Foreign Company Registration in India

Foreign Company Registration in India

Today, India is viewed as one of the major economic powers in the world. Despite still being in development, India's economy has a sizable impact on global trade. 

The vast majority of the world's most industrialized nations are eager to develop ties with India. 

India is preferred by investors over other large nations, whether they be in other parts of the world, because of its sizable market and the fast-changing consumption patterns of its middle-class population.

Starting a business in India has several advantages for foreigners, from the young people who are career-focused to the abundance of experienced professionals, support from the government to business-friendly rules, and enticing foreign policies. Let's examine the benefits of foreign company registration in India.

Benefits Of Foreign Company Registration In India

1. Convenient Entrance

Contrary to other business structures, a private company can enter the Indian market with ease. Aside from the liberal norms, the company setup is trouble-free. With online processes and one-window processing, the incorporation process and post-registration steps have been made simpler.

2. India-Based Permanent Establishment

Foreign nationals or corporations create a permanent place of business and a legal entity in India by forming a subsidiary there. In India, a company's legal identity is distinct from that of its shareholders and promoters.

3. Operations Under Strategic Control

Despite being a foreigner, this structure aids the promoters in exercising strategic control over the operations and activities. Foreign entities gain from indirect control and supervision when there is at least one resident director from India.

4. Expansion With Minimal Risk

The expansion of the firm is the ultimate purpose of opening a branch abroad. A further benefit when it comes to entering the brand-new market is limited liability. With this structure, you both reduce the brand's value globally and secure your liabilities.

5. Both Expert And Unskilled Labour Is Readily Available.

Compared to Western nations that can do quality work at a very low cost, India has the biggest number of engineers, management graduates, and other qualified and unskilled workers who are available at extremely affordable prices.

6. Government Programs And Policies

The Indian government has launched numerous initiatives to make doing business in India easier and to entice more and more businesses to establish operations there and invest there. Make in India Scheme, Production Lined Incentive Scheme, One Window Clearance for Different Approvals Required for Setting Up Fabrices in India, Startup India Scheme, etc., are some of the efforts. This has encouraged an increasing number of foreign enterprises to establish operations in India.

Different Ways Foreign companies can Set Up in India

1. Joint Endeavour

A foreign corporation will select a local partner in India to form a joint venture to run its business. A Letter of Intent or Memorandum of Understanding (MOU) is signed by the foreign business and the local partner outlining the terms of the joint venture agreement. The joint venture agreement contains all of the commercial provisions, which must be in accordance with national and international legislation.

2. Associated Office

For any liaison-related activities in India, a foreign corporation may open a liaison office. The parent firm (a foreign corporation) will fund all liaison office costs using foreign remittances.

3. Sectional Office

In India, a foreign business may open a branch office. To open a branch office, a big worldwide firm that can demonstrate profitability is required.

4. 100 Percent-Owned Subsidiary

A foreign individual or business can invest 100% FDI in an Indian company using the automatic procedure in order to register as a foreign entity in India. The Indian company will become a wholly-owned subsidiary of the foreign entity/business when it makes a 100% FDI investment in it.

A foreign corporation may establish a liaison office, project office, or branch office in India to conduct business. The RBI or the government, however, must approve the establishment of these offices.

Required Documents for Foreign Company Registration in India

Documents needed for NRIs and foreign nationals to register a foreign company in India as directors or shareholders

  1. A Single Image
  2. A Passport Photocopy
  3. Driving license or voter ID as proof of address; bank statement; phone or landline telephone bill; business visa; and proof of stay in India.

NOTE: The Competent Authority of the foreign national must apostille/consumerize each of the aforementioned documents in addition to having them notarized by a Public Notary.

For Company Address :

  1. Sale Deed/Rental Agreement as Proof of Registered Address
  2. Copy of a recent utility bill, such as one for gas, electricity, or a landline phone.
  3. If necessary, a No Objection Certificate for the usage of the property

Indian Subsidiary Business Registration Procedures

For a subsidiary company to be registered in India, a minimum of 2 directors and 2 shareholders are needed, of which at least 1 must be Indian citizens. 

There could be any number of foreign shareholders or directors. Investors might be either companies or individuals. 

All directors' digital signatures have been prepared to start. A name approval form is then submitted to the Registrar of Companies (ROC). 

Two or three names are sent to ROC, and ROC can choose to approve any one of them at their discretion. 

