How can foreigner register company in India – Step by Step Guide

Step 1: Decide on the Type of Company

Foreign nationals can register various types of companies in India. The most common options include:

• Private Limited Company (most preferred for IT, manufacturing and trading).
• Limited Liability Partnership (LLP).
• Branch Office, Liaison Office, or Project Office (for foreign company extensions).

Factors to Consider:

• Nature of the business.
• Compliance requirements.
• Foreign Direct Investment (FDI) regulations.

Step 2: Obtain a Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) is essential for online filing of forms on the Ministry of Corporate Affairs (MCA) portal.

Requirements:

• Passport (notarized and apostilled for foreign nationals).
• Proof of address (utility bill, bank statement having name and address – notarised and appostilled).
• Passport Photo

Process:

1. Apply through a licensed Certifying Authority (CA) in India.
2. Submit documents and complete the verification.

Step 3: Select and Reserve a Company Name

Choose a unique name for your company and ensure it complies with the naming guidelines set by the MCA.

Steps:

1. Check name availability using the RUN (Reserve Unique Name) service on the MCA portal.
2. Submit up to two names for approval.
3. Once approved, the name is reserved for 20 days.

Step 4: Draft the Memorandum and Articles of Association

The Memorandum of Association (MoA) and Articles of Association (AoA) are foundational documents for company registration.

• MoA outlines the company’s objectives.
• AoA specifies internal rules and governance.

Additional Requirements for Foreigners:

• Foreign nationals must notarize and apostille these documents in their home country before submitting them.

Step 5: Register the Company with the MCA

Once all documents are prepared, proceed to incorporate the company on the MCA portal.

Steps:

1. Fill the SPICe+ form (Simplified Proforma for Incorporating a Company Electronically).
2. Attach documents:
   • MoA and AoA.
   • Identity and address proof of directors.
   • Address proof of the registered office.
3. Pay the registration fee and stamp duty.
4. Submit the application.

Step 6: Open a Bank Account

To operate in India, the company must have a local bank account.

Requirements:

• Certificate of Incorporation.
• PAN card of the company.
• Address proof of the registered office.

Step 7: Comply with Foreign Exchange Management Act (FEMA) Regulations

Foreign companies investing in India must adhere to the Foreign Exchange Management Act (FEMA) regulations.

Steps:

• Report the investment to the Reserve Bank of India (RBI) via Form FC-GPR within 30 days.
• Follow sector-specific FDI limits and restrictions.

Step 8: Register for Goods and Services Tax (GST) (If Applicable)

If your company’s turnover exceeds ₹40 lakh (₹20 lakh for some states) or deals in inter-state supply, GST registration is mandatory.

Steps:

1. Visit the GST portal.
2. Provide business details, PAN, and bank account information.
3. Upload required documents.

Key Points for Foreigners Registering a Company in India:

• Foreign directors need to meet residency requirements (at least one director must be an Indian resident).
• Ensure all documents are properly notarized and apostilled as per Indian legal requirements.
• Seek professional assistance from a chartered accountant or company secretary to avoid procedural delays.