About Us Establishing a Company

ESTABLISHING COMPANY

 

A:   Establishing company in India

Any foreign investors can commence business in India as:

  1. Foreign company
  • Liaison office – To represent parent company in India
  • Branch office – To undertake activities such as export, import of goods, research, consultancy etc.
  • Project office – Activities as per contract to execute project
  1. Indian Company:
  • Joint Venture or Wholly owned subsidiary – Any investor can enter into a JV or Wholly owned subsidiary as either Private Ltd. or Public Ltd company subject to Companies Act 2013
  1. Limited Liability Partnership:
  • LLP (Subject to provisions of LLP Act, 2008)
  • FDI permitted under automatic route in LLPs operating in sectors/ activities where 100% FDI is allowed via automatic route and there no FDI linked performance conditions

Types of permitted business establishments in India:

  • One-person company
  • Private Ltd. company
  • Public Ltd. company
  • Sole proprietorship
  • Partnership firm
  • Limited Liability Partnership
  • Foreign company

Taxation:

Over the last few years, the government of India and various State (provincial) Governments have undertaken various policy reforms and process simplification towards great predictability, fairness & automation. This has consequently, lead to India’s consistent rise in the World Bank’s Ease of Doing Business (EoDB) rankings over the past few years. India stands on the 63rd position out of 190 countries as per the latest EoDB rankings (2020).

Key Features of India’s taxation System:

  • Taxes in India are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such as the Municipality and Local Government.
  • A resident company is taxed on its worldwide income. A non-resident company is taxed only on income that is received in India, or that accrues or arises, or is deemed to accrue or arise, in India. Company whether Indian or foreign is liable to taxation, under the Income Tax Act,1961.
  • Corporation tax is a tax which is levied on the incomes of registered companies and corporations. Taxes in India are primarily into 2 categories - Direct and Indirect Tax.

Goods and Services Tax (GST) is a unified indirect tax across the country on products and services. It is a comprehensive levy on manufacture, sale and consumption. It is a destination-based consumption tax.

  • The GST, dual in nature is levied by both the Centre and State. The Central GST (CGST) is levied on intra state supply of goods and / or service by Central Government and State GST (SGST) is levied by the States.
  • Integrated GST (IGST) is levied and administered by the Centre on every inter-state supply of goods and services.
  • Import of goods or services is treated as inter-state supplies and is subject to IGST in addition to Basic Custom duty.
  • CGST, SGST and IGST is levied at uniform rates, mutually agreed upon by the Centre and the States under the aegis of the GST Council (GSTC).
  • All goods and services are covered under GST except alcohol for human consumption and specified petroleum products.

Source: Make in India, https://www.makeinindia.com/

Further information on procedures for establishing business in India can be found at:

 

B:       Establishing company in Slovenia

Slovenia with its strategic geopolitical position, well-developed infrastructure and skilled human resources, provides favorable location for establishing business operations. It also provides easy access to reach the largest economy in the world - European Union – with 500 mil consumers and average GDP per capita of EUR 25,000.

Permanent business operations in Slovenia require owners to register companies as  business entities. Administrative procedures for business registration are rather straightforward, with single-access points of registration being available.

Non-EU nationals establishing a business in Slovenia require:

          1) Obtaining entry visa,

          2) Registering company as business entity,

          3) Obtaining single permit to reside and work in Slovenia.

Economic activity in Slovenia may be performed by an individual or business in a variety of legal and organizational forms. There are different legal options for registering economic activities, with sole trader (samostojni podjetnik - s.p.) being most common for individual traders, and limited liability company (družba z omejeno odgovornostjo - d.o.o.) for legal entities. Minimum paid-in capital requirement for most common legal form of limited liability company is EUR 7,500. 

In Slovenia taxation is regulated by the Financial Administration of the Republic of Slovenia. Value added tax (davek na dodano vrednost – ddv ) on goods and services is charged and paid at a general rate of 22%, exception are certain goods and services for which a reduced rate of 9.5% is applied. Corporate income tax is set at 19% and personal income taxes are set at progressive rates of 16%, 27%, 34%, 39% and 50%.

Further detailed information on legalities and procedures for establishing business in Slovenia can be found at: