Are you a foreign company/business looking to expand into the Indian market? Registering a company in India is the first step toward establishing a legally recognized entity and accessing one of the world’s fastest-growing economies.
This guide covers everything you need to know about the process, key requirements, and compliance obligations for foreign investors looking for company registration in India.
Why Register a Company in India?
Registering a company in India offers numerous benefits:
- Legal Recognition:Your business operates as a separate legal entity.
- Limited Liability Protection:Shareholders’ liability is limited to their investment.
- Access to the Indian Market:Benefit from India’s large consumer base and skilled workforce.
- Tax Benefits:Avail of various deductions and exemptions available to registered entities.
- Investment Opportunities:A registered company enhances credibility and attracts investors.
- Ease of Business Operations:Banks and financial institutions prefer lending to registered companies.
Types of Business Structures in India
Foreign businesses can choose from the following types of company structures:
- Private Limited Company (Pvt. Ltd.)– Preferred for startups and growing businesses.
- Public Limited Company (Ltd.)– Ideal for large-scale operations with multiple shareholders.
- Limited Liability Partnership (LLP)– Offers benefits of limited liability with flexible operations.
- Wholly Owned Subsidiary– A foreign company can own 100% of shares in permitted sectors.
- Joint Venture (JV)– Partnership with an Indian company to leverage local expertise.
Step-by-Step Process of Company Registration in India
Minimum 2 Directors and 2 shareholders are required for company registration in India out of which at least 1 Director must be an Indian. Also, local office address and sufficient capital is required although no minimum capital is prescribed.
Step 1: Apply for Company Name Approval
Foreign businesses must apply for two unique names through the RUN (Reserve Unique Name) portal of the Ministry of Corporate Affairs (MCA). The name should comply with MCA guidelines and should not resemble any existing business.
Step 2: Obtain Digital Signature Certificate (DSC)
Since the entire registration process is online, all directors must obtain a Digital Signature Certificate (DSC) to sign incorporation documents electronically.
Step 3: Prepare Incorporation Documents
Prepare and submit the necessary incorporation documents, including:
- Director Identification Number (DIN)application for directors.
- Memorandum of Association (MOA)– Defines company objectives.
- Articles of Association (AOA)– Outlines internal company regulations.
- Form SPICe+ (Simplified Proforma for Incorporating a Company Electronically)for incorporation, PAN, TAN, and other registrations.
Step 4: Obtain Certificate of Incorporation (COI)
Once the Registrar of Companies (ROC) verifies the documents, the Certificate of Incorporation (COI) is issued. The company now has a legal identity in India.
Step 5: Open a Corporate Bank Account
After incorporation, open a corporate bank account in India. All foreign shareholders must remit share subscription money in proportion to their shareholding.
Step 6: Post-Incorporation Compliance for Foreign Investors
- Apply for GST Registration(if turnover exceeds the prescribed limit).
- Obtain Importer Exporter Code (IEC)for businesses engaged in international trade.
- State-Specific Registrationslike Shops & Establishments, Professional Tax, etc.
- Intimate RBI About Foreign Direct Investment (FDI)by filing Form FCGPR within 30 days of share capital issuance.
- Additional Approvals for Investors from Land Border Countries– If any shareholder or director is from countries bordering India (China, Pakistan, Bangladesh, Nepal, Myanmar, Bhutan, Afghanistan), prior approval from Foreign Investment Facilitation Portal (FIFP) and Ministry of Home Affairs (MHA) is required before FDI receipt or DIN allotment.
How EzyBiz India Consulting LLP Can Help?
At EzyBiz India, we provide end-to-end assistance for Business setup in India. Our services include:
Pre-Incorporation Assistance
- Company Name Approval & Incorporation Documentation
- Virtual/Physical Office Setup
- Nominee Directors & Shareholders Arrangement
- Obtaining approval from MHA and FIFP
Post-Incorporation Compliance
- Corporate Bank Account Opening & Share Subscription Compliance
- RBI Compliance & FCGPR Filing for FDI Intimation
- Tax Registrations (GST, IEC, PAN, TAN)
- Accounting, Bookkeeping, Payroll & Audit Services
- Regulatory Compliance & Annual Filings with MCA
- Manpower Recruitment
Alternative Business Entry Options
Instead of registering a new company, we also assist foreign businesses in direct acquisition or partial acquisition of existing Indian companies as part of our Mergers & Acquisitions (M&A) Services.
Fundraising & Business Expansion Support
We provide support in:
- Private Equity & Venture Capital Funding
- Debt & Equity Financing Assistance
- M&A Deal Structuring & Due Diligence
Final Thoughts
Registering a company in India is a streamlined process, but foreign investors must comply with FDI guidelines, tax regulations, and RBI reporting. Whether you are a startup, an SME, or a multinational, ensuring proper legal and financial structuring will facilitate smooth business operations.
At EzyBiz India, we provide complete handholding and comprehensive India Entry Services to foreign businesses looking for a hassle-free experience through our expert team of professionals and with more than 20 years of experience.
Contact us today to explore your options and establish a successful business in India!
Reach out to us at +919899217778 or mail us at anil@ezybizindia.in