India

Currency

Indian Rupees (INR)

Payroll Frequency

Monthly

Employer Taxes

15.25%

About India

Iceland is a Nordic country located in the north Atlantic, an island nation that is sparsely populated, with the majority of its inhabitants living in or around its capital, Reykjavik. It is famous for its hot springs (like the Blue Lagoon), geysers and active volcanoes. Lava fields cover a lot of the land and hot water is pumped from under the ground to supply much of the country’s heating.

Icelandic culture is founded upon its Scandinavian heritage, with most of its inhabitants descended from Norse and Gaelic settlers. The language is North Germanic and descended from Old West Norse and Faroese. Iceland is a wealthy country with a market economy that provides for its citizens via a Nordic-style welfare system.

Icelandic cuisine includes traditional dishes skyr (a thick yogurt), hákarl (cured shark), cured ram, singed sheep heads, and black pudding, Flatkaka (flat bread), dried fish and dark rye bread traditionally baked in the ground in geothermal areas, as well as Puffin, a local bird and delicacy that is often prepared through broiling.

Company Formation Services in India

Aadmi streamlines business formation services in India and makes it easier and less cumbersome. It includes the incorporation of a company in the Ministry of Corporate Affairs (MCA), the selection of the appropriate form (sole proprietorship, partnership, or private limited company), and being fully compliant with business laws in India. The majority of businessmen prefer a private limited company in India because of its credibility, investor viability, and ease of operation.

With our experienced support, establishing your business in India is easy, so that you remain compliant and growth-oriented.

Company Types

Private Limited Company

A Private Limited Company in India is a popular business structure and is considered a separate legal entity from its shareholders. It requires a minimum of two and a maximum of 200 members. The liability of each shareholder is limited to the value of shares held. Private Limited Companies cannot publicly trade their shares and must have at least two directors, one of whom must be an Indian resident.

Branch Office

Foreign companies engaged in manufacturing or trading abroad can establish a branch office in India to conduct business activities. The branch is not considered a separate legal entity and all liabilities incurred by the branch are borne by the parent company. Branch offices require prior approval from the Reserve Bank of India (RBI).

Partnership

A partnership in India can be formed between Indian residents and foreign investors under the Limited Liability Partnership (LLP) model. LLPs are registered with the Ministry of Corporate Affairs (MCA) and provide the benefits of limited liability along with operational flexibility. Foreign partners in LLPs must meet RBI and Foreign Direct Investment (FDI) guidelines. Partnerships allow businesses to leverage local networks, resources, and market knowledge while sharing risks and responsibilities.

Incorporation Requirements

Paid-Up Capital

There is no statutory minimum paid-up capital requirement to incorporate a Private Limited Company in India. However, authorized capital must be declared at the time of incorporation.

Foreign Percentage Ownership

Foreign nationals and entities can hold up to 100% equity in Indian companies in most sectors under the automatic route, meaning prior government approval is not required. Sector-specific FDI limits apply, and any exceptions fall under the government approval route.

Local Director

At least one of the directors must be a resident of India, defined as someone who has stayed in the country for a minimum of 182 days in the preceding financial year.

Corporate Secretary

India does not mandate the appointment of a Company Secretary for Private Limited Companies with a paid-up capital below INR 10 crores. However, if appointed, the secretary must be a qualified professional registered with the Institute of Company Secretaries of India (ICSI).

Local Office Address

A local registered office address in India is required at the time of incorporation. This address will be used for all official communications and must be capable of receiving postal correspondence.

Incorporation Documentation

What are Company Incorporation Documents to submit?

Digital Signature Certificates (DSC) of directors
Director Identification Number (DIN) for all directors
Identity and address proof of directors and shareholders
Memorandum of Association (MoA)
Articles of Association (AoA)
Form SPICe+ (Simplified Proforma for Incorporating Company electronically)
Declaration by first directors and subscribers (Form INC-9)
Registered office address proof
Board resolution or power of attorney (for corporate shareholders)

Incorporation Process

Register and Reserve the Name of the Company

The proposed company name must be submitted via the RUN (Reserve Unique Name) service or through the SPICe+ form. The name must adhere to naming guidelines issued by the MCA and must not be identical or similar to existing companies or trademarks.

Decide Filing Method

In India, the incorporation process is completed through the Ministry of Corporate Affairs’ online platform using the SPICe+ form. It includes name reservation, incorporation application, DIN allotment, PAN/TAN application, EPFO/ESIC registration, and opening a bank account.

SPICe+ Form (Web-based): Mandatory for all incorporations. Typically processed within 5-7 working days.
Professional Certification: A practicing Chartered Accountant, Company Secretary, or Cost Accountant must digitally certify incorporation documents.

Prepare Incorporation Documents

All incorporation documents, including MoA, AoA, and ID proofs, must be uploaded to the MCA portal with digital signatures. The Registrar of Companies (ROC) will verify and approve them.

Registrar of Companies (RoC)

The RoC operates under the Ministry of Corporate Affairs and is responsible for administering the Companies Act in India. It oversees company registration, filing compliance, and maintenance of statutory records. There are regional RoC offices located across major cities in India.

