US Business Setup

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Business setup services by VJM Global

If you’re a USA-based company looking to establish your business in India, VJM Global is your go-to partner providing comprehensive assistance in establishing your business in India, right from entry strategy into the dynamic Indian market to successfully operating your business.

As a renowned business setup enterprise in India, we understand the intricacies of the Indian market, legal system, and corporate structure and have a specialized team of business setup professionals to guide you through the smooth establishment of your US business.

Company Stats:

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Everything You Need to Run Your US Company Like a Local

1

Advisory & Support Services (Pre-Incorporation)

1. ­­­­Type of entity & business model recommendation
2. Foreign Direct Investment (FDI) policy
3. Identify available incentives – Federal, State, Local
4. Location analysis based on taxation, incentives, and other
5. Transfer pricing and Double Tax Avoidance Agreement
6. Approvals & Sanctions
7. Capital structuring recommendation
8. Pre-incorporation advisory
9. Identify the right company structure in India
10. Identifying business location in India
11. Nominee director services

2

Step by step Processing and Support Services (During Incorporation)

1. Obtaining digital signatures for all directors
2. Allotment of Director Identification Number for all directors
3. Get the desired name of the company registered with RoC. However, approval of the name shall be subject to the fact that the name should not resemble any existing company and the name must not contain any word prohibited by the Companies Act, 2013.
4. Preparation of Memorandum of Association (MoA), Article of Association, and other documents required for incorporation.
5. Filing of registration-related documents with RoC.
6. Handling of all the issues raised by ROC, if any
7. Obtain a certificate of incorporation
8. Assistance in opening of bank account in India
9. Filing declaration of commencement of business with RoC

3

Advisory and Support Services (Post-Incorporation)

1. Accounting & Bookkeeping
2. Payroll management, advisory, and compliance with employee-related laws in India
3. Tax advisory and compliances
4. Secretarial compliance as company secretary
5. Annual audits and tax return filing in India
6. Cross-border transaction advisory
7. Transfer pricing advisory
8. External commercial borrowings and capital infusion advisory during the entire presence of the company in India
9. Budgeting and forecasting of entity
10. Management reporting

Advisory & Support Services (Pre-Incorporation)

1. ­­­­Type of entity & business model recommendation
2. Foreign Direct Investment (FDI) policy
3. Identify available incentives – Federal, State, Local
4. Location analysis based on taxation, incentives, and other
5. Transfer pricing and Double Tax Avoidance Agreement
6. Approvals & Sanctions
7. Capital structuring recommendation
8. Pre-incorporation advisory
9. Identify the right company structure in India
10. Identifying business location in India
11. Nominee director services

Step by step Processing and Support Services (During Incorporation)

1. Obtaining digital signatures for all directors
2. Allotment of Director Identification Number for all directors
3. Get the desired name of the company registered with RoC. However, approval of the name shall be subject to the fact that the name should not resemble any existing company and the name must not contain any word prohibited by the Companies Act, 2013.
4. Preparation of Memorandum of Association (MoA), Article of Association, and other documents required for incorporation.
5. Filing of registration-related documents with RoC.
6. Handling of all the issues raised by ROC, if any
7. Obtain a certificate of incorporation
8. Assistance in opening of bank account in India
9. Filing declaration of commencement of business with RoC

Advisory and Support Services (Post-Incorporation)

1. Accounting & Bookkeeping
2. Payroll management, advisory, and compliance with employee-related laws in India
3. Tax advisory and compliances
4. Secretarial compliance as company secretary
5. Annual audits and tax return filing in India
6. Cross-border transaction advisory
7. Transfer pricing advisory
8. External commercial borrowings and capital infusion advisory during the entire presence of the company in India
9. Budgeting and forecasting of entity
10. Management reporting

