Business set up in india, Foreign Company Registration in India

Business Setup in India for Indian & Foreign Businesses

Post economic liberalization in 1991, India has gradually become most sought after destination for foreign entities for business setup in India. It is one of top 10 FDI destinations in the world.

What are the reasons for more and more foreign companies opting for business set up in India and for such increase in FDI?

Whether you are a foreign investor, multinational corporation, startup, NRI or Indian entrepreneur, our experienced professionals provide end-to-end assistance for establishing and operating your business in India.

Business Setup in India – At a Glance

✅ 100% Foreign Direct Investment (FDI) is permitted in most sectors under the Automatic Route, subject to sector-specific regulations.

✅ Foreign investors can establish their presence through a Wholly Owned Subsidiary, Joint Venture, Branch Office, Liaison Office, Project Office, or LLP, depending on their commercial objectives.

✅ A Private Limited Company (Wholly Owned Subsidiary) is the most preferred structure for long-term business operations in India. Approval for company incorporation is given by Registrar of Companies governed by the Ministry of Company Affairs

✅ Incorporation of an Indian company can generally be completed within 10–15 working days, subject to document availability and regulatory approvals.

✅ Foreign investment in India is governed by the Companies Act, 2013, FEMA, Reserve Bank of India  regulations, and the prevailing FDI Policy.

✅ After incorporation, businesses are required to obtain registrations such as PAN, TAN, GST, IEC (where applicable), and complete RBI reporting for foreign investment.

✅ India continues to be one of the world’s fastest-growing major economies, offering a large consumer market, skilled workforce, and a favourable business environment for global investors.

✅ End-to-end support from incorporation to ongoing accounting, taxation, payroll and annual compliance.

✅ Assistance in obtaining industry-specific registrations and licences, wherever applicable.

Why Choose EzyBiz India?

✔ 20+ Years of Professional Experience

✔ Specialists in India Entry & Cross-Border Advisory

✔ Big-4 Alumni Experience

✔ End-to-End Support from Incorporation to Compliance

✔ Dedicated Team of Chartered Accountants, Company Secretaries & Legal Professionals

✔ One Window Solution for Foreign Companies

✔ Dedicated Relationship Manager

✔ Transparent Pricing & Timelines

✔ Post-Incorporation Compliance Support

Step-by-Step Process for Business Setup in India

Step 1

Initial Consultation & Understanding Business Objectives

Step 2

Selection of Suitable Business Structure

Step 3

FDI & FEMA Eligibility Review

Step 4

Documentation & Incorporation

Step 5

PAN, TAN, GST & Other Registrations

Step 6

Opening Bank Account & Capital Infusion

Step 7

RBI Reporting & Regulatory Compliance

Step 8

Post Incorporation Accounting, Tax & Compliance Support

Consultation
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Business Structure

↓

FDI Review

↓

Company Registration

↓

GST

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Bank Account

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RBI

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Compliance

Need Assistance with Business Setup in India?

Our India Entry specialists can help you choose the right business structure, obtain registrations and manage all regulatory compliances.

Book a Consultation

Estimated Timeline

Activity Typical Timeline
Initial Consultation 1 Day
Document Collection 2–5 Days
Name Reservation 2–3 Days
Company Incorporation 5–7 Days
PAN/TAN 3–5 Days
GST Registration (if applicable) 5–10 Days
Bank Account Opening 10–12 Days
RBI Reporting 15–20 Days

Timelines are indicative and may vary depending on document readiness, regulatory approvals and the proposed business structure.

Documents Required for Business Setup in India

Documents of Foreign Director

  • KYC Documents- Passport and Address proof
  • Colored photo
  • Valid email and Mobile No. of foreign director
  • Place of Birth of foreign director
  • Educational Qualification of foreign Director
  • Occupational detail of foreign Director
  • Father Name and mother name of Foreign Director
  • All the documents of the foreign citizen/nationals shall be notarized and apostile in home country or notarized and consularized in case no Apostile authority present.

    Documents of Indian Director

  • KYC Documents- PAN, Aadhar, Passport, Utility Bills
  • Color passport photo
  • Valid email and Mobile No.
  • Place of Birth
  • Educational Qualification
  • Occupational detail

    Other Documents  Required

  1. 2 Proposed Names of the company
  2. Objects of the company i.e what will be nature of business activity of proposed company
  3. Percentage shareholding of both shareholders
  4. Amount of initial authorized and paid up capital
  5. Company mobile and email id
  6. Registered office address proof- Can also be virtual office or physical office. Copy of rent/lease agreement + Latest Electricity Bill in name of Landlord + NOC from Landlord

Why Setup Your Business in India?

