Benefits of Using Professional Incorporation Services in India for US Companies

Published on:
January 7, 2025

Table of contents

Talk to Us
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

One Firm,
Global Solutions

We support cross-border business with confidence and clarity.
Book a Call

Starting a business is exciting, but tackling the legal, financial, and operational hurdles can be daunting. Incorporation is a key step, yet it often feels complex and time-consuming. This is where professional business incorporation services step in. They simplify the process, ensuring compliance and setting you up for success from the start. New company registrations in India surged by 29% year-on-year in May 2025, hitting 20,718, an indicator of strong economic growth. This blog will cover the different business structures, the benefits of professional incorporation services, and how they help you tackle the complexities of the process, especially when expanding into India. Let’s jump in. 

Key Takeaways

  • Professional Incorporation Services Simplify Legal Setup: These services ensure your business complies with all regulatory requirements, from entity formation to tax registration.
  • Time-Saving and Error-Free Process: Using a professional service reduces the risk of mistakes and ensures your business is set up correctly, saving valuable time.
  • Tax Registration Support: Incorporation services help obtain essential tax registrations, including PAN, TAN, and GST, ensuring complete tax compliance.
  • Applicable for All Business Sizes: Whether you're launching a small LLC or a large corporation, professional incorporation services offer tailored solutions to meet your specific needs.
  • Quick and Efficient Process: Most professional services can complete your business registration in 7-15 business days, streamlining the incorporation process for faster results.

Business Incorporation: A Brief Introduction

Incorporation means giving your business its own legal identity, separate from its owners. Once incorporated, a company can own property, enter into contracts, and bear legal responsibilities independently. In other words, the company, not the owners, is accountable for debts and obligations. For anyone planning to start a business in India, incorporation is the foundation for compliance, funding opportunities, and long-term growth.

Now that we’ve covered the basics, let’s look at a key document you’ll encounter: the Business Certificate of Incorporation.

What is a Business Certificate of Incorporation?

A Business Certificate of Incorporation is a legal document that says your business has been officially incorporated. It is given by the Registrar of Companies (RoC) or a similar authority. This is similar to the Certificate of Incorporation issued by the Secretary of State, which confirms that your US entity is legally established. In India, the Registrar of Companies (RoC) plays that equivalent role.

This paper has information like:

  • The name of the business
  • Registration number
  • Date of incorporation
  • Type of business structure

This certificate is essential when starting a business in India, as it proves that your company has been legally registered under Indian corporate law.

With that in mind, let’s compare two of the most common business structures: LLC and Corporation.

LLC vs. Incorporation: A Brief Differentiation

Before choosing the right structure for your business, it’s essential to understand how a Limited Liability Company (LLC) differs from a corporation.

Basis

Limited Liability Company (LLC)

Incorporation (Corporation)

Ownership

Owned by individual members or other companies.

Owned by shareholders, managed by a board of directors.

Formation Complexity

Easier and quicker to form with fewer legal formalities.

Requires more paperwork, legal filings, and compliance steps.

Flexibility

Offers operational flexibility, minimal recordkeeping, and fewer annual requirements.

Must follow formal procedures like annual meetings, maintaining records, and filing regular reports.

Taxation

Follows pass-through taxation; profits and losses are reported on members’ personal tax returns.

Subject to double taxation, corporate profits are taxed, and dividends are taxed again at the shareholder level.

Liability Protection

Members enjoy limited liability; personal assets are protected from business debts.

Provides similar limited liability protection for shareholders.

Profit Distribution

Profits can be distributed in any ratio agreed upon by members.

Profits are distributed as dividends, based on shareholding.

Continuity

May dissolve upon a member’s withdrawal unless otherwise stated in the agreement.

Has perpetual existence, independent of ownership changes.

Investor Appeal

Less attractive to large investors due to flexible structure and limited share options.

More suitable for raising capital through the issuance of shares.

Choosing between an LLC and a corporation depends on your tax strategy, growth objectives, and compliance requirements. 

Professional incorporation services can help you assess these factors and select the structure that best supports your business objectives in India or abroad. 

For US companies, this decision hinges on how your US entity interacts with the appropriate Indian entity, typically a Private Limited company. VJM Global supports this decision with guidance rooted in capital plans, tax treatment, foreign shareholding, and long-term growth goals. Get started today

Understanding the differences between LLCs and Corporations is just one piece of the puzzle. There are several factors you should consider before making your decision.

