Types of companies in India
- Private limited company
- Responsibility
- Minimum capital
- Min. shareholders
- Generally, recommended for
- Private limited company
- Limited
- 1,400€
- 1 (max. 50)
SMB
- Public limited company
- Limited
- 7,100€
- 7
Big companies
- Partnership
- Unlimited
- None
- 2 (max. 20)
- Generally, recommended for
- Sole proprietorship
- Unlimited
- None
- 1
Sole holder
- Cooperative
- Limited
- None
- 10
- Generally, recommended for
Corporate tax rate in India
In India, the corporate tax rate is:
- 42% for foreign companies and their subsidiaries,
- 36% for local companies.
Nonetheless, India and France have signed a convention which forces India to apply the lower tax rate granted to a state member of the OECD.
The rate is 10% for Germany so French companies also benefit from this rate.
Questions
Why should I incorporate my company in India?
- The roots of economic growth are diversified.
- The private sector is competitive, especially in the services sector.
- The savings and investment rates are high.
- The foreign reserve assets are substantial.
- The foreign debt is small.
Which difficulties can be encountered in India?
- Lack of infrastructure.
- The companies’ indebtedness is substantial.
- Public finances are weak.
- It is difficult to find skilled and competitive labor.
Which are the cultural specificities of the world of work in India?
- In India, it is ordinary to ask questions about private life during the first meeting.
- One exchanges business cards at the beginning of the meeting.
- It is recommended to keep a certain distance with people. Physical contacts even with people of same sex can be considered shocking in public.
- If you are a man, do not offer to shake hands first, wait for the woman to do it.
- Family circles hold an important place in business.
From which advantages can we benefit while implementing a company in India?
- Special Economic Areas exist.
- Tax exemption for the five first years.