Understand the Entry Route for American Companies in India

Title Branch Office Wholly Owned Subsidiary
Reports to
Head Office
Head Office
Liabilities
In case of Branch office, the extent of liability is unlimited. In case where the branch office incurs any loss, that needs to be paid after liquidation of assets of the foreign assets of the foreign/ parent company i.e the head office. Here to fulfill the liabilities of branch office, the assets of the parent company can be utilized.
In the case of a subsidiary company, the liability of the parent company would be limited to the extent of its shareholding in the subsidiary company as the subsidiary is a distinct legal entity apart from its shareholders.
Business Activity
Branch conducts same business as parent organization.
Subsidiary may or may not conduct the same business as a parent organization i.e. It can conduct any business activities subject to MOA and AOA.
Source of Income
For the Branch office in India, the only source of Income will be the funds received from the Head office through normal banking channels for which, a Branch office has to open an account in any AD Category-I Bank in India or the branch office may generate income through the process of its business operations.
While in case of an Indian subsidiary, The source income would be all the income arising out of its business activities.
Direct Taxation
The tax slabs in India for the Branch office as it is considered as foreign company, are divided in to 3 slabs

  • When income is below 1 crore – the tax rate would be 41.60%

  • When income is below 10 crore – the tax rate would be 42.43%

  • When Income is above 10 crores – the tax rate would be 43.68%
In case of Indian Subsidiary the tax slabs will be as follows:

  • When gross turnover is up to 400 crores- the tax rate would be 25%

  • When Gross turnover exceeds 400 Crores- the tax rate would be 30%
Management
In the case of the Branch office, all the managerial tasks would be handled by the authorized representative of the head office, who is resident in India.
The Indian subsidiary requires the minimum two directors from which at least one director shall be an Indian National.
Registration Requirements
To open a branch office in India,

  • The Parent Company should have a profit making track record during the immediately preceding five financial years in the home country.

  • The net worth of the branch office must not be less than the US $100,000
To open an Indian Subsidiary in India there is no requirement of Profitable track record or Networth of Parent company. The minimum requirements to setup WOS

  • Minimum No. of Directors: Minimum 2 directors and out of which one has to be Indian director.

  • Minimum No. of shareholders: Minimum 2 shareholders. Both the shareholders can be foreign national.

  • Registered Office: The Registered office shall be situated within India in any State.

  • Name: The name of the Subsidiary Company may or may not be same as of its Holding Company.
Export of Services under GST
Sales from Branch office to Parent company, would not be considered as export of services and would have multiple implications under GST.
Sales from Branch office to Parent company, would be considered as export of services and no GST would be charged on same.
Title Branch Office Wholly Owned Subsidiary
Reports to
Head Office
Head Office
Liabilities
In case of Branch office, the extent of liability is unlimited. In case where the branch office incurs any loss, that needs to be paid after liquidation of assets of the foreign assets of the foreign/ parent company i.e the head office. Here to fulfill the liabilities of branch office, the assets of the parent company can be utilized.
In the case of a subsidiary company, the liability of the parent company would be limited to the extent of its shareholding in the subsidiary company as the subsidiary is a distinct legal entity apart from its shareholders.
Business Activity
Branch conducts same business as parent organization.
Subsidiary may or may not conduct the same business as a parent organization i.e. It can conduct any business activities subject to MOA and AOA.
Source of Income
For the Branch office in India, the only source of Income will be the funds received from the Head office through normal banking channels for which, a Branch office has to open an account in any AD Category-I Bank in India or the branch office may generate income through the process of its business operations.
While in case of an Indian subsidiary, The source income would be all the income arising out of its business activities.
Direct Taxation
The tax slabs in India for the Branch office as it is considered as foreign company, are divided in to 3 slabs

⦿ When income is below 1 crore – the tax rate would be 41.60%

⦿ When income is below 10 crore – the tax rate would be 42.43%

⦿ When Income is above 10 crores – the tax rate would be 43.68%
In case of Indian Subsidiary the tax slabs will be as follows:

⦿ When gross turnover is up to 400 crores- the tax rate would be 25%

⦿ When Gross turnover exceeds 400 Crores- the tax rate would be 30%
Management
In the case of the Branch office, all the managerial tasks would be handled by the authorized representative of the head office, who is resident in India.
The Indian subsidiary requires the minimum two directors from which at least one director shall be an Indian National.
Registration Requirements
To open a branch office in India,

⦿ The Parent Company should have a profit making track record during the immediately preceding five financial years in the home country.

