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Foreign Investors hviagra the following business module available in India.

1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership (LLP)
4. Private Limited Company
5. Public Limited Company

The foreign companies are also allowed to setup their business entity in India in the following manner:
Branch Office

1. Liaison Office/Representative Office
2. Project Office
3. Joint Venture Company
4. Subsidiary Company

It may be noted that a Joint Venture Company or Subsidiary Company could be either a Private Limited Company, or a Public Limited Company

Selection of right kind of business module depends upon so many factors. It is always advisable to consult a Chartered Accountants firm well versed in law before taking final decision in this regard as the matter has to be viewed from various angles which includes the applicability of the provisions contained under the Companies Act, 1956, Foreign Exchange Management Act, 2000 (FEMA), Income Tax Act, 1961 other applicable Indian Rules

Any resident / non resident who intents to start business in India has to select its business modules. The following are various type of business module :

1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership
4. Private Limited Company
5. Public Limited Company
6. Association of Persons

In India most popular and advisable business module is “Private Limited Company”. The following chart contains various formalities for incorporating a Private Limited Company in India.
UNIQUE FEATURES OF BUSINESS MODULES IN INDIA

PRIVATE LIMITED COMPANY
A private limited company has the following features:

Number of shareholders is limited to fifty excluding its present

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Drafting of Deeds

What is a Joint Venture?

Joint Venture Companies are the most preferred module of corporate entities for doing business in India to achieve specific objectives of a partnership like temporary arrangement between two or more firms. JVs are advantageous as a risk reducing mechanism in new-market penetration, and in pooling of resource for large projects. The Companies incorporated in India, even up to 100% foreign equity, are at par at domestic companies. A Joint Venture may be any of the business modules available. There are no separate laws for joint ventures in India. They, however, present unique problems in equity ownership, operational control, and distribution of profits (or losses).

A typical Joint Venture is where:
Two parties agree to co-operate their business in a limited and specific way wherein they incorporate a company in India. Business of one party is transferred to the company and as consideration for such transfer, shares are issued by the company and subscribed by that party. The other party subscribes for the shares in cash.
Other option could be to setup a separate joint venture business, possibly a new company, to handle a particular contract. The partners own shares in agreed proportion in the company and agree how it should be managed.
1.Promoter shareholder of an existing Indian company and a third party, collaborate to jointly carry on the business of the company and its shares are taken by the said third party through payment in cash.

Note:
The shareholder of such company would be Individual or body corporate
The shareholder of such joint venture company may be one resident and one non resident or both residents.

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Incorporation of Joint Venture Company (JV).

There are no separate laws for incorporation of joint venture Company in India. It is incorporated or established like a private limited company or a public limited company under the Indian Companies Act, 1956. However, the following key issued should be addressed before establishment of Joint Venture Company:
To check sectoral cap for foreign direct investment in the proposed joint venture.
Drafting of Memorandum

Income Tax:

We will provide you with the best Income tax planning. You need not worry about the compliances with the law of taxation, TDS (Tax Deduction at source) as we are there to handle them. These taxation laws come with huge time bound obligations and we are used to it!

Wealth Tax:

Do you know – Wealth tax is payable only if the valued wealth exceeds Rs.15 Lacs. What is wealth and what is the valuation? Let us know if you are interested

Service Tax:

The law of service tax in India is no longer new. It is a full-grown taxation law today. Registration, Returns, Remittances, etc. are not that simple. We are always there to help you out.