late filings generally attract additional fees that grow with the delay, and persistent default can lead to penalties for the company and its officers, disqualification of directors or striking off of the company. Amounts depend on the form and delay, so file as early as possible.

A newly incorporated company that has issued share capital must file a declaration that its subscribers have paid for their shares, within the time allowed by the Companies Act, before it begins business or borrows. We prepare and file this form after incorporation.

Director changes are filed with the Registrar through the prescribed form, with consents and board approval, and address changes through the relevant address form with proof. The forms and timelines depend on the change, and we handle the resolutions and filings.

Yes. A company with no business and clear records can apply to be struck off, and an LLP can be wound up in a similar way. Pending filings, dues and liabilities must be settled first, and the process and eligibility depend on the facts of the case.

Yes. Even small businesses need records for GST, income tax, loans and decision making. Companies and LLPs must maintain books of account by law. Clean monthly books also make tax filing and audits faster and cheaper, and help you see cash and margins clearly.

It usually includes recording sales, purchases and expenses, bank and card reconciliation, tracking receivables and payables, and preparing monthly financial statements. Depending on your needs it can also cover GST and TDS data, payroll entries and a monthly review call with an accountant.

A business plan sets out your goals, market, operating model, financial projections and funding needs. Banks, investors and incubators often ask for one, and it helps you test whether the idea makes financial sense before you commit money. Quality matters more than length.

It helps you define policies, offer letters, salary structures and a reliable payroll process, and keep up with statutory requirements. Good HR and payroll processes reduce errors, build employee trust and lower the risk of compliance mistakes as the team grows.

Provident Fund and Employees' State Insurance are social security schemes for employees. Registration is required once the number of employees and wage levels cross the thresholds in the EPF and ESI Acts, which depend on the establishment and state. We check applicability for you.

Employers registered under these schemes deposit contributions and file periodic returns each month on the EPFO and ESIC portals. The forms, due dates and rates are set by the schemes and change from time to time, so we handle them on a calendar.

Professional tax is a state-level tax on salaries and professions, and not every state levies it. Whether it applies, the rates and the filing frequency depend on the state where you operate, so we check the rules for your location.

Zoho Books is cloud accounting software that handles invoicing, expenses, bank reconciliation, inventory basics, GST compliance and financial reports. It suits small and mid-sized businesses that want accurate, real-time books without manual spreadsheets, and it connects with other Zoho apps.

Yes. BizSetups is a Zoho Authorized Partner and works with Zoho certified professionals. We implement, configure and customise Zoho products, migrate your data and train your team so the system matches your processes and Indian compliance needs.

Yes. We map your chart of accounts, opening balances, customers, vendors and items, import them into Zoho Books, and reconcile the figures with your old system. The effort depends on data quality and volume, and we agree the plan with you before we begin.

Zoho Inventory manages stock, purchase and sales orders, multiple warehouses and sales channel integrations. It helps businesses avoid stock-outs and overstock, track items across locations, and it syncs with Zoho Books so that accounting and inventory stay aligned.

Zoho Payroll automates salary calculation, payslips and statutory deductions for Indian employers, and records payroll entries in accounting. Features such as PF, ESI and tax deductions depend on your setup, so we configure them to match your salary structure and applicable rules.

Zoho Billing is subscription and recurring billing software. It manages plans, trials, renewals, invoicing and payment collection for businesses that charge customers repeatedly. It works with Zoho Books so your recurring revenue flows into accounting automatically.

It depends on scope. A simple Zoho Books setup can take a short time, while a migration, integrations or multiple modules take longer. We give a timeline after understanding your data, users and processes, and we include training and go-live support.

For business setup in India, you book a consultation, share your business details and documents, and our experts prepare and file everything. You then receive your certificates and approvals along with a plan for ongoing compliance. The process is online and you get one dedicated expert contact.

Yes, business setup in India can be done fully online with us. BizSetups offers a 100% online process. You share scanned documents digitally, sign forms with digital signatures where needed and receive certificates by email. You do not need to visit any government office or our office for standard registrations.

Pricing depends on the service, the structure and, for incorporation, the state. We keep it transparent by showing professional fees and government charges separately. Request a call back or call +91 92788 13303 for a clear quote for your case.

No. We explain the fees and the government charges before you begin, and tell you if anything extra such as additional filings or a change in scope is needed. GST on professional fees is charged as applicable. Ask for the breakdown on your call.

Call +91 92788 13303, message us on WhatsApp at wa.me/919278813303, email [email protected] or use the call back form on this site. You can also book a free consultation. A real expert will respond, not a script.

Yes. We can take over annual MCA, GST, income tax, TDS, payroll and PF and ESI filings, along with bookkeeping. We maintain a compliance calendar, remind you of upcoming dates and file on time, subject to receiving your data on schedule.