⦿ The net worth of the branch office must not be less than the US $100,000
To open an Indian Subsidiary in India there is no requirement of Profitable track record or Networth of Parent company. The minimum requirements to setup WOS

⦿ Minimum No. of Directors: Minimum 2 directors and out of which one has to be Indian director.

⦿ Minimum No. of shareholders: Minimum 2 shareholders. Both the shareholders can be foreign national.

⦿ Registered Office: The Registered office shall be situated within India in any State.

⦿ Name: The name of the Subsidiary Company may or may not be same as of its Holding Company.
Export of Services under GST
Sales from Branch office to Parent company, would not be considered as export of services and would have multiple implications under GST.
Sales from Branch office to Parent company, would be considered as export of services and no GST would be charged on same.
Download Business Guide

Setting up Business Operations In India For American Companies

1. As an Indian company: A foreign company/ investor that wishes to commence its operations in India can begin operations either via (i) Joint Ventures or (ii) a Wholly Owned Subsidiary (subject to 100% FDI permission for the activities being carried out)

2. As a foreign company: India also provides more cost-effective options to a foreign company wanting to test the waters before plunging into full-fledged operations; a private limited company, a branch office or a project office as a part of your UK-based company.

Comparison Between a Branch Office & Private Limited Company

Group 1135 1

Branch Office

Registering a branch office or a liaison office will require the approval of the RBI and the Indian government. The registration of a branch office for a US company can take more time and effort as compared to the registration of a private limited company. Moreover, US nationals can establish a branch office in the country only if they can prove a profitable five-year track record and a net worth of minimum 100,000 US dollars. Opening a branch office in India can be an easy procedure when you partner with VJM Global.

Group 1136

Private Company

Registering a private limited company can be the simplest and the quickest entry strategy for all foreign companies and investors. Foreign direct investment or 100% foreign direct investment into a private limited enterprise is the easiest route, devoid of any central government regulations. An American company can form a private limited company as a joint venture partnership or as a wholly owned subsidiary. This is the most cost-effective India entry plan for foreign companies into India. At team VJM Global, we can plan your India-entry to take up the fastest and easiest pathway into the Indian business market.

Benefits of Registering your
company in India

  • Registration creates a separate legal entity, protecting personal assets from company liabilities.
  • Liability is limited to the number of shares owned and ownership can be transferred
  • Access to capital is enhanced through reliable sources like banks and tax benefits are available for directors and employees.
  • When it comes to signing contracts, possessing property, and carrying out commercial operations, a registered corporation is seen as a dependable and trustworthy organization.
  • Setting up a business in India might also facilitate equity fundraising for your enterprise, as investors might have greater trust in a legitimate organization.
  • To increase your reach and forge new connections, networking is essential. It helps you network and stay current with industry developments, which can lead to opportunities for cooperation and assistance from one another.
  • Many advantages make registering a corporation in India a desirable choice for business owners.
  • Private limited corporations have the potential to assist entrepreneurs in creating lucrative and successful enterprises due to their limited liability protection, distinct legal entity status, finance accessibility, and tax advantages.
  • Businesses may successfully strategy and position themselves for success by comprehending the subtleties of brand scaling, distinguishing it from brand growth, and recognizing the rewards and difficulties that come with it.
  • A robust corporate identity communicates to stakeholders that a company is competent, self-assured, and dedicated to its objectives and core values. It also shows the professionalism, quality, and dependability of the organization.
  • It assists the business setup in India in maintaining its good name and handling any problems by proving to its stakeholders that it is transparent, accountable, and responsible.
  • An effective company brand encourages and stimulates internal stakeholders to work hard, communicate clearly, and come up with new ideas.

