Expand in the world’s fastest-growing economy, where scale, skill, and opportunity blend.
India, the world’s fastest-growing economy, is becoming a global hub for technology, services, and manufacturing. Its strategic position in Asia-Pacific, vast consumer base, young workforce, and competitive operational costs make it a prime destination for global businesses. But, for companies that want to enter the market quickly, traditional company registration can be complex and may not even be necessary.
This guide walks you through India’s company registration process and associated costs. It also explores whether an Employer of Record (EOR) can be a smarter alternative to company registration for your business.
The business benefits of registering your company in India
India is a promising market—it offers scale, talent, cost advantages, pro-business reforms, and a strong digital infrastructure.
Key advantages include:
- 1.4 billion consumers are driving rising demand across sectors
- A skilled talent pool in tech, engineering, and business services
- Investment-friendly incentives like “Make in India” and PLI schemes
- Common law legal framework, trusted by global investors
- Thriving startup ecosystem and tech partnerships
- Business-friendly digital and regulatory reforms
- Competitive labor and operational costs
- Widespread English use that supports global collaboration
Depending on your goals, you can enter India by setting up a legal entity or hiring through an Employer of Record (EOR). Company registration gives you complete control and a long-term base. An EOR, on the other hand, helps you hire quickly, stay compliant, and avoid the complexities of local setup.
Company registration or EOR? Compare India market entry options
For companies entering India, both company registration and EOR have their strengths. This comparison provides a clear breakdown
Aspect | Standard registration | Employer of Record (EOR) |
Purpose | Establishes a legal entity and grants you complete operational and financial control. | Enables hiring in India without a legal entity; EOR handles compliance and administrative tasks. |
Control | You retain full authority and responsibility over operations and decision-making. | You manage the team, while the EOR manages the admin and legal responsibilities. |
Compliance | You’re responsible for complying with Indian labor laws, tax filings, and reporting. | EOR ensures compliance with Indian employment laws and payroll taxes. |
Setup time | Typically 1–3 months, and involves multiple local registrations and approvals. | Begin hiring within weeks with a fully compliant local presence via the EOR. |
Cost | Legal fees, incorporation costs, accounting, payroll, and maintenance expenses. | Fixed monthly fee covers all hiring and compliance functions. |
Scalability | Suitable for long-term operations and larger teams. | Ideal for agile expansion or testing the Indian market with low risk. |
While company registration supports long-term investment, an EOR enables faster, lower-risk entry into the Indian market, ideal for companies prioritizing speed and agility.
How EOR simplifies India company registration
An EOR can become the legal employer for companies expanding into India, helping them set up a workforce here without creating a local entity. The EOR ensures that you adhere to employment laws and payroll taxes while reducing the administrative burden of onboarding, offboarding, and payroll management.
With an EOR, you:
- Save the time and expenses of company registration.
- Focus on growth while the EOR handles most paperwork and hidden costs.
- Effortlessly comply with India’s labor laws, tax regulations, and reporting standards.
- Add or remove employees without triggering permanent establishment risks.
An EOR is the simplest way to build a compliant team without getting tied up in legal or administrative complexity. But if you want to invoice Indian clients directly in INR, seek venture capital or equity investment, require regulatory licenses, or protect IP (Intellectual Property) locally, company registration will be necessary.
A step-by-step guide to registering a company in India
Company registration in India involves legal, tax, and administrative requirements—understanding them upfront can help you avoid delays and costly errors.
Step 1: Choose a business structure
- Private limited company (Pvt Ltd): Most common structure with limited liability and a minimum requirement of two directors or shareholders.
- One-person company (OPC): Designed for solo entrepreneurs who want to operate with limited liability. Sole shareholders of an OPC must be Indian citizens.
- Limited liability partnership (LLP): A hybrid model combining company and partnership features.
- Public limited company (PLC): Suitable for larger businesses planning to raise capital from the public and list on stock exchanges.
Step 2: Obtain a digital signature certificate (DSC)
In India, all proposed directors must obtain a DSC, which is mandatory for electronically signing incorporation documents and statutory filings. To obtain one, apply via the online portals of a licensed Certifying Authority (CA) such as eMudhra, Sify, and nCode. You will need to submit your application form, e-KYC, payment, and supporting documents, including proof of identity, address proof, and the class of certificate you’re applying for.
Once issued, your DSC will be valid for 1–2 years, and you must renew it before expiry.
Step 3: Obtain a Director Identification Number (DIN)
Every proposed director must also have a DIN. Apply for it alongside your company registration process using the SPICe+ form.
Step 4: Reserve a name and submit company details
Company names in India must be unique and comply with legal requirements, following the Companies Act, Trademark Act, and Names and Emblems Act guidelines. Search for name availability here and then register your company name via the Simplified Proforma for Incorporating Company electronically (SPICe) with eMOA.
Step 5: File incorporation documents (SPICe+ MOA and AOA)
You will need to submit the SPICe form (part A + B), including:
- Two proposed name options for approval
- Details of your company type, class, category, and sub-category
- Specifications of industrial activity
- Detailed business description and information on capital
- Registered office address
- Directors’ details, stamp duty, PAN, and TAN application
Next, draft and submit the Memorandum of Association (MOA) and Articles of Association (AOA) with the necessary digital signatures to the MCA for approval.
Foreign companies should also file the eForm FC-1.
