Expand Business in India
Global Upside helps businesses expand into India by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Indian laws and regulations.
The hiring and incorporation processes in India are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in India. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Situated in South Asia, India is a multilingual, multi-ethnic, and multi-cultural country. With a population of more than 1.3 billion people, India is the largest democracy in the world and a hub for information technology (IT) services.
- India ranks as the 5th largest economy in the world by nominal GDP.
- India ranks as the 3rd largest economy in Asia
- India has the world’s fastest-growing telecommunication
- India has the 2nd fastest-growing automotive industry
- India has the world’s largest manganese ore production and the world’s 4th largest coal reserves
A private limited company (PLC) is a popular legal entity setup in India due to its comparative simplicity of establishment. All PLCs must be registered with the Registrar of Companies (ROC). It takes a minimum of two investors to establish and there is no minimum capital requirement.
A limited liability partnership (LLP) is a combination of the features of a legal entity and a traditional partnership. There should be at least two chosen partners, out of which two must be from India. This form of setup is suitable for small to medium-size businesses.
A branch office (BO) is an extension of the parent company and can engage in contract-signing, filing of returns, and trade only after approval from the Reserve Bank of India (RBI). The liability risks in such an establishment are significant and are borne by the parent company.
A representative office (RO), also known as liaison office (LO), helps the parent company in advancing export/import to and from the nation. Additionally, it boosts the financial and technical associations with other resident firms. This kind of establishment also acts as a means of communicating between the parent company and the suppliers in the country.
It takes a minimum of 3 to 4 weeks to incorporate a legal establishment in India.
According to the Industrial Disputes Act, 1947 (IDA) employees are divided into two categories – workmen and non-workmen/managerial employees. A workman is an employee who is hired to do manual, skilled or unskilled, clerical, operational, and technical work for reward or hire. On the other hand, a non-workman is an employee who takes care of the administrative or managerial position and withdraws a salary of more than INR 10,000 per month. There are also certain laws that have been implemented for the recognition and protection of fixed-term employees and contract laborers.
With reference to the labor laws in India, the following information must be included in all employment agreements:
- Name of both the employer and employee
- Date of appointment
- Job description
- Job location
- Employment period and working hours
- Probationary period (if any)
- Traveling allowance (if the work requires travel)
- Holidays and paid leaves
- Notice period
- Retirement and pension schemes
Indian Accounting Standards are based on the guidelines set out by the International Financial Reporting Standards (IFRS).
The Personal Data Protection Act (PDPA) will govern all personal data of employees. The Information Technology Act (ITA) of 2000 protects data violations and breach of personal details. This law protects against any infringement regarding unauthorized use of computer systems and data and produces a liability for any form of damage caused in the event of unlawfully downloading, accessing, copying, or extracting data from a network or system.
Anti-Bribery & Anti-Corruption Law
In accordance with the Prevention of Corruption Act 1988 (PCA), the receipt of undue advantage is illegal and is explained below:
Bribery of Public Officials:
i) Imprisonment for a minimum of 6 to a maximum of 10 years
ii) Confiscation of the assets resulting from the crime
iii) A monetary fine
i) Imprisonment for 7 years
ii) A substantial monetary fine
iii) Additional legal penalties