Mandatory Requirements for Company Registration

Group 1130
Group 1131
Group 1132
Group 1134
Group 1133

Why Choose VJM to setup business in India?

VJM Global provides comprehensive assistance for foreigners in the USA to guide them through the best entry and exit strategy for setting up and operating in India, including the incorporation of foreign companies. Our experienced team also takes responsibility for fulfilling the legal compliances that are required for setting up business in India. We pride ourselves on our transparency, in-depth knowledge of the Indian market, and 100% commitment to client satisfaction in setting up a foreign company in India. Whether you want to set up an Indian subsidiary or a branch office or a project office or a liaison office of a foreign company in India we provide unparalleled services to foreigners in the USA for all their business needs.

  • Our Expertise
  • Our Approach
  • Our Commitment
  • Our misson

Our Expertise

  • Advisory Services: Advise on the strategy for India set up & optimal business structure to establish a strong legal base in India.
  • Legal Services: Expert guidance on pre and post-incorporation legalities, including location selection and document drafting.
  • Secretarial Services: Compliance with corporate governance regulations, other financial regulations, shareholders/ investor communication and related admin work.
  • Taxation of Expatriates: Decode various contentious and commonly encountered tax and regulatory challenges faced by the expatriates and their employers in India.
  • FEMA Advisory services: Advising on the FEMA guidelines for inbound investment, covering almost all areas of FEMA, bookkeeping and accounting tasks, GST returns etc.

Our Approach

  • Market Exploration: We create extensive market research and consultancy reports that have key insights, knowledge and trends of the Indian market which helps you in making wise business decisions.
  • Partner Identification: Locating, initiating discussions and negotiations with potential partners viz. joint-venture partners, distributors, franchisees etc. for starting new relationships in India, or formalizing or re-configuring existing ones.
  • Fulfilling Legal Obligations: : We help you navigate the complexities of Indian business regulations smoothly, allowing you to focus on core operations while adhering to all legal and regulatory obligations.
  • Physical Setup: : We then assist you in locating feasible office spaces, provide a communication address and assist with lease agreements.
  • Approval Process & Ongoing services: We expedite regulatory clearances and continuously navigate through all regulatory complexities.

Our Commitment

  • Company formation in minimum timeframe: We've been helping foreign businesses in the USA succeed and provide full support to set up companies in India in a minimum timeframe.
  • Comprehensive Expertise: A dedicated team of business setup consultants, guiding clients through every aspect of their business journey: business setup, accounting, audit, tax compliance and back-office support.
  • Tailored Approach: : Whether you are a startup or an established enterprise in the UAE, we work closely to develop customized solutions that align with your goals and industry regulations.
  • Audit Excellence: We provide comprehensive audit services that offer valuable insights and ensure accurate financial records to foreigners.
  • Transparent Pricing: We offer the most affordable company setup cost in India which promotes trust and financial transparency.
  • Dedicated Support: Our experts are committed to providing prompt and reliable support in the areas of strategies, compliance, and taxes.

Our misson

  • EAI International
  • Assocham
  • PHD Chamber of Commerce:
  • Competition Commission of India
  • Okhla Garment & Textile Cluster (OGTC)

Popular Indian cities Americans choose to set up their company

Ellipse 108

New Delhi

Ellipse 110

Gurugram

Ellipse 109

Kolkata

Ellipse 111

Hyderabad

Ellipse 113

Bangalore

What our clients have to say?

We are a US-based Company with a strong presence in India. We hired VJM Global to manage our accounts and related compliances so that we can focus on our core activities. VJM Team has been extremely professional and reachable, and have carried out the activities with utmost planning, structure, and professionalism.
Mr. Samarjeet SinghINCUBIT GBS PVT. LTD, US-BASED
I hired VJM Global and now I can completely focus on my business because I know there’s someone who is managing my accounts properly. Their team (including Khushboo and Jayant) is super supportive and friendly. I highly recommend VJM Global. Give them a try! You won’t be disappointed.
Mr. Vikrant ShauryaCEO AT THE BOOKS FACTORY, INC. AND XENBI WEB TECHNOLOGIES PVT. LTD.

