How Can a Foreigner Register a Company in India?
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Why Expand Your Business to India?
India’s thriving economy, massive 1.4 billion consumer base, and investor-friendly policies make it a prime destination for global businesses. Whether you’re looking to establish a tech team, sell products, or offer services, India provides several advantages:
- 100% Foreign Direct Investment (FDI) in key sectors like IT and manufacturing without prior approvals.
- Cost-Effective Skilled Workforce in technology, engineering, and finance.
- Tax Incentives for startups and export-oriented businesses.
Business Structures for Foreign Companies in India
1. Private Limited Company (PLC) – Wholly Owned Subsidiary (WOS)
A private limited company (PLC) is the preferred business structure for foreign investors, allowing complete ownership under the automatic FDI route in most sectors.
Features:
- Ownership: Up to 100% foreign equity permitted.
- Liability: Limited liability for shareholders.
- Compliance: Minimum two directors (one must be an Indian resident for at least 182 days per year).
- Suitability: Ideal for businesses seeking full operational control, scalability, and market credibility.
- Profit Repatriation: Allowed after taxes.
- Tax Efficiency: Corporate tax at 25% for turnover below ₹400 crore.
2. Branch Office (BO
A branch office functions as an extension of the foreign parent company but has restricted operational scope.
Features:
- Activities Allowed: Limited to consulting, R&D, and export/import. Cannot engage in direct sales or manufacturing.
- Ownership: Fully owned by the parent company.
- Liability: The parent company bears unlimited liability.
- Suitability: Best for companies exploring the Indian market before full-scale entry.
- Profit Repatriation: Permitted after tax deductions
3. Liaison Office (LO)
A Liaison Office is a non-commercial entity that serves as a communication bridge between the foreign parent company and Indian stakeholders.
Features:
- Activities Allowed: Market research, business promotion, and networking (no revenue generation allowed).
- Ownership: Fully owned by the foreign entity.
- Compliance: Requires RBI approval, initially granted for three years.
- Suitability: Ideal for feasibility studies before full market entry.
- Low Cost: Minimal operational expenses.
Choosing the Right Business Structure
| Criteria | Private Limited/WOS | Branch Office | Liaison Office |
|---|---|---|---|
|
Ownership |
Up to 100% FDI |
100% foreign-owned |
100% foreign-owned |
|
Liability |
Limited |
Unlimited (parent company) |
Unlimited (parent company) |
|
Commercial Activities |
Allowed (e.g., sales, hiring) |
Restricted to specific purposes |
Not allowed |
|
RBI Approval |
Not required |
Required |
Required |
|
Compliance |
Moderate to high |
Moderate |
Low |
Why a Private Limited Company (WOS) Is the Best Option
Most foreign businesses choose a Private Limited Company because it provides:
- Complete operational control and market access.
- Easy profit repatriation.
- Higher credibility with Indian customers and stakeholders.
Why a Private Limited Company (WOS) Is the Best Option
Foreign subsidiaries in India are treated as domestic entities and must comply with local laws, including tax regulations and mandatory filings with the MCA. GST registration is required if the business engages in taxable transactions
Step-by-Step Process to Register a Company in India
Setting up a business in India involves regulatory compliance under the Companies Act and FEMA. Our expert team ensures a smooth online registration process.
- Select Your Business Structure – A Private Limited Company (WOS) offers the most flexibility and scalability.
- Obtain Digital Signatures (DSC) – Required for e-filing company registration documents.
- Apply for Director Identification Number (DIN) – Mandatory for all directors.
- Reserve a Unique Company Name – Conduct a name check via the MCA’s RUN service.
- Draft Legal Documents:
- Memorandum of Association (MoA) – Defines business objectives.
- Articles of Association (AoA) – Governs internal management rules.
- File Incorporation Application (SPICe+) – Submit an online application to the Registrar of Companies (RoC).
- Pay Fees & Stamp Duty – Based on the company’s authorized capital.
- Receive Certificate of Incorporation (COI) – Official approval of company registration.
- Open a Corporate Bank Account – We assist in preparing the required documents, including notarized foreign papers.
- Post-Incorporation Compliance – GST registration, tax filings, and financial reporting.
Resident Director Services – Ensuring Compliance
Foreign-owned companies must appoint an Indian Resident Director to meet legal requirements. Our services include:
- Nominee Director Services – Appoint a resident director without operational authority.
- Undated Resignation Letter – Retain full control over the directorship.
Ongoing Compliance Support – Assistance with annual filings and audits
Simplified Corporate Bank Account Opening in India
Opening a business bank account can take 2–3 weeks due to due diligence checks. We simplify the process by:
- Preparing required documents (COI, MoA, AoA, board resolutions).
- Recommending international banks (e.g., HSBC, DBS) for easier processing.
- Assisting with AML letters, POAs, and wet-ink signature requirements.
Taxation & Compliance for Foreign Companies in India
- Corporate Tax: 25% for companies with turnover under ₹400 crore; 30% for higher turnover.
- GST Registration: Mandatory for businesses exceeding the ₹40 lakh threshold.
- Dividend Repatriation: Subject to a 20.55% tax.
- Annual Compliance: Includes statutory audits, tax filings, and RBI reports (e.g., FC-GPR).
Why Choose Us?
- End-to-End Online Setup – Hassle-free company registration.
- Resident Director Services – Stay compliant without operational risks.
- Post-Incorporation Support – Tax, payroll, and regulatory filings managed by experts.
For expert guidance on company incorporation and regulatory compliance, consult .com today RMCAuditors is here to help! Text us on whatsApp or call us today .
FAQs – Foreign Company Registration in India
Yes, foreigners can establish a Private Limited Company, LLP, Branch Office, Liaison Office, or Project Office depending on their business needs.
Yes, a registered office address is required for company incorporation.
Foreign nationals must provide passport copies, proof of residence, and notarized documents.
Yes, in most sectors, foreign companies can hold 100% ownership without prior RBI approval.
No, the entire registration process can be completed online with digital signatures.
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