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How to do Foreign Company Registration in India?

How to do Foreign Company Registration in India?

Nobody would have ever imagined that they could register a foreign company in India say a decade back? Many NRIs and companies would have dreamt big off setting up a company in India. But unfortunately, their dreams would not have turned into a reality as the situation was not that congenial due to many restrictions imposed by the Government. Those days were the thing of the past.  

Today, the scenario is totally different than what it was before. India is known to be one of the fastest growing economies in the world in recent times. The factors responsible for this dynamic growth being healthy resources and a large market base. In the past few years due to the changed regulatory environment, there has been a huge boost in foreign direct investment (FDI). Hence setting up a business for NRIs have become a hassle-free process.

Globalization has paved way for creating ample opportunities not only for Indians but also to foreign citizens. This, in turn, has encouraged several investors to invest their money in India.

Can a foreign company set up its business in India?

“YES” definitely a foreign company can set up their business in India provided they follow all the rules and the regulations listed in the Companies Act of 1956.

What is the process to be followed for a foreign company to establish their business in India?

For a foreign company to register in India, they need to follow certain norms and guidelines specified in the Company’s Act of 2013. A company of foreign nature can enter the Indian market and can commence its business operations by adopting the following methods.

As an Indian company:

  • Wholly Owned Subsidiary
  • Joint Venture

As a foreign company:

  • Setting up of a Liaison Office
  • Setting up a Project office or Representative office
  • To open a branch office of the foreign company

What are the documents to be produced for the purpose of registering a foreign company in India?

Following are the documents to be provided at the time of registering a foreign company in India.

For Indian citizen

  • Proof of address of the office
  • A copy of the latest electricity bill if the accommodation is on the rental basis, Sale Deed or any tax paid receipt
  • No Objection Certificate (NOC) from the owner of the premises where the registered office of the company shall be situated.

For Foreign citizens

  • Proof of address
  • PAN card is mandatory
  • Photo ID proof containing  the name, photo and the date of birth
  • Documents submitted have to be approved or certified by the Indian Consulate.

What are the procedures for establishing a foreign company in India?

For a foreign company to get established in India has to mandatorily go through the following procedures.

  • A minimum of two shareholders and directors are required
  • Directors’ planning to establish a foreign company in India has to apply for DIN (Director Identification Number) along with the digital signature certificate.
  • Application with the name of the company has to be filed in Form INC-1
  • One has to draft the Memorandum of Association (MOA) and Articles of Association (AOA). Moreover, a subscription to Memorandum of Association has to be undertaken by the shareholder and appropriate persons.
  • After getting the necessary approvals from the registrar of company, the applicant has to file form INC-7 (Application for Incorporation of Company), form DIR-12 (particulars about appointment of directors) and form INC-22 (location notice or change of address of the registered office of the company) along with Memorandum of Association and Articles of Association.
  • As per the authorized capital of the company pay the ROC fees online along with the stamp duty charges as applicable.
  • All the documents and forms like Form INC-22, DIR-12 and INC-7 are verified by the registrar thoroughly in all aspects.
  • A certificate of incorporation is sent once the registrar is fully satisfied with all the forms submitted.
  • After getting the certificate of incorporation one has to apply for the PAN card for the purpose of opening a bank account with the company.
  • Capital documents have to be submitted after the subscription of share for Foreign Direct Investment (FDI) compliance.

Are there any restrictions for NRIs to set up a business in India?

Currently, there are no restrictions either for foreigners or NRI’s to start a business in India. With Foreign Direct Investment (FDI) gaining popularity and getting a much-needed boost from the Government many MRI’s are keenly looking forward to invest in India. Earlier NRI’s were not allowed to start or incorporate a business in India without the permission from the Reserve Bank of India (RBI). With the withdrawal of Foreign Exchange Regulation Act (FERA), such restrictions have been lifted.  

Who are eligible to start a foreign company in India?

Currently, foreign investment in partnerships, proprietorships, and one person companies are not eligible in India. However, in case of Limited Liability Partnerships, foreign investment can only take place only with the prior approval from the Reserve Bank of India. There are no restrictions for foreign investments in case of private limited companies.

What is the scope and what’s in store for the NRI’s and others to establish a foreign company in India?

The future looks to be very bright and promising to register a foreign company in India. With the Government totally supporting the Foreign Direct Investment (FDI) and abolishing of the FERA has made things far easier for many NRIs and others to register a foreign company in India.

Aavana Corporate Solutions one of the frontrunners in providing services in company registration and other related services including foreign company registration in India are here to assist you in every possible way. If you are an NRI or planning to establish a foreign company registration in India, kindly get in touch with Aavana. For all your related queries contact us at

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