India has emerged as one of the world’s most attractive investment destinations for multinational corporations, technology companies, manufacturers, start-ups and global service providers. A stable democratic system, large domestic market, competitive operating costs and continuous regulatory reforms make India an ideal destination for long-term business expansion.

Why Global Businesses Choose India

One of the World’s Fastest Growing Major Economies

India continues to be among the fastest-growing major economies, supported by strong domestic consumption, increasing investments, rapid digitalisation and favourable demographic trends.

Large Consumer Market

With a population exceeding 1.4 billion people and one of the world’s largest middle-class consumer bases, India offers significant opportunities across manufacturing, retail, technology, healthcare, financial services and consumer businesses.

Liberal Foreign Direct Investment (FDI) Policy

100% Foreign Direct Investment (FDI) is permitted under the Automatic Route in most sectors, enabling foreign investors to establish wholly owned subsidiaries without prior Government approval, subject to applicable sectoral regulations.

Global Manufacturing Hub

Government initiatives such as “Make in India”, Production Linked Incentive (PLI) Schemes and infrastructure development have positioned India as a preferred manufacturing and global supply chain destination.

Skilled Workforce

India has one of the world’s largest pools of engineers, finance professionals, IT specialists, legal experts and skilled technical manpower, providing businesses with access to high-quality talent at competitive costs.

Digital Economy

India’s rapidly growing digital infrastructure, widespread internet penetration and digital payment ecosystem have transformed the ease of doing business and created significant opportunities for technology-driven enterprises.

Global Capability Centres (GCCs)

India has become the preferred destination for Global Capability Centres (GCCs), with hundreds of multinational corporations establishing technology, finance, engineering and research centres across major Indian cities.

Business-Friendly Regulatory Environment

Continuous reforms in company law, taxation, digitisation of government approvals, GST implementation and online regulatory filings have significantly improved the ease of establishing and operating businesses in India.

Strategic Geographic Location

India provides an ideal base for serving South Asian, Middle Eastern and Asia-Pacific markets, making it an attractive regional headquarters for global businesses.

Strong Startup & Innovation Ecosystem

India hosts one of the world’s largest startup ecosystems, supported by innovation, venture capital investments, government initiatives and increasing global investor participation.

Complete Business Setup Services

  • Company Incorporation
  • FEMA
  • RBI
  • GST
  • PAN
  • Accounting
  • Payroll
  • Audit
  • Transfer Pricing
  • Secretarial
  • Annual Compliance

Industries We Serve

  • Manufacturing
  • Technology
  • Healthcare
  • Trading
  • Renewable Energy
  • Retail
  • E-commerce
  • Logistics
  • Financial Services
  • Professional Services

Why Businesses Trust EzyBiz Even After Incorporation

Incorporating a company is only the first step in establishing a successful business in India. Once your business is operational, it must comply with various corporate, tax, labour and foreign exchange regulations on an ongoing basis. Failure to meet these obligations can result in penalties, regulatory issues and unnecessary business disruptions.

Unlike firms that limit their services to company registration, EzyBiz India Consulting LLP provides comprehensive post-incorporation support, enabling businesses to focus on growth while we manage their regulatory and compliance requirements.

Our Post-Incorporation Support Includes:

✔ Accounting & Bookkeeping – Accurate maintenance of financial records in accordance with Indian Accounting Standards.

✔ GST Compliance – GST registration, return filing, reconciliation, advisory and departmental support.

✔ Income Tax Compliance – Advance tax planning, income tax return filing, tax advisory and assessment support.

✔ Payroll Management – Employee payroll processing, TDS deductions, PF, ESI and labour law compliances.

✔ Statutory & Internal Audit – Audit services to ensure compliance with statutory requirements and strengthen internal controls.

✔ FEMA & RBI Compliance – Assistance with FC-GPR, FC-TRS, Annual Return on Foreign Liabilities and Assets (FLA), External Commercial Borrowings (ECB), ODI and other FEMA reporting requirements.

✔ Secretarial Compliance – Annual ROC filings, board meetings, statutory registers and Companies Act compliances.

