Search
Close this search box.
Contact Us

Company Registration
By Foreigners In India

Setindiabiz is your one-stop destination for starting a company in India as a foreigner. We have over two decades of experience in setting up Indian Subsidiaries or standalone companies with 100% foreign shareholding in India.
google-review
trustpilot
Setting up a business as a local (Indian)? click here →

Consult with an Expert!

Contact Method

Ver03

Trusted By
Leading Brands
innovecaer
hotgen
Atlas
porter
Carwale
indian-post
pepperfry
docquity
Zopper
larson and turbo
lotte
testbook
Aviva
IT
Pharma Clinix
Exitel
DEON
OSKAR

Why Incorporate an Indian Company?

Open Economy

India is an open economy, and 100% foreign equity is allowed in most sectors except for strategic sectors.

01

Lower Corporate Tax

The corporate tax rate for manufacturing is 15%, while for other sectors it is 22%, providing an appealing tax structure.

02

Young Talent Pool

More than 65% of the population is under 35 Years of age, with 1.5 million engineers and 4 million graduates.

03

Big Native Market

A population of approximately 1.4 billion individuals with an estimated expenditure of $6 trillion by 2030.

04

Overview of the Company Incorporation for Foreigners in India

  • Regulation
  • The Companies Act 2013
  • Companies (Incorporation) Rules, 2014
  • FDI Policy of India
  • Prof Fee
USD 500
  • Govt Fee
Depends on number of directors, proposed capital & state
  • Total Cost
Contact us; we will provide an all-inclusive cost of Incorporation
  • Timeline
The company incorporation takes one to two weeks after receipt of complete, duly legalised documentation. Please see the legalisation section below.
  • Process
100% Online Filing
  • Why Setindiabiz?
Setindiabiz is a team of experienced professionals with over two decades of experience assisting foreigners in establishing their Indian Companies, filing the FDI Report in FC-GPR, and setting up accounting and payroll for them. Our offerings are well structured and charged transparently.
expert-model

Need Expert Help?

Our expert team at Setindiabiz is excited to assist you. Book your free consultation today!
calculator-icon
Schedule Free

Consultation

Why Incorporate a Private Limited in India?

As a foreign individual, you have only two options: a Private Limited Company or an LLP. As per FEMA, a foreigner can not do business as a Proprietor in India, and a foreign national can not set up a partnership firm in India. Though LLP Incorporation with FDI is permitted, the tax rate is high. We recommend establishing a Private Limited Company, as the process is straightforward.

Benefits of Private Limited

Low Tax Rates

Easy Incorporation

Easy FDI Reporting

Easy Transfer of Shares

Easy Director Changes

Play Video about fdi-company-registration

India Entry Options for Foreign Shareholders or Investors.

India is a promising nation with unlimited growth potential, a large talent pool, and a growing middle class, which makes it attractive for foreign investors to set up an Indian Company. An individual shareholder/investor can choose between a Private limited company and an LLP. Here is a comparison between the Company and LLP to make a well-informed decision.
Criteria Private Company LLP
Constitution Documents
Certificate of Incorporation Issued by ROC, Memorandum & Articles of Association.
Certificate of Incorporation Issued by ROC and the LLP Agreement between the partners
FDI
FDI is 100% allowed in most sectors. However, limited FDI is allowed in strategic sectors such as Media, Housing, etc.
FDI is allowed only in those sectors where 100% FDI is allowed.
Taxation
The corporate tax rate is 15% for manufacturing and 22% for new Companies.
The Income Tax rate of the LLP in India is 30%
Incorporation
Relatively Easy
After Incorporation, the LLP Agreement is executed in hard copy and, therefore, complicated.
Compliance
Compliance is higher to ensure transparency and corporate governance.
Lower than that of the Company.

Eligibility to Incorporate the Company in India

shareholder

2 to 200 Shareholders

A minimum of two person is required as shareholders. Both persons can be foreigners.

director

2 to 15 Directors

Directors are responsible for operating the business and ensuring compliance.

one-resident-director

One Resident Director

One of the directors of the Indian Company must reside in India for at least 120 days.

Unique Name of Company

The Indian company name must be new/unique and not similar to an existing business.

money

Pre-Defined Capital

Incorporate a company with any capital level. No minimum or maximum is prescribed.

legal

Legal Object/Activity

The object for which the company is incorporated must be legal in India.