Bank Account

After incorporation, opening a corporate bank account is mandatory. This typically involves submission of the Certificate of Incorporation, MoA, AoA, PAN card of the company, and KYC documents of directors. Banks may request in-person verification and conduct internal due diligence. Leading Indian banks include SBI, HDFC, ICICI, Axis Bank, and Kotak Mahindra Bank.

Statutory Registrations

Goods and Services Tax (GST)

Companies with an annual turnover exceeding INR 40 lakhs (INR 20 lakhs for service providers) must register for GST. The registration is mandatory for inter-state trade, e-commerce operators, and certain professional services, regardless of turnover.

Employees’ Provident Fund Organization (EPFO)

Registration is mandatory for companies with 20 or more employees. Contributions from both the employer and the employee are made towards the provident fund and pension schemes.

Employees’ State Insurance Corporation (ESIC)

Companies employing 10 or more individuals with monthly wages below INR 21,000 must register for ESI to provide medical and sickness benefits to workers.

Professional Tax

Professional Tax registration is mandatory in specific states such as Maharashtra, Karnataka, and West Bengal. It is levied on salaried employees and must be deducted by the employer.

Shops and Establishments Act

Every commercial establishment must register under the respective state’s Shops and Establishments Act, generally within 30 days of commencing business.

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Employment Relationship

• Permanent Employment

Permanent employees are those hired for any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical, or clerical work for hire or reward, whether the terms of employment be express or implied, with no fixed termination date. Employees in industrial establishments become permanent after their probation of 6 months. Permanent employees enjoy statutory benefits such as paid annual leave, sick leave, gratuity pay, provident fund, and compulsory health insurance.

• Fixed-Term or Specific-Purpose Contracts

Employees can be hired through express (written or oral) or implied contracts. Contracts for fixed-term must be made in writing. Employers should be vigilant for provisions requiring written contracts in collective agreements or state-level laws. Employers must issue appointment letters to all employees. Appointment letters should include the following information: Employee name and date of birth Father's/Mother's name Aadhaar number (with consent) Establishment Labour Identification Number Universal Account Number and/or Insurance Number Type of employment Position and category of skill Date of hire Wages and other allowances Growth or promotion opportunities Social security benefits (Employees' Provident Fund Organization and Employees' State Insurance Corporation) General nature of duties to be performed Statutory maternity benefits available Any other information

• Temporary Employment Contratcs

In India, a temporary worker is a worker who has been engaged for work that is of an essentially temporary nature and likely to be finished within a limited period. Most temporary contracts are handled through temporary work agencies (TWAs). TWAs are loosely regulated by Indian law, but temporary contract employees are protected under The Contract Labour (Regulation and Abolition) Act of 1970. Specifically, the Act regulates: Non-seasonal establishments that employ twenty or more workers as contract labor TWAs who employed or have employed twenty or more workers on any day of the preceding twelve months Temporary agency workers are not required to receive the same statutory benefits as regular employees. However, the Contract Labour Act empowers courts to determine when an employer has misclassified an employee as a TWA worker by examining the worker's length of service, among other factors.

Probationary Period

India has provisions for 6 months' probationary period for hiring permanent employees. This period can be further extended by up to 3 months. If a permanent employee is employed as a probationer in a new post, they can be reverted to their old permanent post at any time during the probationary period of 6 months. An employment contract can be terminated without notice in probation.

Working Hours

A normal working day is 8 hours for employees on a daily wage period. Employers may set the normal working day as they choose for employees on any other wage period, provided the total weekly hours do not exceed 48 hours. Under the Occupational Safety, Health and Working Conditions Act 2020 of India, no employee of a covered establishment can be required or allowed to work in any establishment for more than 8 hours a day or 6 days a week. Children aged 14 up to 18 years cannot be employed for more than 6 hours a day and no more than 3 hours without a break. The periods of hours of work for all categories of workers must be exhibited on the notice board of the industrial establishment. If an employer engages in a commercial activity, the regional shops and establishments statutes govern the applicable regulations. As per the August 29, 2025, amendment to the Punjab Shops and Commercial Establishments Act, the standard working hours are increased to 10 hours a day, with a maximum of 12 hours a day, limited to 48 hours per week, for establishments with at least 20 employees. Overtime hours have been increased to 144 per quarter. Employers with more than 20 employees must register with the Labour Inspector within 6 months of starting business, and also within 1 month of closing the business. Effective October 1, 2025, the Maharashtra government has permitted all shops and commercial establishments to operate 7 days a week, except those servicing alcohol. All employees must be given at least a continuous 24-hour rest period a week. On March 11, 2026, the Delhi government issued changes to the Delhi Shops and Establishments Act (1954) applicable to employers with 20 or more employees, which will go into effect upon the Minister issuing a Gazette Notification. Under the amendments, the maximum working time is 10 hours per day (including rest and lunch breaks) and 60 hours per week, with an overtime cap of 144 hours per quarter. The continuous working period increased to 6 hours before employees must be provided with a break. The maximum spread-over period, including rest breaks, will be limited to 12 hours.

