How NRIs can set up a business in India?
Currently, foreign investment into India is at an all time high. Thus it is unsurprising that NRIs too want to get in on the action. Currently, there are no restrictions either for foreigners or for NRIs to incorporate a business in India. Prior to FEMA, when the regulatory act was the Foreign Exchange Regulation Act (FERA), NRIs were not allowed to incorporate/subscribe to Indian companies without permission from the Reserve Bank. However, with the repeal of FERA, such restrictions have been abolished.
What type of entity should an NRI set up?
Currently, foreign investment in partnerships, proprietorships and one person companies are not allowed in India. In the case of Limited Liability Partnerships, foreign investment is allowed only with prior approval of the Reserve Bank of India. However, in the case of private limited companies, foreign investment is allowed freely. Hence this is the most convenient entity that an NRI should look to set up business in India.
Documentation for Indian Company Registration by Foreigners
Four front-facing colour photographs of directors/shareholders
Copy of Passport of each director and address proof of each director/shareholder
Pan Card, Address Proof and Photo of one resident director in India.
Proof of the registered address of Company (Sale Deed, electricity bill, tax paid receipt or any other utility bill)
No objection Certificate from the owner of premises where registered office of the company shall be situated
Virtual offices or shared workplaces do not qualify to be registered address
In case the document is in foreign language, then a certified translation thereof must be filed.
Turn Key Solutions for Foreign Company Registrations
- Consultation with FDI Specialist
- DSC and DIN for Two Director
- Name Approval of Company
- Company Incorporation Certificate
- PAN Card & Tan from Income Tax Department
- Bank Account Opening support
- Share Certificate Franking
- GST Registration
- Shops & Establishment Registration
- Professional Tax Registration
- FDI Reporting to Reserve Bank of India
- Registration of Foreign Director with FRO
- Guidance on Business or Employment Visa