Frequently Asked Questions

Have a question? We are here to help

In an Indian firm, a non-Indian can serve as a director and shareholder, but they cannot have the sole position. At least one director of the company must be an Indian citizen. Multiple corporations may be registered at once by the same person. Further a NRI can also open One person company in India.

Only NRIs/ OCIs are allowed to invest in partnership/ proprietorship concerns in India on non-repatriation basis.

Yes, a person can become a director in more than one company or LLP at the same time. Further, a person can become a shareholder in more than one company.

No, even if the parent company is a proprietary company, there would be no risk to the new company’s operations in the future. To assist you in the registration of the company in India, VJM Global team would need the charter documents of the parent company. The charter documents include the registration certificate, the bylaws, and the memorandum of association.

Conversion from one form of company to another is permitted in following manner:

  1. Private Limited Company to Public Limited Company and vice-versa: A Private Limited company can be converted to public limited company and vice-versa provided the same is permitted in MOA and procedure specified under Companies Act, 2013 is complied. However, PAN and other registration certificates of the company will remain same only status of company from private limited to public limited will get updated.
  2. Partnership Firm to Private limited Company: Option to convert a Partnership firm to company is available but this process includes transfer of business from firm to Company. Newly formed company will be a new business entity having separate PAN, GST registration and other registration. Partnership firms will come to an end whose PAN and other registration will be required to be surrendered.

Forming a company, whether private limited or public limited, is having following advantages:

  1. Separate Legal Entity: Unlike sole proprietorships and partnership businesses, private and public limited companies are separate legal entities from their owners. Company can own property, incur debt, borrow money, establish a bank account, enter into agreements and contracts, sue and be sued in its own name.
  2. Limited Liability: Members’ liability in a private limited corporation is constrained to the number of shares held by the members. Therefore, if the company experiences financial trouble for any reason, the members’ personal assets won’t be used to settle the company’s debts because their liability is constrained.
  3. Perpetual Succession: Private companies have “perpetual succession,” which is continued existence up until their legal dissolution. Therefore, death or addmission of any of the members or directors of the company does not affect the existence of the company.
  4. In private corporations, the owners who own the business are in charge of management and control. While the owners retain the majority of the power, the members do have a voice.
  5. A private corporation is permitted to lend money to the company’s director and can easily compensate its directors or management, and team members. However, lending to the directors can be done subject to provisions of Companies Act, 2013.
  6. According to the Ministry of Corporate Affairs, private enterprises have been given a variety of exemptions from compliance requirements. Compared to public limited corporations, there are fewer compliances and restrictions.

Yes, subject to compliance with provisions of the Companies Act, 2013, Foreign Exchange Management Act (FEMA) 1999, Reserve Bank of India (RBI) Regulations, and Foreign Direct Investment (FDI) Policy, a foreigner can set up a public or private limited company in India. However, there must be at least one resident director on the board of a company owned by an NRI.

Also, with effect from 01.04.2021, an NRI can open a one person Company in India.

*Resident director is defined as a person who stays in India for a total period of not less than one hundred and twenty days during the immediately preceding Financial year.

After a company is incorporated, you can check for its details on a government website run by the Ministry of Corporate Affairs in India. Basic information about the company is available for checking by any person without payment of any charges. Information provided on mca portal is Company’s identification number (CIN), authorised capital, paid up capital, date of incorporation, registered office address, information about the directors, and annual filing status etc.

Further, all forms and documents filed by the company with RoC can be accessed by any person on payment of nominal fees on MCA portal.

Both the companies have different status and different treatment under Income Tax Act and Companies Act.

Domestic Companies are those which are incorporated under Companies Act, 2013 or earlier companies act. Domestic companies have status of resident in India and they are eligible to carry out all operations in India. Further, Domestic Companies are entitled to different tax holidays, concessional rate of taxes in India.

