Choosing the Right Entity Structure
Selecting the appropriate legal structure is one of the most important decisions for your India market entry. The right structure depends on your business model, FDI route, planned activities, and long-term objectives.
Private Limited Company
- Separate legal entity with limited liability
- Minimum 2 directors and 2 shareholders required
- Can raise equity funding from investors
- Most common structure for foreign-owned subsidiaries
- Subject to Companies Act 2013 compliance
Limited Liability Partnership (LLP)
- Hybrid structure combining partnership and company benefits
- Lower compliance burden compared to a company
- Not suitable for all FDI routes — check RBI/FEMA eligibility
- Cannot issue equity shares
Branch Office
- Extension of foreign parent company — not a separate legal entity
- Requires RBI approval
- Restricted to specific activities permitted by RBI
- Higher compliance and repatriation complexity
Advisory note: Entity structure selection has significant legal, tax, FEMA and operational implications. This overview is for general information only. Legal, tax and regulatory conclusions require qualified professional review.
Advisory note: This guide is for general information and awareness purposes only. Inaac Advisors provides advisory and execution support — not legal, tax, or regulatory opinions. Legal, tax, immigration and regulatory conclusions require qualified professional review.
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