Complete step-by-step guide on how to start a business in India as a foreigner. Learn about business structures, registration process, FDI policies, compliance requirements, and get expert assistance for your Indian business setup.
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Follow these steps to successfully start your business in India as a foreigner
Decide on the right business structure: Private Limited Company (100% FDI), Branch Office, Liaison Office, or Joint Venture. Consider factors like control, liability, and compliance requirements.
Verify if your sector allows 100% FDI under automatic route or requires government approval. Most sectors allow 100% FDI without prior approval.
Get DSC for all directors. This is required for filing documents with MCA. Foreign directors can obtain DSC from authorized agencies.
Apply for DIN for all directors. Foreign directors need to provide passport copy and address proof. DIN is mandatory for company directors.
File name reservation application with MCA. Choose a unique name that complies with naming guidelines. Name approval typically takes 1-2 days.
Prepare Memorandum of Association (MOA), Articles of Association (AOA), and other required documents. Get documents notarized and apostilled if required.
File SPICe+ form (INC-32) with MCA along with required documents. This includes MOA, AOA, and other statutory declarations.
Receive Certificate of Incorporation from ROC. This typically takes 7-10 working days after filing. Company is legally formed upon receiving this certificate.
Apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN). These are automatically issued during incorporation process.
Open corporate bank account with an Indian bank. Provide incorporation certificate, PAN, and other KYC documents. Some banks may require physical presence.
Register for Goods and Services Tax (GST) if your business requires it. GST registration is mandatory for businesses with turnover above threshold.
File Foreign Currency-Gross Provisional Return (FC-GPR) with RBI within 30 days of share issuance. This is mandatory for foreign investments.
100% foreign ownership allowed in most sectors. Separate legal entity with limited liability. Most popular choice for foreign investors.
Learn More →Extension of foreign company. Can engage in export/import, R&D, consultancy. Requires RBI approval. Not a separate legal entity.
Learn More →Representative office for market research and promotion. Cannot conduct commercial activities. Requires RBI approval.
Learn More →Temporary office for specific projects. Typically for infrastructure and construction. Can be closed after project completion.
Learn More →Hybrid structure combining partnership and company features. Suitable for professional services. Requires at least one Indian partner.
Learn More →Partnership with Indian company. Can be structured as company or partnership. Allows local market knowledge and shared risk.
Learn More →Yes, foreigners can start businesses in India through various structures including private limited companies (100% FDI in most sectors), branch offices, liaison offices, or joint ventures. The process depends on the business structure and sector.
Foreigners can choose from: Private Limited Company (100% FDI allowed in most sectors), Public Limited Company, Limited Liability Partnership (LLP), Branch Office, Liaison Office, Project Office, or Joint Venture with Indian partners.
For private limited companies, most sectors allow 100% FDI under the automatic route without prior RBI approval. However, branch offices, liaison offices, and project offices require RBI approval. Post-investment reporting to RBI is mandatory.
Required documents include: Passport copy, address proof, parent company incorporation certificate (if applicable), board resolution, financial statements, KYC documents, and other documents as specified for the chosen business structure.
A private limited company can be incorporated in 15-20 working days. Branch offices and liaison offices require RBI approval (4-6 weeks). The total time depends on document preparation, approvals, and bank account opening.
There is no minimum capital requirement for private limited companies. However, the company must have a minimum paid-up capital of ₹1 lakh (though this need not be deposited upfront). The actual capital depends on business requirements.
Yes, a private limited company in India requires at least one director who is a resident of India (stayed in India for at least 182 days in the previous calendar year). This is mandatory under the Companies Act, 2013.
Foreign subsidiaries are taxed as Indian companies (25-30% corporate tax). Branch offices are taxed at 40% plus surcharge. Companies must also comply with GST, TDS, and other tax obligations. DTAA benefits may apply based on the country of origin.
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