On the contrary, as per Section 2(23A) of Companies Act, foreign companies are those companies which are registered outside India in any other foreign country. Foreign companies can mark their presence in India through setting up LO/BO/PO and it can function under complete supervision of RBI. Further, foreign companies are liable to Income tax at a higher rate.

India is a lucrative option for foreign firms to initiate a business as the Indian government has business-friendly laws supporting foreign firms as well attractive foreign policies and a skilled workforce making India the 6th fastest growing economy in the world.

Following are the additional benefits:
1. Comprehensive Tax system
2. Low operational cost
3. Indian financial system
4. Vast Trade Network
5. Governmental Initiatives
6. Start-up India Movement

Overseas Citizen of India (OCI) is a more privileged form of NRI. Any of the following person is eligible to OCI:

  1. who was eligible to become citizen of India on 26.01.1950; or
  2. Who was a citizen of India on or at anytime after 26.01.1950; or
  3. Who belonged to a territory that became part of India after 15.08.1947; or
  4. Minor children of persons who are eligible for OCI.

OCIs are entitled to a multipurpose, multiple entry, lifelong visa allowing them to visit India at any time, for any length of time and for any purpose.

Further, Answer to the question that whether OCI is permitted to do business in India is Yes. An OCI holder can establish a business in India subject to conformity with the terms of the Foreign Exchange Management Act (FEMA), 1999, Reserve Bank of India (RBI) Regulations, and Foreign Direct Investment (FDI) Policy.

OCIs may participate in partnership or sole proprietorship businesses in India in addition to the aforementioned options on a non-repatriation basis.

A Non-resident Indian may commence a business by forming a Company or partnership form or proprietorship concern in India subject to conditions specified by RBI. A non-resident Indian or a foreigner does not require a residency visa to start a business in India.

However, to become director in an Indian Company or partners in partnership concern, the following documents are required:

  • Photograph
  • Application for Apostilled Digital Signature (You can get it From VJM global)
  • All foreign directors’ passports should be apostilled.
  • A certified copy of your address (Telephone, Electricity Bill, latest Bank Statement)
  • Apostilled driving license copy

Entrepreneurs who are planning to enter into the Indian market should ensure compliance with all the legal obligations of the prospective country. A person looking to enter into Indian market is suggested to follow below points to ensure legit setup in India:

  1. Identify purpose of set-up in India. A foreign entity may enter into India to make investment in the Indian market or to have a temporary presence in India to promote its business. Manner of setting up in India depends upon the purpose of set-up.
  1. Check FDI Permissibility in India: Once the purpose of presence is identified, the next step is to check whether such presence is permitted in India or not. E.g. If a foreign company is proposing to make FDI in a sector which requires prior approval of the government or which is prohibited or where partial FDI is permitted.
  1. Decide form of Business structure to be set-up: Once purpose of set-up and permissibility is identified, Foreign entity can take decision that how it need to mark its presence in India such as Liaison Office, Branch Office, Wholly Owned Subsidiary, Joint Venture, LLP etc.
  1. Proceed with Government approval and business set-up process: Once foreign entities identify a form of proposed unit in India, the very next step is to begin with completing legal formalities for setting up such business in India. Foreign entity may need to complete following formalities:
    • Obtaining Government approval, if required: If foreign entity is planning to enter into a sector which requires prior approval of the government, then foreign entity is required to obtain prior approval of the government.
    • Set-up Business entity: Once government approval is received for setting up business, Next step is setting up a business entity. This setup may involved incorporation of company, Forming Partnership firm, set-up LO/BO/PO in India.
    • Obtain registrations: Once a business entity is set-up, it requires multiple registration to function smoothly such as GST, PAN/TAN, Shops & Establishment, professional tax, EPF/ESI Registrations etc.
  1. Once the registered entity in India obtains all applicable registration, it may simply commence with business operations in India.

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