✔ Transfer Pricing & International Tax – Documentation, benchmarking studies, Form 3CEB and advisory for multinational enterprises.

✔ Virtual CFO Services – Financial reporting, budgeting, MIS, cash flow management and strategic financial advisory.

With EzyBiz India Consulting LLP as your long-term compliance partner, you receive integrated support across legal, tax, regulatory and financial matters throughout your business journey in India.

VARIOUS OPTIONS FOR BUSINESS SETUP IN INDIA

There are many options  for business setup in India. Foreign investors can establish their business presence in India through multiple legal structures depending upon their commercial objectives, investment plans and regulatory requirements. Same are mentioned as under: 

Foreign entities can opt for business setup in India in form of either incorporated entities or unincorporated entities.

  1. Incorporated Entities : Private Limited Companies, Limited liability partnerships, Joint Ventures.
  2. Unincorporated Entities : Liaison Office, Branch Office, Project Office.
  1. Private Limited Company [ Wholly Owned Subsidiary ] – Most Popular form of Entity is Private Limited Company. Foreign companies can open wholly owned subsidiary in India wherein 100% shares can be held by foreign company.
  2. Limited Liability Partnerships – Second most popular form of entity is Limited Liability Partnership.
  3. Liaison Office- This cannot do any business activity or earn profits. It can act only as communication channel between parent entity and Indian consumer.
  4. Branch Office and Project Office – They can do only permissible business activity as prescribed by RBI. Project offices are opened for particular project.

    Foreign investors can establish their business presence in India through different legal structures depending upon their business objectives, proposed activities, investment plans and regulatory requirements. The most suitable structure should be selected after considering commercial, legal, tax and FEMA implications.

    Business Structure Separate Legal Entity Foreign Ownership Revenue Generation Best Suitable For
    Wholly Owned Subsidiary (Private Limited Company) Yes Up to 100% FDI in most sectors Yes Long-term business operations, manufacturing, trading, services
    Joint Venture Company Yes As per agreed shareholding Yes Strategic partnerships with Indian companies
    Limited Liability Partnership (LLP) Yes Permitted in eligible sectors under the FDI Policy Yes Professional services, consulting and knowledge-based businesses
    Branch Office No Extension of foreign company Yes (permitted activities only) Foreign companies undertaking approved commercial activities in India
    Liaison Office No Extension of foreign company No Market research, communication and business promotion
    Project Office No Extension of foreign company Project-specific Execution of a specific contract or project in India

Rates of Taxes applicable to each type of entities 

  1. Private Limited Company [Wholly Owned Subsidiary] – Depending upon nature of activities, Companies are liable to tax on its income at varied tax rates like 15%, 22%, 25% and 30% depending upon case to case. Also, Subject to MAT @ 15% of book profits.
  2. Limited Liability Partnerships – LLPs are liable to tax @30% on its  Also alternate minimum tax of 18.5% is also applicable on LLPs on their book profits.
  3. Branch Office and Project Office – Tax rate applicable on income earned in India @ 40% plus surcharge and education cess.
  4. Liaison Office – They are not taxable since they cannot do any commercial activities in India.
    Business Structure Broad Tax Position* Key Remarks
    Wholly Owned Subsidiary (Private Limited Company) Corporate tax rates as applicable under the Income-tax Act Most preferred structure for long-term foreign investment due to operational flexibility and separate legal identity.
    Limited Liability Partnership (LLP) Taxable at the applicable LLP tax rate under the Income-tax Act Suitable for professional and partnership-based businesses.
    Branch Office Taxable in India on income attributable to Indian operations Can undertake only RBI-permitted activities and remains an extension of the foreign company.
    Liaison Office Generally not taxable if it strictly undertakes permitted liaison activities and does not earn business income Suitable for market research, communication and business development activities only.
    Project Office Tax treatment depends on the nature of the project and applicable tax provisions Generally established for execution of a specific project in India.

    *Note: The applicable tax liability depends upon the nature of business activities, applicable tax regime, Double Taxation Avoidance Agreement (DTAA), available exemptions and the prevailing provisions of the Income-tax Act, 1961. Professional tax advice should be obtained before finalising the business structure.

Out of all aforesaid options, which is best option  for business set up in India?

Well, it all depends upon intention and vision of foreign companies in setting up business in India. Normally, when foreign companies want to do only water testing of Indian business environment, they opt for liaison office registration. When they are pretty much sure that they want to enter India with long term perspective as well as when the intention is to use the brand name of foreign company, they may opt for subsidiary company registration.