List of Documents For Company Registration

Documentation plays a crucial role in setting up a company in India. The overall time required to set up an Indian company depends mainly on the time consumed in arranging the documents and their legalisation. The documents of foreign origin and those signed or executed outside India must also be legalised or as per Rule 13(5) of The Companies (Incorporation) Rules, 2014.

Documents from Foreign Individual

Passport
The passport of the foreign shareholder or director is a mandatory document for foreigners incorporating a company.
Address Proof
The ideal residential address proof is a bank statement, credit card bill, telephone or mobile bill, or gas bill with the shareholder or director full name and complete address. The document should not be older than 60 days on submission date.
Colour Photo

Note:- Submit a photo of each proposed director and shareholder with a full-face frontal view and A plain white or light-coloured background.

From India Resident Director

Aadhar Card
Aadhar Card is mandatory for all Resident Indians. However, ensure that the aadhar is linked to the PAN and mobile number for OTP-based verification during the incorporation process.
PAN Card
The PAN card is mandatory for all Indian promoters. The name on the PAN card must match all other documents.
Colour Photo
Note:- Submit a photo of each proposed director and shareholder with a full-face frontal view and A plain white or light-coloured background.
Identity Proof
For identity proof, the promoters of Pvt Ltd Company may submit any document from the following:
  • Passport
  • Aadhar Card
  • Driver License
  • Voter ID
Address Proof

Every company promoter (Director and shareholder) must submit one document that is not older than two months as proof of Residential address.

For Registered Office

Proof of Registered Office
Note:- Proof of Registered Office address should not be older than two months. The utility bill must have the full name and complete address. Any document below is acceptable.
NOC from the Owner of the Registered Office
Note:- The owner of the premises where the pvt ltd company shall have its registered office must give a No Objection Certificate (NOC) for incorporation of the company at that address. Contact us for the format.

Incorporation on Communication Address:

In India, entrepreneurs starting a new business can begin their company registration process with a “communication address” even before securing a permanent office. This temporary address helps you start the formalities while searching for the ideal premises. However, remember to file the registered office address details within 30 days of incorporation in Form INC-22 to the ROC.

Rule for Legalisation of Foreign Documents.

Rule 13(5) of Companies (Incorporation) Rules, 2014, makes specific provisions concerning the legalisation of documents originating from a foreign country for use in India during the incorporation process. Similarly, the signed or executed documents would need to be witnessed similarly. For this purpose, the process of legalisation would vary from country to country. The table below may be referenced for this purpose.
No Particulars Legalisation Method
1.
Persons Visiting India
If you are visiting India on a business visa and carrying the original documents with you, then a Notary Public in India can attest to the same. However, you need to furnish a copy of your business visa and the Immigration Entry Stamped page of your passport.
2.
For Commonwealth Nations
Documents originating from Commonwealth nations may be legalised by notary public attestation in the home country. Please refer to the link below for the list of commonwealth nations. https://www.setindiabiz.com/list-of-commonwealth-countries
3.
Hague Convention Signatories
The documents originating from the countries that are part of the Hague Convention may get their documents apostilled in the home country. The list of Hague Convention countries is at below link: https://www.setindiabiz.com/hague-convention-list-of-countries
4.
Other Countries
Applicants from other countries that are neither part of the Commonwealth nor signatory of the Hague Convention have only one option: attestation by the Indian Embassy or Consulate.

Process of Company Incorporation for Foreigners

Documentation plays a significant role in incorporating a private limited company in India by foreigners. The incorporation experts at setindiabiz are experienced in helping foreigners establish companies in India. The following stepwise process will help you understand the process in detail. We are available to answer your questions.
  • step-1
    Legalisation or Attestation of Documents

    The process begins with the documentation of the promoters' documents as per the List of Documents provided above. The documents having foreign origin need to be legalised as per the procedure prescribed in rule 13(5) of the Companies Incorporation) Rules 2014.

