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A Liaison Office (LO) functions as a place in India which represents a foreign company primarily to understand and explore the general business environment, market research for the products of the parent company and to provide and seek information from potential customers or vendors. A liaison office can be set up for representing in India the parent company/group companies, Promoting export/import from/to India, Promoting technical/financial collaborations between parent/group companies and companies in India and to Act as a communication channel between the parent company and Indian companies.

Choose Form of Business

Pvt Ltd Company

A Private Limited Company is the most preferred form of business for Startup India, It is easy to incorporate and manage. Angel investor and any other long-term investor insist on a Company for making the investment. Further options for issuing ESOP is available in a company.

Limited Liability Partnership

Limited Liability Partnership is an advancement over the traditional partnership firms, with some characteristic features of a company, the limited liability. The process of incorporation of the LLP is complicated and at the same time, it lacks the potential to grow and is not preferred for funding.

One Person Company

Now you can form a company with just one person asshareholder and director. You need another person to become your nominee. However, an OPC needs to convert as a private/public company in case its capital crosses 50 Lacs, and the turnover exceeds 2 Crores.

General Partnership

An old form of business, traditionally it's not widespread and relevant. You can start a partnership firm by just signing a partnership deed. Even its registration is not mandatory, however, is necessary as an unregistered firm can not recover beyond Rs. 100 from its debtors.

Sole Proprietorship

It is for small business with a low budget, like small shops may open their store as a proprietorship concern. It's a one-person show where all profits and loss goes to the proprietor alone. Proprietorship business cannot be registered as such. However, all other registration may apply.

Section 8 Company

For a social, welfare, educational or charitable activity, you may start a company under section 8 of the Companies Act, 2013. Being an incorporated entity, it enjoys more credibility as a form of Non-Governmental Organisation in comparison to traditional forms such as society or trust.

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