Non-Resident Individuals and Business Incorporated outside India are permitted to start a business in India subject to provisions of Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) Regulations.
100% customers satisfaction guaranteed. No hidden charges
Updated on
A Non-Indian National / Business incorporated outside India has the following options to setup up a new business in India:
A. LIMITED COMPANY
A non-resident Indians and businesses incorporated outside India can incorporate Company in India a under the Companies Act, 2013, as a Joint Venture (JV) or a Wholly Owned Subsidiary.
Foreign Direct Investment (FDI) is freely permitted in Limited Companies subject to the FDI Policy in almost all sectors. Under the FDI Scheme, non-residents can make investments in shares/convertible debentures/preference shares issued by an Indian company through two routes:
B. LIMITED LIABILITY PARTNERSHIP (LLP)
An LLP is an incorporated business form that combines the features of partnership and the company form of business. The LLP form of organization was introduced in India in April 2009 through the Limited Liability Partnership Act, 2008.
Foreign Direct Investment (FDI) is freely permitted in Limited Liability Partnership subject to the FDI Policy in almost all sectors.
C.BRANCH OFFICE / LIAISON OFFICE /PROJECT OFFICE
Business entities registered outside India (Foreign Company) can establish business operations in India without creating and registering a subsidiary company.
Subject to the RBI guidelines, a foreign company can open a Branch Office or Liaison Office in India. The scope of operations of such offices is typically limited to activities and functions such as country representative office, sourcing, technical and/or marketing support, import and export, etc.
A Foreign National or a Business Registered outside India has to define the India Business Plan first. Depends on the business operations Plan, one has to select the best suited Business entity option start business in India.
Choose best suited business from different options such as Limited Company, Limited Liability Partnership (LLP), Branch Office & Liaison Office or Project Office etc.
Depends on the chosen Business option, the documentation process will also differ. Generally, any document executed outside India or a copy of document produced from outside India must be notarized and apostatized or attested by the Indian Embassy in their respective countries as per Hague Convention guidelines.
Again, depends on the chosen Business option, the application process shall also differ. In case of Limited Companies and Limited Liability partnerships, application is required to be filed with the Registrar of Companies (ROC), Ministry of Corporate Affairs. In case of Branch office / Liaison Office the application is required to be filed with the Reserve Bank of India and after obtaining the approval from the RBI, the entity is required to be registered with Registrar of Companies (ROC) Delhi, Ministry of Corporate Affairs
After obtaining the Business entity registration, the business can proceed to open bank account and proceed to appoint people and start business. Also, the busies is required to obtain other required registrations such as Goods and Service Tax Registration (GST), Professional Tax and Shops and Establishment Registration etc and start employing people
If a Foreign Company is a Shareholder/ partner, the business Incorporation documents such as Certificate of Registration and Charter Documents with
For Company and LLP registration, the following documents are required from proposed Shareholders / Partners and Directors / Designated Partners
The following documents are required on case to case basis:
Shareholder, Nominee Shareholder and Director(s) have to submit Identity Proof and Latest address proof
Acceptable Documents
Shareholder to sign the folliwing documents: