GUIDE FOR SETTING UP A COMPANY IN WEST INDIA FLANDERS INVESTMENT & TRADE MARKET SURVEY GUIDE FOR SETTING UP A COMPANY IN WEST- INDIA August 2015 Jürgen Maerschand Flemish Economic Representative Sabine Steyaert Trade Assistant Flanders Investment and Trade Mumbai, Economic and Commercial Representation of Flanders and Brussels TCG Financial Centre, 7th Floor, C-53, G-Block, Bandra-Kurla Complex, Bandra (E) – Mumbai 400098 – India 2 TABLE OF CONTENTS 1. INTRODUTION ......................................................................................................................................6 1.1 Target .............................................................................................................................................6 1.2 Facts & figures ................................................................................................................................6 1.2.1 World Bank: Ease of doing business rank ...............................................................................6 1.2.2 World Economic Forum: Global competitiveness report ........................................................7 1.2.3 KOF: Globalization index .........................................................................................................8 1.2.4 Delcredere|Ducroire: Country risk assessment ......................................................................8 1.3 Economic profile .............................................................................................................................9 2. FOREIGN DIRECT INVESTMENT ........................................................................................................ 11 2.1 Facts & figures ............................................................................................................................. 11 2.2 Procedure .................................................................................................................................... 13 3. BUSINESS ENTITIES ........................................................................................................................... 17 3.1 Introduction ................................................................................................................................. 17 3.2 Operating as a foreign company ................................................................................................. 17 3.2.1 Liaison office ......................................................................................................................... 17 3.2.2 Branch office ........................................................................................................................ 18 3.2.3 Project office ........................................................................................................................ 19 3.3 Operating as an Indian company ................................................................................................. 20 3.3.1 Wholly owned subsidiary ..................................................................................................... 20 3.3.2 Joint venture......................................................................................................................... 21 3.3.3 Limited liability partnership ................................................................................................. 22 4. INCORPORATION .............................................................................................................................. 24 4.1 Private and public limited company ............................................................................................ 24 4.1.1 Administration ...................................................................................................................... 24 4.1.2 Related costs ........................................................................................................................ 26 4.2 Limited liability partnership......................................................................................................... 26 4.2.1 Administration ...................................................................................................................... 26 4.2.2 Related costs ........................................................................................................................ 27 4.3 Contact details business lawyers ................................................................................................. 28 5. RELEVANT INDIAN ORGANISATIONS ............................................................................................... 29 5.1 General contacts India ................................................................................................................. 29 5.1.1 Indian embassy ..................................................................................................................... 29 5.1.2 Invest India ........................................................................................................................... 29 5.1.3 Invest in India - portal .......................................................................................................... 30 Guide for setting up a company in West-India | August 2015 3 5.1.4 India in business - portal ...................................................................................................... 31 5.1.5 Make in India - portal ........................................................................................................... 31 5.1.6 Department of Industrial Policy & Promotion ..................................................................... 31 5.1.7 Foreign Investment Promotion Board .................................................................................. 32 5.2 Maharashtra ................................................................................................................................ 33 5.2.1 Maharashtra Industrial Development Corporation ............................................................. 33 5.2.2 Mumbai First ........................................................................................................................ 34 5.2.3 Mahratta Chamber of Commerce, Industries and Agriculture ............................................ 34 5.2.4 Sicom Ltd .............................................................................................................................. 35 5.2.5 Pimpri Chinchwad Municipal Corporation ........................................................................... 35 5.2.6 Hinjewadi Industries Association ......................................................................................... 36 5.3 Gujarat ......................................................................................................................................... 37 5.3.1 Gujarat Industrial Development Corporation ...................................................................... 37 5.3.2 Gujarat Industrial Investment Corporation .......................................................................... 37 5.3.3 Gujarat State - portal ............................................................................................................ 38 5.4 Goa .............................................................................................................................................. 39 5.4.1 Goa Industrial Development Corporation ............................................................................ 39 5.4.2 Goa State Infrastructure Development Corporation ........................................................... 39 5.5 Contact details general consultants ............................................................................................ 40 6. TAXES ................................................................................................................................................ 41 6.1 Introduction ................................................................................................................................. 41 6.2 Direct taxes .................................................................................................................................. 42 6.2.1 Corporate income tax ...................................................................................................... 42 6.2.2 Minimum alternate tax .................................................................................................... 43 6.2.3 Dividend distribution tax ................................................................................................. 43 6.2.4 Alternate minimum tax ................................................................................................... 43 6.2.5 Capital gains tax ............................................................................................................... 44 6.3 Indirect taxes ............................................................................................................................... 45 6.3.1 Central sales tax ............................................................................................................... 45 6.3.2 Value added tax ............................................................................................................... 45 6.3.3 Service tax ........................................................................................................................ 45 6.3.4 Excise duty ......................................................................................................................