Business set up in india, Foreign Company Registration in India

Business Setup Services in India for Foreign Companies

India has emerged as a major destination for foreign companies looking to establish or expand their business operations. With a large consumer market, skilled workforce, growing manufacturing base and expanding digital economy, India offers significant opportunities across a wide range of sectors.

EzyBiz India provides end-to-end Business Setup Services in India for foreign companies, multinational groups and overseas investors. We assist with selecting the appropriate business structure, company incorporation, FDI and FEMA compliance, tax registrations and ongoing regulatory support.

Business Setup in India – At a Glance

✅ 100% FDI is permitted in many sectors under the Automatic Route, subject to applicable sectoral conditions.

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

✅ Company incorporation is regulated under the Companies Act, 2013 and administered through the  Ministry of Company Affairs

✅ Foreign investmentand cross-border transactions are subject to 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.

✅ Foreign investment into an Indian company may also require applicable RBI/FEMA reporting.

✅ EzyBiz India can support the business from structure selection and incorporation through tax, accounting, payroll and ongoing compliance.

Why Choose EzyBiz India?

  • 20+ years of professional experience
  • Big-4 professional background
  • Specialists in India Entry, FDI, FEMA and cross-border advisory
  • Multidisciplinary team of Chartered Accountants, Company Secretaries and regulatory professionals
  • End-to-end support from business setup to ongoing compliance
  • Single point of coordination for foreign company setup in India
  • Dedicated relationship support throughout the engagement

Step-by-Step Process for Setting Up a Business 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

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FDI Review

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Company Registration

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GST

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Bank Account

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RBI

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Compliance

Planning to Establish or Expand Your Business in India?

Get end-to-end assistance with India market entry strategy, entity setup, regulatory approvals and post-entry compliance.

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Typical Timeline for Business Setup in India

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

    • Passport
    • Address proof
    • Recent passport-size photograph
    • Email address and mobile number
    • Basic personal details required for DIN/incorporation
    • Other KYC documents/information, wherever applicable

    Note: Documents of foreign nationals generally need to be notarised and apostilled or consularised, as applicable in the country where the documents are executed.

    Documents of Indian Director

    • PAN
    • Aadhaar
    • Address proof
    • Recent passport-size photograph
    • Email address and mobile number
    • Basic personal details required for DIN/incorporation
    • Other KYC documents/information, wherever applicable

  • Other Documents / Information Required

    • 2 proposed names of the company
    • Brief description of the proposed business activities
    • Proposed shareholding structure and percentage holding of each shareholder
    • Proposed authorised and paid-up share capital
    • Company email address and mobile number
    • Registered office address proof
    • Rent/lease agreement, where the premises are rented
    • Latest utility/electricity bill for the registered office
    • NOC from the owner/landlord, wherever applicable

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. Foreign companies planning to establish a dedicated technology, finance, engineering or business-operations team may explore our Global Capability Centre Setup Services in India.

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.

Business Structures Available for Setting Up in India

Foreign companies can establish their presence in India through different legal structures depending on their proposed activities, ownership requirements, investment plans and long-term business objectives. Broadly, these structures may be classified as incorporated entities and unincorporated entities.

  1. 1. Incorporated Entities

    • Private Limited Company / Wholly Owned Subsidiary
    • Limited Liability Partnership
    • Joint Venture

    2. Unincorporated Entities

    • Branch Office
    • Liaison Office
    • Project Office
    • 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

Broad Tax Position of Different India Entry Structures

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.

Which Business Structure Is Best for Setting Up in India?

There is no single business structure that is suitable for every foreign company entering India. The appropriate option depends on the proposed activities, ownership requirements, investment plans, regulatory considerations and long-term business objectives.

A Liaison Office may be considered where the foreign company only wants a limited non-commercial presence for communication, market research or business promotion. A Branch Office or Project Office may be suitable for specific permitted activities, while a Wholly Owned Subsidiary is generally preferred where the foreign investor plans to undertake long-term commercial operations in India.

The final structure should be selected after considering commercial, FDI, FEMA, tax and compliance implications.

Foreign Company Registration in India

How EzyBiz India Supports Business Setup in India?

EzyBiz India provides end-to-end support to foreign companies for setting up and operating their business in India, including strategy, incorporation, regulatory approvals, banking, FEMA/RBI compliance and post-incorporation registrations.

  • India Entry Strategy & Structure Selection
    We evaluate the available entry options and help identify the most suitable structure from a commercial, tax, legal, FDI and FEMA perspective.

    Company Incorporation & Regulatory Approvals
    We assist with incorporation and applicable approvals or registrations before the Ministry of Corporate Affairs, RBI and other relevant authorities.

    Bank Account & Capital Infusion Support
    We assist with opening the company’s bank account and coordinating the initial capital contribution by foreign shareholders.

    FEMA, RBI & ROC Compliance
    We support applicable reporting and filings relating to receipt of foreign investment, allotment of shares and other post-incorporation regulatory requirements.

    Other Registrations
    Depending on the business activities, we assist with registrations such as GST, IEC, PF, ESI, Shops & Establishment, Professional Tax, PAN and TAN.

Post-Incorporation Compliance & Business Support

Setting up the company is only the first stage. Once operations begin, businesses need ongoing support for accounting, taxation, corporate compliance, FEMA/RBI reporting, payroll and other regulatory requirements.

Tax & Regulatory Compliance
Corporate income tax, withholding tax, GST, transfer pricing and other applicable tax compliances.

FEMA & RBI Compliance
Support for applicable foreign investment reporting, FLA, FC-GPR, FC-TRS, ECB and other cross-border compliance requirements.

Audit & Assurance
Statutory audit, internal audit, financial reporting and related assurance support.

Corporate Secretarial Compliance
Board and shareholder meetings, annual ROC filings, statutory registers and event-based Companies Act compliances.

Accounting & Payroll Support
Bookkeeping, financial reporting, payroll processing, TDS, PF, ESI and employee-related compliance support.

Labour Law Compliance
Applicable labour registrations, periodic filings and ongoing employment-related statutory compliance.

  • Frequently Asked Questions About Business Setup in India

    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.

    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:

  • About EzyBiz India Consulting LLP

    EzyBiz India Consulting LLP is a multidisciplinary advisory firm assisting foreign companies, overseas investors and multinational groups with India market entry, business setup, FDI and FEMA advisory, taxation and ongoing regulatory compliance.

    Last Updated: August 2026

     

    Disclaimer

    The information provided on this page is for general informational purposes only and should not be considered legal, tax or regulatory advice. The requirements for setting up and operating a business in India may vary depending on the nature of activities, business structure, sector, ownership and applicable regulations. Professional advice should be obtained based on the specific facts and circumstances before taking any decision.

     

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