The third phase involves creating the Memorandum and Articles of Association, Director Identification Number, and other documents needed to fill out the online ROC form and submit an application for final incorporation.

The Certificate of Incorporation [COI] is eventually obtained. After obtaining a COI, a bank account must be opened. 

Then, all shareholders, including foreign shareholders, deposit the share subscription funds into bank accounts.

The receipt of FDI from a foreign company or foreign citizen must be reported to the Reserve Bank of India, the Indian central bank responsible for overseeing foreign exchange. Certificate of Commencement of Business is applied with ROC/MCA once the whole amount of share subscription money has been received in the Indian bank account.

It should be noted that if the funds for a share subscription are coming from a nation with which India shares borders, FIFP approval must first be obtained before the funds may be deposited into an Indian bank account.

Step By Step Application Process For Foreign Company Registration

  1. Two directors are required to apply for a Digital Signature Certificate (DSC) before the incorporation procedure can begin, and each additional director must apply for a Director Identification Number (DIN).
  2. The applicant must submit Form INC-1 to request the firm name.
  3. Before incorporating, the company should request government approval for its name based on the following criteria.
  4. By including the word "India" in its name, the company can utilize the same name as its parent corporation.
  5. If the parent or foreign firm has a trademark that has been granted, the Indian subsidiary company may utilize it.
  6.  Upon logging in, select "RUN" from the list of MCA services under the Ministry of Corporate Affairs (MCA) portal. The completion of a new online form will be generated for applicants. Specifics to include in the form:
  7. Entity class
  8. Identifier for a corporation (CIN)
  9. suggested name
  10. a document such as a NOC, a trademark document, or an apostille copy of a foreign company's resolution.
  11. The applicant must submit Form INC-7 (Application for Incorporation of firm) once the proposed name of the firm has been approved by the Register of Companies (ROC).
  12. Details of Directors and Key Personnel Staff Appointment Form DIR-12
  13. Form INC-22 (together with the company's MOA and AOA)
  14. The applicant is required to pay the electronic ROC fees and Stamp duty after the incorporation papers have been submitted.
  15. After the fee has been paid, ROC reviews the paperwork that was submitted. The Straight-Through-Process (STP) accepts Form INC-22 and DIR-12.
  16. Once the applicant's ROC is certified, the incorporation certificate is sent.

Also check,

Private Limited Company

Public Limited Company

One Person Company


Given India's breadth and variety, the process of registering a foreign corporation there might be difficult. 

That's where XYZ, with its expertise in both foreign company registration and post-registration business success, can help.

One of the top consultation and setup service providers in India for market entry, company formation, and international company registration is XYZ. 

They have the know-how, the experience, and the people to deliver, whether it's guidance on India's business strategy, on-the-ground company formation, or steps for foreign company registration in India.

FAQ’s related to Benefits of Foreign Company Registration in India

1. Is it necessary for the documents to be apostilled or notarized in the nation of origin if the foreign signatories arrive in India on a non-business visa and sign them there?

In the absence of a business visa, the documents must be apostilled and notarized in the place of origin because the foreign subscriber is physically present in India, and the documents were signed there.

2. How many digital signatures are necessary for the incorporation of a WOS or subsidiary of a foreign company?

There is only a single digital signature required. There is no need to tie the DSC to the MOA / AOA subscriber sheet because the DSC is only attached to the "INC-32" kind of SPICE, and a physical MOA / AOA is used for business formation.

3. What conditions prevent documents from overseas subscribers from being apostilled?

If overseas subscribers arrive in India on a "Business Visa," as per Rule 13(5), then the documents do not need to be apostilled.

4. Does a public notary in the country of origin need to legalize and notarize the ID proof for foreign subscribers?

If the recognized foreign company representative or foreign company nominee is not an Indian citizen, their ID must be apostilled in their place of origin.

5. Why can't international businesses create a subsidiary or WOS in India using an e-MOA or e-AOA?

Due to Rule 13(5) of the Company (Incorporation) Rules, 2014, an e-MOA and an AOA signed by a person residing outside of India must be apostilled or notarized by the country of origin's notary and, therefore, cannot be used by foreign companies.

Contact Us for Company Secretary Services, Trademark Registration Online, Service Tax Registration,  GST Registration OnlineAccounting Service For Startups , ESOP Services  in Delhi, Noida, Gurgaon, and all across India: write to us at Or Call On :(+91)-9711021268 +91-9310165114

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