Why Choose India for Your Business Expansion?
India’s booming economy, 1.4 billion consumer base, and pro-FDI policies make it a magnet for global businesses 16. Whether you aim to hire a tech team, sell products, or offer services, India offers:
100% FDI in most sectors (e.g., IT, manufacturing) without prior approval 6.
Cost-effective skilled workforce in tech, engineering, and more 69.
Tax incentives, including reduced rates for startups and export-oriented businesses
Business Structures for Foreign-Owned Companies
1. Private Limited Company (Including Wholly Owned Subsidiary – WOS)
A Private Limited Company (PLC) is the most popular structure for foreign businesses expanding to India. It can operate as a Wholly Owned Subsidiary (WOS) if 100% foreign ownership is permitted in your sector.
Key Features:
Ownership: Up to 100% foreign equity allowed under the automatic FDI route in most sectors (e.g., IT, consulting, manufacturing).
Liability: Limited liability for shareholders.
Compliance: Requires at least 2 directors (1 resident director staying 182+ days/year in India) and a registered office address.
Suitability:
Full Operations: Ideal for hiring a tech team, selling goods/services, or establishing long-term market presence.
Profit Repatriation: Dividends and profits can be repatriated after taxes.
Tax Efficiency: Eligible for corporate tax benefits (25% for turnover under ₹400 crore).
Note: A WOS is simply a type of Private Limited Company where the foreign parent holds 100% shares.
2. Branch Office
A Branch Office acts as an extension of the foreign parent company in India.
Key Features:
Activities Allowed: Restricted to “twin objectives” like export/import, consultancy, or R&D. Cannot engage in manufacturing or retail.
Ownership: Fully owned by the foreign parent but requires RBI approval for setup.
Liability: The parent company bears unlimited liability for branch activities.
Suitability:
Limited Scope: Best for companies testing the Indian market or providing specialized services (e.g., engineering consultancy).
Profit Repatriation: Profits can be repatriated after taxes.
3. Liaison Office (LO)
A Liaison Office serves as a non-commercial, communication channel between the parent company and Indian entities.
Key Features:
Activities Allowed: Limited to market research, promoting parent company services, or facilitating partnerships. Cannot earn revenue in India.
Ownership: Fully owned by the foreign parent; requires RBI approval.
Validity: Initially approved for 3 years (extendable).
Suitability:
Market Exploration: Ideal for businesses conducting feasibility studies or building networks before full-scale entry.
Low Cost: Minimal compliance compared to a PLC or Branch Office.
Comparison Table: Which Structure is Right for You?
| Criteria | Private Limited/WOS | Branch Office | Liaison Office |
|---|---|---|---|
| Ownership | Up to 100% FDI | 100% foreign-owned | 100% foreign-owned |
| Liability | Limited | Unlimited (parent company) | Unlimited (parent company) |
| Commercial Activities | Allowed (e.g., sales, hiring) | Restricted to specific purposes | Not allowed |
| RBI Approval | Not required | Required | Required |
| Compliance | Moderate to high | Moderate | Low |
Why Choose a Private Limited Company (WOS)?
Most foreign businesses opt for a PLC/WOS because it:
Offers full operational control and market access.
Enables easy repatriation of profits.
Builds local credibility with Indian customers and partners.
Key Takeaway
Private Limited/WOS: For scaling operations, hiring, or selling in India.
Branch Office: For limited commercial activities like consulting or R&D.
Liaison Office: For non-revenue tasks like market research.
Step-by-Step Company Registration Process
We handle the entire online setup, ensuring compliance with India’s Companies Act and FEMA regulations:
Choose Business Structure: Opt for a Private Limited Company or WOS for maximum flexibility.
Obtain Digital Signatures (DSC): Required for online document submissions 110.
Apply for Director Identification Number (DIN): Mandatory for all directors .
Reserve a Unique Company Name: Use the MCA’s RUN service to avoid trademark conflicts.
Draft Legal Documents:
Memorandum of Association (MoA): Defines company objectives.
Articles of Association (AoA): Outlines governance rules.
Submit Incorporation Application (SPICe+): File online with the Registrar of Companies (RoC) .
Pay Fees & Stamp Duty: Based on authorized capital.
Receive Certificate of Incorporation (COI): Includes PAN and TAN for tax compliance.
Open a Corporate Bank Account: We assist with document preparation, including notarized foreign papers and wet-ink signatures.
Post-Incorporation Compliance: GST registration, statutory audits, and annual filings.
Resident Director Services – Your Local Compliance Partner
Foreign companies must appoint a resident director to fulfill legal requirements. Our services include:
Nominee Director Provision: A compliant resident director with no operational authority.
Undated Resignation Letter: Retain full control to replace the director anytime.
Annual Compliance Support: Manage board meetings, filings, and audits.
Bank Account Opening in India: Simplified
Opening a corporate account can take 2–3 weeks due to strict due diligence. We streamline the process by:
Preparing documents (COI, MoA, AoA, board resolutions) .
Recommending international banks (HSBC, DBS) for smoother onboarding .
Assisting with AML letters, POAs, and wet-ink signatures.
Taxation & Compliance Simplified
Corporate Tax: 25% for turnover under ₹400 crore; 30% above.
GST Registration: Mandatory for sales; file monthly/quarterly returns.
Dividend Repatriation: 20.55% dividend distribution tax applies .
Annual Filings: Submit financial statements and FC-GPR reports to the RBI.
Why Partner With Us?
End-to-End Online Setup: From registration to bank account opening.
Resident Director Solutions: Avoid penalties with compliant local representation.
Post-Incorporation Support: GST, payroll, and tax filings handled by experts.
FAQs on How a Foreigner Can Register a Company in India
Can a foreigner start a company in India?
Yes, foreigners can start a company in India. They can register a Private Limited Company, Limited Liability Partnership (LLP), or open a Branch Office, Liaison Office, or Project Office, depending on their business needs.
What is the role of an Indian resident director?
Under Indian law, every company must have at least one director who has resided in India for at least 182 days in the previous calendar year. This ensures local representation for regulatory purposes.
Is it mandatory to have an office address in India?
Yes, the company must have a registered office address in India. This address is used for official communications and must be provided during the registration process.
What documents are required for foreign directors and shareholders?
Foreign nationals need to provide:
- Passport (notarized and apostilled).
- Proof of Address (e.g., utility bill or bank statement).
- Passport-sized photograph.
Can a foreign company own 100% shares in an Indian company?
Yes, in most sectors under the Foreign Direct Investment (FDI) policy, foreign entities can own 100% of a company. However, some sectors have restrictions or require prior approval.
Do I need to visit India for company registration?
No, physical presence is not mandatory. The entire process can be completed online, provided all required documents are properly notarized and apostilled.