Key Factors to Consider Before Incorporating Your Company

Key Factors to Consider Before Incorporating Your Company

Your company's objectives, sector, and operational style will determine the most suitable type of incorporation for it. These ideas should help you decide the best business setup in India:

  • Size and Scale: Small firms or new companies may find an LLC more suitable because it is flexible and requires fewer rules. Incorporation is usually the best option for larger businesses seeking capital.
  • Industry Norms: Certain frameworks could be more needed or beneficial in some sectors than others. For example, IT entrepreneurs usually choose businesses to attract investors.
  • Tax Implications: Your tax goals and decisions are crucial. Professional business incorporation services can help you select a business structure that fits your budget.
  • Growth Strategies: Incorporations enable you to buy shareholders or build foreign operations. A limited liability company, on the other hand, is established with specific and more manageable goals.

Private limited companies, public limited companies, and limited liability partnerships are the most common types of company formats in India. 

Once you’ve identified your ideal structure, let’s explore why opting for professional incorporation services can be beneficial for your company. 

10 Benefits of Choosing Professional Business Incorporation Services

Starting a business can be complex, but professional business incorporation services provide benefits that simplify the process and safeguard your future. Here’s how they help:

1. Expert Guidance

Professional incorporation services offer expert guidance to ensure your business complies with local laws and regulatory requirements from the outset. For US companies, this includes guidance on how the US–India DTAA applies to cross-border income, helping you avoid double taxation through treaty-based relief and credit mechanisms when revenue flows between your US parent and India entity.

2. Time-Saving Efficiency

The paperwork involved in incorporation can be tedious. Professionals handle filing, documentation, and approvals, allowing you to focus on growing your business rather than getting bogged down in administrative tasks.

3. Error-Free Documentation

Incorporation paperwork must be flawless. Mistakes can lead to costly delays or penalties. Professionals ensure that all documents are accurate and complete, avoiding potential setbacks.

4. Custom Solutions for Your Business

Incorporation services assess your unique business needs and goals, helping you select the right structure, whether it's a Private Limited Company, LLC, or other types, ensuring the best long-term results.

5. Additional Services Under One Roof

Just like in the US, where a business needs an EIN (federal), state registrations, and ongoing IRS compliance, India also has multiple layers of post-incorporation requirements. In India, this includes PAN, TAN, GST registration, RBI reporting for foreign shareholding, and ongoing MCA compliance updates.

Beyond incorporation, VJM Global helps manage post-incorporation compliance responsibilities, offering support across FEMA compliance, RBI registration, GST registration, tax planning, and accounting and audit support

6. Reduced Personal Liability

Incorporation separates your personal assets from your business, offering limited liability protection. Unlike sole proprietorships or partnerships, incorporation ensures your personal assets are shielded from business debts or lawsuits.

7. Access to Capital and Funding

Corporations are more attractive to investors, making it easier to raise capital through stock sales. This is a significant advantage over other business structures, which may have limited access to funding.

8. Tax Advantages and Savings

Corporations can access tax-deductible benefits, including health insurance and retirement plans. Professional services help you address these opportunities, potentially reducing your taxable income and offering significant savings.

9. Long-Term Business Continuity

Incorporated businesses continue regardless of changes in ownership or management. This enduring structure ensures your business has a lasting foundation, even if something happens to its owners or key personnel.

10. Increased Credibility and Trust

In India, foreign-owned Private Limited companies must provide more detailed KYC during account opening, similar to enhanced due diligence reviews that US banks perform for foreign beneficial ownership under FinCEN / AML rules.  

Professional incorporation support ensures your India entry is compliant from day one, which signals reliability to counterparties you’ll work with locally.

With VJM Global, you receive ongoing support to ensure your India entity remains compliant and operational. From monthly accounting, AP/AR assistance, and bookkeeping to regulatory filings and audit support, VJM Global helps streamline your India finance function so your US team doesn’t have to manage every task internally. Book a demo today!

If you're ready to take the leap and start your company, here's a step-by-step guide to registering your business in India.

How to Register a Company in India

How to Register a Company in India

Registering a business in India involves a structured set of processes that ensure your company is legally compliant and set up for success. Here’s a breakdown of the key steps involved:

1. Determine Your Business Structure

The first step in registering a company in India is choosing the right business structure. This decision will define how you operate, manage, and grow your business. Whether you opt for a Private Limited Company, Limited Liability Partnership (LLP), or another structure, it will influence your company’s legal, financial, and operational framework.