Holidays / PTO

• Statutory Holidays

2026

January 26 - Republic Day
March 4 - Holi
March 21 - Ramzan Id (Provisional)
March 26 - Rama Navami
March 31 - Mahavir Jayanti
April 3 - Good Friday
April 14 - Ambedkar Jayanti
May 1 - Buddha Purnima
May 27 - Bakrid (Provisional)
June 26 - Muharram/Ashura (Provisional)
August 15 - Independence Day
August 26 - Milad un-Nabi (Provisional)
September 4 - Janmashtami
October 2 - Mahatma Gandhi Jayanti
October 20 - Dussehra
November 8 - Diwali/Deepavali
November 24 - Guru Nanak Jayanti
December 25 - Christmas

2027

January 26 - Republic Day
March 6 - Maha Shivaratri/Shivaratri
March 10 - Ramzan Id (Provisional)
March 22 - Holi
March 26 - Good Friday
April 15 - Rama Navami
April 18 - Mahavir Jayanti (provisional forecast)
May 17 - Bakrid (Provisional)
May 20 - Buddha Purnima (provisional forecast)
June 16 - Muharram/Ashura (Provisional)
August 15 - Milad un-Nabi (provisional forecast)
August 15 - Independence Day
August 25 - Janmashtami
October 2 - Mahatma Gandhi Jayanti
October 9 - Dussehra
October 29 - Diwali/Deepavali
November 14 - Guru Nanak Jayanti (provisional forecast)
December 25 - Christmas

• Paid Annual Leave

Employees are entitled to paid annual leave at the rate of one leave per 20 days of work if they have worked for at least 180 days in a year. For employees between 14 and 18 years, annual leave is calculated as 1 day of leave per 15 days of work. Up to 30 days of annual leave may be carried over to the next year. If the employment contract expires before a worker can take annual leave, compensation for leave is made in proportion to the number of months and the number of hours worked in a week.

• Sick Leave

India does not have a national statutory entitlement for employee sick leave. Under the Apprentices Act, apprentices are entitled to sick leave as decided by the organization with whom they are training. Employers involved in commercial activities are advised to refer to their local shops and establishments statutes, which may or may not grant employees the right to sick leave. Since nearly everyone needs such time off occasionally, all organizations are expected to have a clear, established policy regarding sick leave and personal days.

• Maternity Leave

Under the Social Security Code, eligible female employees with fewer than 2 surviving children are entitled to a maximum of 26 weeks of maternity leave, which can commence up to 8 weeks before the expected date of delivery. Female employees with 2 or more surviving children are entitled to 12 weeks of maternity leave, which can commence up to 6 weeks before the expected date of delivery. To be eligible, female employees must have actually worked at least 80 days in the 12 months immediately preceding the date of expected delivery. Days for which the employee has been laid off or was on statutory holidays with pay are taken into account when calculating the actual days worked. Female employees are entitled to a maternity benefit at the rate of the average daily wage of the payments she received during the period of 3 calendar months immediately preceding the date from which she takes maternity leave. The maternity leave rate is subject to the minimum wage rate as specified in the Code on Wages. Employers are prohibited from employing women during the 6 weeks following the day of delivery or miscarriage. Female employees are exempt from tasks that require strenuous effort or are physically demanding and exhausting, or that require standing for long periods or may in any way interfere with the pregnancy, the normal development of the fetus, or pose a risk of miscarriage or other harm to her health for the following periods: 1 month preceding the period of 6 weeks before the expected delivery day; and any part during those 6 weeks for which the pregnant woman has not taken maternity leave A female employee who legally adopts a child under 3 months or a commissioning mother is eligible for maternity leave of 12 weeks from the date the child is handed over. A commissioning mother is defined as a "biological mother who uses her egg to create an embryo implanted in any other woman."

• Paternity Leave

While there is no statutory minimum paternity leave for private-sector workers, the law allows male government employees to take up to 15 days of leave if they have fewer than 2 surviving children. Employees can take this leave once the baby is born or within 6 months of the delivery.

Termination of Employment

• Notice Period

Employees who have worked continuously for at least 1 year with the same employer must be given at least 1 month's notice before retrenchment or the termination of a permanent employee. The duration of the notice period depends on the number of employees in the establishment and the reason for termination: Establishments with at least 50 employees – 1 month Closure of establishment with at least 50 employees – 60 days Establishments with at least 300 employees – 3 months

• Severance Benefits

Employees who have worked for at least 1 year are entitled to severance pay equal to 15 days' wages for each year of work or any part exceeding 6 months when their employers dismiss them with valid reason. No compensation is paid to employees who refuse to accept any alternative employment offered by their employers or are dismissed due to disciplinary action. Employees dismissed due to transfer or closure of establishment due to unavoidable reasons are also entitled to severance pay, provided their severance pay does not exceed 3 months' wages. Employees who leave a job after having rendered 5 continuous years of service are entitled to gratuity payment at 15 days' pay for each completed year of continuous service or any part exceeding 6 months. There is a ceiling of INR 2,000,000 (Indian rupees) when calculating severance payments.