Business Incorporation in India for Foreign Companies, Foreign Nationals & Non-Resident Indians (NRIs)
Company Registration takes a maximum of 3 weeks & You don't need to visit India
Best Company Structure for Non-Resident Indians
It is considered that Private Limited Company Registration is ideal for NRIs, foreign nationals, and for foreign entities who want to set up a business in India.
As per the guidelines of FEMA, FDI is not permitted in a proprietorship, partnership firm, or one-person company. However, according to the latest guidelines, FDI shall be permitted under the automatic route in those LLPs that are operating in sectors where 100% FDI is allowed under the automatic route and where there are no FDI-linked performance conditions.
The shares of an Indian Company can be held by a NRI, Foreign National, or Foreign Company subject to FDI norms. Incorporation of a Private Limited Company is thus recommended for foreign nationals as it's the fastest and easiest way to enter into the Indian Market.
What type of Company can be incorporated by foreign nationals or NRI’s in India?
Foreign national or NRI can incorporate private limited companies, public limited companies or Limited Liability Partnership (LLP) in India.
As per the FDI and FEMA provisions, in India, the most appropriate form of business entity that can be incorporated by foreign nationals and the NRI is a private limited or public limited company as 100% FDI is allowed under the automatic route for most of the business sectors.
What are the requirements for incorporation of a Private or Public Limited Company
Director: To incorporate a company in India, there has to be at least a minimum number of two directors required in the case of a private limited company, and for a public limited company, there should be a minimum number of three directors. Further, at least one director must be an Indian citizen and also an Indian Resident. A person who has stayed in India for more than 186 days is known to be an Indian Resident.
Registered Office Address: The proposed company is required to have the address of the office in India before starting the incorporation process. The proof of the registered office address, such as the sale deed or a rental agreement, is to be filed while filing the incorporation application. In the case of a leased or rented property, NOC from the owner of the rented or leased premises shall be submitted regarding the use of the premises as a registered office.
The documents required by foreign nationals
Resident permit
Passport
Business visa
Bank statement or any utility bill not older than two months
All the above said documents must be attested by the Consulate of the Foreign Embassy in India.
The documents required by NRIs for incorporating a company in India, are as follows:
Proof of identity
PAN Card
Aadhaar card, driving license, voter ID any
Current address proof such as a copy of driving license bank statement, or any utility bill in the country of residence not older than two months.
Such proof of present address shall be attested by a Public Notary in the country of residence and apostilled by the Indian Embassy in the foreign country
Foreign Company Registration Process in India
Step 1: Reservation of Company Name: The proposed name for the Company is available. In the case of a Subsidiary Company, it may have a name identical to that of the foreign Company but with the word "India" added to it. It must not be identical or even resemble such existing entities in India and should not be undesirable within the meaning of section 20 of the Companies Act, 2013.
Step 2. Obtaining DSC: A DSC for the proposed directors of the Company should be procured concurrently. A DSC is required to be obtained for digitally filing the Incorporation application and will also be used in compliance reporting that will subsequently take place.
Step 3. Incorporation Application: This is the final step towards foreign company incorporation in India. It basically requires filing of the Memorandum and Articles of Association of the Company along with various other documents duly executed by the proposed directors and shareholders to the Ministry of Corporate Affairs.
Incorporation documents to be executed:
- Articles of Association
- Memorandum of Association
- Declaration by Directors in form DIR 2
- Declaration of Directors/Shareholders and Authorized Representative in Form INC 9
- PAN Undertaking from foreign companies and directors
Documents are required for Foreign Nationals.
- If the documents are executed outside India, then the same has to be notarized by a Public notary of the residence country and apostilled by the competent authority, as the case may be.
- In case the documents are signed in India, then a copy of the Visa and stamped passport proving his/her presence in India at the time of signing is required.
- If the subscriber is a foreign entity, the Incorporation documents should be signed on behalf of the foreign entity by the said representative. The authorization letter, as stated above, naming the name of the Authorized Person and no. of shares subscribed must be notarized, consularized, or apostilled, whichever the case may be, in the country of the subscriber company.
Benefits of Foreign Company Registration in India
- Access to a Large Market
- Favourable Investment Policies
- Strategic Location
- Cost-Effective Operations
- Tax Incentives and Benefits
- Legal Protection and Intellectual Property Rights
- Government Support and Initiatives
- Growing Digital Infrastructure
- Potential for Strategic Partnerships
- Cultural Diversity and Adaptability