Branch office and liaison office has higher tax rates as compare to Wholly owned subsidiary company.

Therefore, best option for India Entry would depend upon the intention and purpose of setting up company in India by foreign enterprise.

Foreign Company Registration in India

How EzyBiz India Assists Foreign Companies?

 We, provide following services relating to Setting up Business in India.

  • Designing strategy for entering into India 

We assist foreign entities in making analysis of various options available to setup business in India and what is best suited to them from their business, tax, legal and regulatory point of view. We become their trusted partners and advisors in foreign company incorporation in India.

  • Obtaining necessary approval and registrations:

Foreign Company registration in India requires approvals from multiple government authorities. In this regard, we assist foreign companies in obtaining the necessary approvals and licenses as per the applicable laws/regulations like:

  • Reserve Bank Of India (RBI).
  • Ministry of Corporate Affairs (MCA).
  • Foreign Investment Facilitation Portal.

  • Bank Account opening

Post Foreign Company Incorporation in India, bank account need to be opened so that shareholders can contribute their share subscription money. In this regard, we provide assistance in opening current account with Indian and foreign banks in India.

  • RBI/ROC Compliance

After company formation in India, intimation to RBI and ROC need to be given regarding receipt of FDI in India and allotment of shares. We provide complete assistance in regulatory compliance before ROC/RBI. 

  • Obtaining other registrations under various statutes/laws: 

After Indian Company incorporation, some other registrations are required on need basis. We assist foreign companies in obtaining such other registrations like 

  • Goods & Services Tax (GST)
  • Import Export Code (IEC Code)
  • Provident Fund (PF)
  • Employee State Insurance Act (ESI)
  • Shops & Establishment Act
  • Professional Tax
  • Permanent Account Number (PAN)
  • Tax Deduction Account Number (TAN)

What are the lists of services required after Business set up in India?

Normally, after Company formation in India, foreign entities required host of services from professionals like chartered accountants and lawyers. In this regard, we assist foreign enterprises in providing one window solution for their entire regulatory, legal and advisory service requirement. 

POST REGISTRATION COMPLIANCE AND ADVISORY SERVICE 

  1. Tax & Regulatory Advisory and Compliance 

               We provide following services:

  • Corporate tax advisory and tax filing
  • Personnel and Expatriates tax filing and advisory
  • Withholding tax advisory and compliance
  • GST advisory and tax filing
  • GST Refund
  • Customs and FTP Advisory and compliance
  • Foreign Exchange Regulations compliance and advisory
  • RBI compliance and advisory
  • Assurance and Audit Service 

We provide financial reporting, Management and Statutory Audit and Risk advisory service to clients. 

Corporate Secretarial Compliance

We assist our clients in following:

  • Holding of various meetings of Directors’ and Shareholders’ meetings as per secretarial standards and preparation of documents, resolutions relating to same
  • Preparation & filing of Annual Return including Balance Sheet, Profit & Loss account & other documents.
  • Statutory filings with MCA
  • Event based compliance like change of directors, change of address etc
  • Preparation and maintenance of Statutory registers as required by law

Accounts and Payroll Outsourcing

During the early stage of company, it makes sense to outsource entire function of accounts and finance to professional firm instead of doing in house as it not only saves cost but also allows company to attract pool of expertise and experience of professional firm. We outsource following services:

  • Accounting & Book-keeping
  • Payroll management
  • Tax Returns

Labor law Compliance 

  • Maintaining day to day records and registers relating to labor law on behalf of clients
  • Monthly computation of social contribution to be deposited with revenue authorities under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (‘PF’) and Employees’ State Insurance Act, 1948 (‘ESI’)
  • Periodical filing of returns as per applicable labour laws
  • Facilitating the labour law inspector at time of visit to premises
    • ✔ 20+ Years of Professional Experience
    • ✔ Big-4 Alumni Experience
    • ✔ Specialists in India Entry & Cross-Border Advisory
    • ✔ End-to-End Advisory from Strategy to Compliance
    • ✔ Multi-disciplinary Team of Chartered Accountants, Company Secretaries & Legal Professionals
    • ✔ Experience assisting international clients across multiple jurisdictionsAdvisory and compliance services relating to Labour laws

      Frequently Asked Questions (FAQ)

      1. Can a foreign company set up a business in India?

      Yes. Foreign companies can establish their presence in India through various business structures, subject to the applicable provisions of the Companies Act, FEMA and the FDI Policy.

