Introduction
India has long been a strategic market for global businesses. But until recently, complex regulatory requirements made entry difficult—especially for startups and foreign-owned companies. In response, the Government of India introduced the Companies (Amendment) Act, 2015, aiming to simplify company law, promote entrepreneurship, and improve ease of doing business.
This amendment significantly reduced entry barriers for foreign investors and non-resident founders looking to incorporate a company in India.
Key Changes Introduced in the 2015 Amendment Act
1. Removal of Minimum Paid-Up Capital Requirement
Under the original Companies Act, 2013:
A private limited company required a minimum paid-up capital of ₹100,000 (1 lakh)
A public limited company required ₹500,000 (5 lakh)
The Companies (Amendment) Act, 2015 abolished these limits. This enabled foreign founders to incorporate without locking significant funds at incorporation—an especially helpful move for:
Global startups expanding into India
Wholly-owned subsidiaries of foreign firms
Non-resident individuals entering the Indian market
🔗 See Gazette Notification: Companies (Amendment) Act, 2015 (PDF)
2. Substitution of Company Seals with Signatures
Before the amendment, companies were required to use a common seal (a physical company stamp) to validate official documents like share certificates and board resolutions.
The 2015 amendment made the use of company seals optional. Now, authorized signatures of directors or officers suffice to execute official documents. This change drastically reduced procedural delays and made remote document handling easier—especially for overseas directors and companies without a local physical presence.
📝 Legal Reference:
This reform is detailed in Section 9 of the Companies (Amendment) Act, 2015, and was officially notified by the Ministry of Corporate Affairs in the Gazette of India.
Additional Impacts for Foreign Companies
No capital lock-in at registration
Simplified documentation for remote founders
Improved procedural efficiency for international legal compliance
Together, these reforms positioned India as a more welcoming jurisdiction for foreign entities and tech companies seeking low-friction market entry.
Conclusion
The 2015 Companies (Amendment) Act signaled a bold step forward in aligning Indian corporate law with international best practices. As an official partner of Startup India and legal advisors to global clients including OpenAI, Wix, Tokopedia, and several listed companies from the U.S. and Europe, we’ve helped over 300 foreign companies set up operations in India using these very reforms.