2. Get a Digital Signature Certificate (DSC)

To register your company online, a Digital Signature Certificate (DSC) is essential. This ensures the security and authenticity of electronic documents, as per the Information Technology Act of 2000. It’s a crucial step for verifying your company’s digital filings.

3. Obtain a Director Identification Number (DIN)

A Director Identification Number (DIN) is a unique identification number issued by the Ministry of Corporate Affairs (MCA). It is mandatory for anyone planning to be a director in the company.

4. File for Name Approval

The next step is to obtain approval for your company name. You can use the RUN (Reserve Unique Name) or SPICe+ (Simplified Performa for Incorporating Companies Digitally) form to submit your name for approval with the MCA.

5. Apply for PAN, TAN, and GST

After your name is approved, the next step is to obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. If your turnover exceeds a set threshold, you must also register for Goods and Services Tax (GST).

6. Obtain Licenses and Permits

Depending on the nature and location of your business, you may need additional licenses and permits. These may be issued by various government departments or local authorities, ensuring your business complies with all necessary regulations.

While these are the core steps, the exact requirements may vary depending on your company’s type and location. 

Also Read: Documents Needed For Company Registration In India From The US

To make the process even smoother, expert support from VJM Global can help you manage every step of your business setup in India.

Get Expert Help with Your Business Incorporation in India

Starting a business in India can be complex, but VJM Global is here to simplify the process. With our professional incorporation services, you can rely on:

  • End-to-End Incorporation Support: We select the right Indian entity type (most US companies choose a Private Limited) and handle MCA filings, SPICe+, DIN, and digital signatures.
  • Cross-Border Compliance Alignment: Support for aligning US accounting expectations with Indian statutory requirements, advisory on withholding tax treatment, and RBI reporting for foreign shareholding.
  • FEMA, RBI, GST Compliance: We support FEMA and RBI compliance for share subscriptions, capital inflows, and related filings.
  • Entity Design for Scale & Structure: Whether you plan to test market fit, hire Indian talent, or build a full delivery center, we help you choose a structure that supports long-term strategic goals, not just short-term paperwork.
  • Ongoing Accounting & Audit Support: Once incorporated, we can manage your books, reconciliations, AP/AR, and audit prep, giving your US finance team reliable data from day one without increasing domestic headcount.
  • Fast and Efficient Service: Streamline your incorporation process and save time with our hassle-free approach.

Whether you're looking to expand or set up operations in India, VJM Global provides the expertise to make your business launch smooth and compliant.

Conclusion

Starting a business in India is an exciting opportunity, but the process can be complex if you’re unfamiliar with the legal and regulatory domain. From choosing the right structure to tackling tax regulations, every decision plays a critical role in shaping your business’s future.

VJM Global handles everything from company registration and tax registration to ongoing accounting and audit support, so you can focus on growing your business. With our end-to-end services, we ensure that your entry into the Indian market is smooth, swift, and legally sound.

Ready to take your business setup to the next level? Get expert advice today and make your business goals in India a reality.

FAQs

1. What are professional incorporation services?

Professional incorporation services help businesses establish a legal entity, ensure compliance with all relevant regulatory requirements, and provide support in areas such as tax registration and corporate governance.

2. Why should I use a professional incorporation service instead of doing it myself?

Using a professional service ensures that your business is set up correctly from the start, saving you time, reducing the risk of errors, and ensuring compliance with local, state, and federal laws.

3. How do incorporation services help with tax registration?

Incorporation services help you obtain the necessary Permanent Account Number (PAN), Tax Deduction Account Number (TAN), and GST registration, ensuring your business meets all tax compliance requirements.

4. What types of businesses can benefit from professional incorporation services?

Whether you’re starting a small LLC, a large corporation, or a partnership, professional incorporation services can help businesses of all sizes with tailored setup and compliance support. VJM Global offers expert assistance to streamline your India incorporation process.

5. How long does it take to incorporate a business with professional services?

The timeline can vary, but professional incorporation services typically expedite the process, completing most registrations in as little as 7-15 business days, depending on the business structure and required filings.



VJM Global
Explore expert insights, tips, and updates from VJM Global
Know More About The Author

Recent Blogs

Contact Us

We'd love to hear from you! Please fill out the form and we'll get back to you as soon as possible.