It is not uncommon for us to be approached by companies with a specific desire to set up a company in India. Of course, setting up an Indian branch is part of our service portfolio. However, behind the desire to start a company there is always a specific goal that should be achieved. Typically these are
- the independent distribution of products and services in India,
- Employment of personnel for service and sales, or the
- Avoiding one tax permanent establishment, which in many cases results automatically from one's own involvement in India.
Therefore, when we receive an inquiry about setting up a company, we do not react reflexively with a specific offer, but rather always take enough time in advance to understand and analyze the business model of the respective company.
At the end of a corresponding examination, a company can – but does not have to – be founded. Other solutions can prove to be cheaper and more practical, especially for smaller companies - for example Employment of employees (service, sales).
In the interests of our customers, we develop the solution with the lowest legal risk (minimal vulnerability in India and Europe (keyword: enforcement liability - “Corporate Veil”) and suitable for long-term (!) strategic planning.
If you buy cheap, you buy expensive...
The formal process of setting up a private limited in India is actually a “standard process” (with numerous certifications), which can also be obtained through Indian lawyers and agencies – at extremely competitive prices. Without the “consultant” having dealt with the business and the entrepreneurial goals in India, every inquiry is - in true Indian style - immediately answered with a concrete financial (fixed price) offer that is difficult to refuse.
However, in the hope of generating follow-up and additional business, it is not uncommon for (Indian) service providers to deliberately exclude topics. As a rule, the costs for those tasks that are not part of the founding are often many times higher.
In addition, not foresighted and sloppy company formation often creates situations that often cause massive problems (compliance, dependencies on service providers) even years later can cause follow-up costs.
Interdisciplinary and intercultural
Instead, rely on German-speaking practitioners who have already taken on entrepreneurial responsibility in India. A former CFO or head of administration naturally approaches the topic of “founding a company in India” differently than a lawyer, notary or tax advisor. These can certainly act efficiently, but are rarely effective.
As more prudent Full-service provider We offer our customers practical solutions instead of setting up an off-the-shelf company! Our aim is always to be easily accessible to you - without time differences and without linguistic or intercultural misunderstandings.
Please feel free to contact us today!