      2. Which business structure is best for setting up a business in India?

      The appropriate structure depends on your business objectives, ownership preferences, investment plans and regulatory requirements. A Wholly Owned Subsidiary is generally preferred for long-term business operations.

      3. How long does it take to set up a business in India?

      The timeline depends on the business structure and regulatory approvals. In most cases, a private limited company can be incorporated within two to four weeks.

      4. Can a foreign investor own 100% of an Indian company?

      Yes. In many sectors, foreign investors can own up to 100% of an Indian company under the Automatic Route, subject to the applicable FDI Policy.

      5. Is an Indian resident director mandatory?

      Yes. Every company incorporated in India must have at least one director who satisfies the resident director requirement under the Companies Act, 2013.

      6. Is RBI approval required to establish a business in India?

      Not in every case. The requirement depends on the proposed business structure and the applicable FDI regulations.

      7. What documents are required for business setup in India?

      Generally, passport, address proof, incorporation documents of the foreign entity, Board Resolution and registered office documents are required.

      8. Is GST registration compulsory?

      GST registration depends upon the nature of business activities and the applicable provisions of the GST law.

      9. Can foreign nationals become directors of an Indian company?

      Yes. Foreign nationals can be appointed as directors, subject to compliance with the Companies Act and other applicable laws.

      10. Is there any minimum capital requirement?

      No. There is presently no statutory minimum paid-up capital requirement for incorporating a private limited company in India.

      11. Can I open a corporate bank account after incorporation?

      Yes. After incorporation and completion of the prescribed KYC formalities, the company can open a bank account in India.

      12. Can profits be repatriated outside India?

      Yes. Subject to FEMA regulations, RBI guidelines and applicable tax laws, profits can generally be repatriated.

      13. What taxes apply to businesses in India?

      Depending on the nature of business, taxes may include Income Tax, GST, TDS, Customs Duty and other applicable levies.

      14. What are the annual compliance requirements?

      Annual compliances may include ROC filings, Income Tax Returns, GST returns, statutory audits, FEMA reporting, payroll compliance and other regulatory filings.

      15. Can EzyBiz help after company incorporation?

      Yes. We provide end-to-end post-incorporation support including accounting, taxation, GST, payroll, audit, FEMA, secretarial and Virtual CFO services.

      16. Can NRIs establish businesses in India?

      Yes. NRIs can establish businesses in India subject to the applicable FEMA and FDI regulations.

      17. Can I change my business structure later?

      Yes. Depending on the circumstances, businesses may restructure their operations or convert into another permissible business structure in accordance with applicable laws.

      18. What industries do you assist?

      We assist manufacturing, technology, trading, healthcare, renewable energy, consulting, logistics, e-commerce and various other sectors.

      19. Why should I choose EzyBiz India Consulting LLP?

      We provide integrated advisory across incorporation, taxation, FEMA, GST, accounting, payroll, audit and ongoing regulatory compliance under one roof.

      20. How do I get started?

      Simply contact our team with your proposed business activity and investment plans. We will recommend the most suitable business structure and guide you through the entire setup process.

      Country-Specific India Market Entry Pages

      We have prepared dedicated India market entry pages to help overseas businesses understand the regulatory, tax and commercial considerations applicable to their jurisdiction. Explore our country-specific pages below:

    • Related India Entry Services

      Ready to Set Up Your Business in India?

      Whether you are a foreign investor, multinational corporation, NRI, startup or Indian entrepreneur, EzyBiz India Consulting LLP provides complete support for establishing, managing and growing your business in India.

      From selecting the right business structure to company incorporation, FEMA and RBI advisory, taxation, GST, accounting, payroll, audit and ongoing compliance, our experienced professionals serve as your single point of contact throughout your business journey.

      Let’s build your business in India—efficiently, compliantly and confidently. Learn more through our India Market Entry Consulting Services, where we provide end-to-end advisory for foreign companies establishing operations in India.

    📞 Call: +91-9899217778

    📧 Email: anil@ezybizindia.in

    Schedule a consultation and take the first step towards expanding your business into India.

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How to setup business in India | Foreign Company Incorporation in India

Sector Wise Routes Available for bringing FDI in India – Doing Business in India