Independent state structures existed on the territory of modern Indian around the 6th century BC. In 4th century BC, to the territory of the next republic came an army of Alexander the Great. In 3rd century AD ancient India starts its flowering, which was led by the Gupta dynasty. At the turn of the millennium in the territory spread Islamic faith, and the 16th century Europeans began colonization time. In 1765 in the region begins to dominate British and until 1947 India remains the colony. Currently India is parliamentary republic, whose main executive organ is the president.
India's rapid economic development began after 1991, when the combination of capitalism and socialism replaces liberalization processes that led to the development of foreign trade and investment. India occupies a leading position in the world of exportation of textiles, jewelry, engineering and software products. At the same time, the lack of mineral excavation makes republic dependent on oil and gas imports. Despite the large size of the nominal GDP and steady economic growth, still about a quarter of the population lives below the poverty threshold, literacy rate is about 60%
The most common business entities
The most popular type of business in India is a private limited company (PLC)
Indian law is based on the British common law.
The minimum registered capital shall be not less than 100 thousand rupees. This is to be paid not later than thirty days after the registration.
The main requirements for the directors and shareholders
Each company in India must have a Board which is consisting of at least two members, natural persons. In addition, at least one of them must be present in the territory of India 182 days a year. Every natural person applying for the post of Director shall have individual number. Director's name and number is publicly available information.
Indian companies must have at least two shareholders. They do not have any specific requirements.
Disclosure of the company’s beneficial to the government bodies
Information about the beneficial owner is disclosed to a bank during bank account opening process.
Indian resident companies pay 30% income tax on income earned worldwide, non-residents have to pay 40% tax on income generated in the country. Also pay an additional tax of 5%. There is an alternative minimum tax payment possibility. There is a tax on capital gains and dividends.
All companies are required to file tax returns.
All registered companies in India should have accounting records and keep them for up to 8 years in the company's registered office. As well as companies have to submit audited financial statements and submit an annual return.