Step 6: Get the certificate of incorporation
Once your application is approved, the Registrar of Companies (RoC) issues a certificate of incorporation, including the corporate identity number (CIN). You will also be allotted a Permanent Account Number (PAN). This certificate is the legal proof of your company’s existence, and you will require it for subsequent processes such as opening a bank account.
Step 7: Open a corporate bank account
A corporate bank account is essential for capital contributions, payroll processing, and business transactions. Most major banks in India (e.g., State Bank of India, HDFC, ICICI) offer corporate account services, and many also provide digital onboarding.
Step 8: Post-registration compliance
Post registration, you must register for GST if your annual turnover exceeds the threshold (currently ₹20 lakhs, or ₹10 lakhs for special category states). Depending on your company structure, you may need to maintain statutory registers, appoint an auditor, or conduct a board meeting within a stipulated time. You may also need to register with relevant bodies for EPFO, ESIC, and Professional Tax to ensure statutory benefits for employees and adherence to state-specific labor laws.
State-specific compliance requirements
India’s regulatory framework varies by state, impacting your overall compliance costs.
Here’s what you need to know:
- Shops and Establishments Act: Every state requires registration under its Shops and Establishments Act. Registration timelines, fees, and processes vary—for example, Maharashtra mandates registration within 30 days of starting operations, while others offer more relaxed timelines.
- Professional Tax (PT): PT is mandatory in states like Maharashtra, Karnataka, and Tamil Nadu, but rates and filing frequency differ by location and employee count.
- Additional local requirements: Depending on your industry and office location, you may need municipal licenses, fire safety clearances, or environmental permits—especially in metros or industrial zones.
Though many aspects of company registration in India are now digitized, global companies often need legal and tax consultants to navigate complex GST rules, state-specific compliance, and labor laws. The process can be time-consuming, complex, and costly. In the next section, we examine these costs in detail.
The real cost of registering a business in India
Understanding the financial aspects of company registration in India is critical for effective planning and resource allocation. Costs can vary based on the business structure, required licenses, and operational needs.
Registration costs
- Digital signature certificate (DSC): ₹1,000–2,000 per director
- DIN (with SPICe+): Included
- Name reservation (RUN): ₹1,000
- SPICe+ filing: ₹0 to ₹7,000 depending on capital
Share capital
- Pvt Ltd: No minimum, but ₹100,000 is typical
- PLC: Minimum ₹500,000
Professional/legal services
- Incorporation assistance: ₹5,000–20,000 (estimated, fees vary across providers)
- Accounting & secretarial services: ₹10,000–50,000/year (estimated, may vary by company size and complexity)
Government fees & maintenance
- Annual RoC filing: Varies by capital
- GST and tax filings: Periodic, can involve third-party service costs
- Registered office and audit fees: ₹10,000–50,000 (estimated, varies by city and auditor)
Optional
- Trademark registration: ₹4,500–9,000
An Employer of Record (EOR) reduces costs by managing payroll, compliance, and administration without requiring a local entity. With a predictable monthly fee, it eliminates upfront expenses and simplifies operations.
Cost comparison: Standard registration vs. EOR
Understanding the financial implications of traditional company registration versus partnering with an Employer of Record (EOR) can help you make an informed decision.
Here’s a side-by-side comparison for India:
Category | Standard registration | Employer of Record (EOR) |
Setup time | 1–3 months (multiple registrations and approvals) | 1–2 weeks (rapid onboarding via local EOR partner) |
Initial setup cost | ₹10,000–₹25,000 (registrations, documentation, filings) | With an EOR, you can avoid the need for setup |
Share capital | Typically ₹100,000 for Pvt Ltd | Not required |
Legal & compliance | ₹20,000–₹50,000 annually (tax, RoC filings, audit) | Local expertise for onboarding, benefits, and payroll is part of the monthly EOR fee |
Payroll services | ₹10,000+/month (outsourced or internal costs) | Covered in the monthly EOR fee |
Traditional registration involves upfront investments and ongoing administrative management, making it a better fit for long-term, large-scale operations. In contrast, an EOR offers a more streamlined, cost-effective alternative.
With predictable fees covering compliance, payroll, and other operational needs, an EOR like Multiplier is an efficient and scalable market entry solution in India.
Stress-free India expansion with Multiplier
Expanding into India should mean agility to meet new opportunities and rapid growth. Multiplier’s Employer of Record (EOR) solution offers a robust alternative to company registration where you hire, manage, and grow your team in India without setting up a local entity or worrying about compliance.
Here’s how Multiplier makes your India expansion seamless:
Local hiring expertise
Build your Indian team effortlessly with compliant employment contracts, streamlined onboarding, and proper documentation—all managed by our local specialists.
Effortless payroll management
Navigate India’s multi-layered tax system with confidence. Multiplier handles salary calculations, tax deductions, and statutory contributions across all Indian states with robust payroll management.
Comprehensive HR platform
Manage your entire HR workflow in one place—from employee onboarding and leave tracking to expense approvals and performance management.
Complete compliance, zero hassle
Ensure compliance with India’s labor laws, including state-specific regulations, statutory benefits, and reporting requirements.
Tailored benefits packages
Attract top Indian talent with competitive, locally relevant benefits—all administered seamlessly through our platform.
Reliable support & security
Access dedicated support from India specialists when needed, backed by enterprise-grade security and strict data protection protocols.
Whether your company is testing the market or hiring remote teams, Multiplier offers a safe, efficient, and effective solution. Book a demo today to see how we help businesses like yours tap into the India opportunity with confidence.