  • Step-2
    Obtaining the Digital Signature of all Promoters

    The incorporation process for companies in India is 100% digital, and no physical document has been submitted. This digital approach ensures a streamlined and efficient process. The online incorporation filing is done by authenticating the Spice Plus form with a digital signature. As a Registration Authority (RA) of the Certifying Authorities such as Emudhra, SignX, and others appointed by the Controller of Certifying Authorities of the Government of India, we help DSC applicants collect documents and submit DSC applications to obtain DSC.

  • Step-3
    Name Search for Availability

    The name of your Indian company must be unique and eligible in view of the naming guidelines and rules provided under the Companies Act. Broadly, the proposed name must not be the same as or similar to an existing company, LLP, or trademark. We help you conduct a thorough search of the proposed company name during the incorporation process.

  • Step-4
    Drafting of Memoranducompanycles of Association

    The MOA, also known as the Memorandum of Association, is the primary constitution document for Indian companies that prescribes the object for which the company is registered. The AOA, which stands for the Articles of Association, provides the internal rules for managing the company. We help you draft these crucial documents at the time of incorporation of the company.

  • Step-5
    Filing of Spice Plus for company incorporation certificate

    Finally, when the documents are arranged and legalised as per rule 13(5) stated above, we will help you prepare the Spice Plus form, the prescribed form for incorporation of the companies. The necessary documents are scanned and uploaded as attachments to the Spice Plus form and digitally signed by the applicant directors. At the time of filing the incorporation application, the government fee is paid. The approval of the Spice Plus form results in the issuance of a Certificate of Incorporation containing CIN, PAN and TAN.

process-consultation-model

Feeling Overwhelmed?
We're Here to Help!

  • Confused about the steps?
  • Finding it too legal and complicated?
  • Need more understanding and clarity?
calculator-icon
Schedule Free

Consultation

Timeline for Company Registration

The time required to incorporate a company with foreign shareholding mostly depends on the time taken for documentation and legalisation. The following timeline depicts the time taken after the documents are ready and duly legalised. The incorporation experts of setindiabiz are readily available to help.

1-2 Days

Documentation & DSC

1-3 Days

Name Search & Drafting

3-4 Days

Filing for Incorporation

4-7 Days

Incorporation Certificate

Document and information collection & Making of Digital Signature

Name Availability Search & Drafting of MOA, AOA.

Preparation of Spice Plus Form for Incorporation Filing

Issue Certificate of Incorporation by ROC, that contains CIN, PAN and TAN

1-2 Days

Documentation & DSC

Document and information collection & Making of Digital Signature

1-3 Days

Name Search & Drafting

Name Availability Search & Drafting of MOA, AOA.

3-4 Days

Filing for Incorporation

Preparation of Spice Plus Form for Incorporation Filing

4-7 Days

Incorporation Certificate

Issue Certificate of Incorporation by ROC, that contains CIN, PAN and TAN

Frequently Asked Questions

1. Why is India a good place to start a company?

India is the fastest-growing economy in the world today, and the Make in India initiative is well-received by businesses globally. Setting up your company in India has numerous advantages, including a digitalised compliance and tax filing system and lower tax on manufacturing (15%) and 22% on other activities. India is also known as a startup hub due to the government’s startup-friendly ecosystem and industry-friendly initiatives.

2. What tax benefits do companies get when starting a company in India?

India offers a tax-friendly ecosystem for growth. It has a low Corporate Tax (15% income tax for new manufacturing companies and 22% for others), tax holidays for eligible startups, and special deductions for R&D expenditures.
The companies in India are governed by the provisions of the Companies Act of 2013, tax laws and FEMA provisions. Broadly, a company incorporated in India must obtain all necessary registrations or licenses necessary for the conduct of business as per its main object. The tax regime provides for levy and collection of GST & Income Tax, which is a time bound activity. Therefore, companies should be cautious in meeting tax compliance requirements. Protect IPR: Intellectual properties are considered to be the most valuable assets in modern times; the first step is to identify and protect the Trademarks, Copyright, Patent and designs in India as soon as possible.

4. Does a foreigner need to visit India to establish a company?

No—The foreign shareholder does not need to visit India. Documents must be legalised in the home country. However, the process becomes fast if the foreign promoter visits India on a Business Visa.

5. Can foreigners hold 100% shareholding?

Yes, the foreign individual or a foreign incorporated company can be a 100% shareholder in the Indian Company provided the sector is open for the 100% FDI.