Company Incorporation for Foreigners in India
100% FDI Compliant | Expert International Business Setup
Expand your global business footprint to India with complete legal compliance under FEMA (Foreign Exchange Management Act) and Companies Act 2013. India welcomes foreign investment with 100% FDI allowed in most sectors through automatic route. Whether you're an overseas entrepreneur, multinational corporation, or NRI looking to establish business operations in India, Lawful Journey provides end-to-end company incorporation services tailored for international clients. Our expertise covers subsidiary registration, branch office setup, liaison office establishment, and project office formation.
With India's $3.7 trillion economy offering tremendous growth opportunities across technology, manufacturing, services, and retail sectors, foreign companies are increasingly choosing India as their investment destination. Our specialized team of Company Secretaries, Chartered Accountants, and FEMA experts ensure your company incorporation is 100% compliant with RBI guidelines, FIPB approvals, and MCA regulations—making your India entry smooth, legal, and strategically sound.
- 100% FDI allowed in most sectors under automatic route—no prior government approval needed
- FEMA and RBI compliance experts ensure legal foreign investment structure
- Dedicated international business specialists with global incorporation experience
- Complete documentation support for visa, banking, and regulatory requirements
Why Choose Company Incorporation for Foreigners?
India offers one of the world's most liberal FDI policies, allowing foreign companies to establish wholly-owned subsidiaries in most sectors without prior government approval. With automatic route FDI permitted up to 100% in sectors like IT, pharmaceuticals, automotive, textiles, and renewable energy, India presents massive opportunities for international businesses. The Government of India has simplified foreign investment procedures, reduced compliance burden, and introduced single-window clearances to attract global investors and multinational corporations.
World's 5th Largest Economy
India's GDP of $3.7 trillion and growing middle class of 300+ million consumers offers tremendous market potential. With digital adoption rates among the highest globally and government initiatives like Digital India, Make in India, and Startup India, foreign companies find excellent growth opportunities across sectors.
100% FDI in Most Sectors
Automatic route FDI up to 100% in sectors including IT services, e-commerce marketplace, pharmaceuticals, automobiles, textiles, and renewable energy. Government route approval available for defense, broadcasting, and other strategic sectors with streamlined approval processes.
Robust Legal Framework
Companies Act 2013, FEMA 1999, and Income Tax Act provide comprehensive legal structure for foreign businesses. Strong intellectual property protection, contract enforcement mechanisms, and independent judiciary ensure business security for international investors.
Skilled Talent Pool
Access to 500+ million English-speaking workforce, world-class technical talent from IITs and IIMs, and cost-effective skilled labor. India produces 4+ million graduates annually including 1.5 million engineers, providing companies with exceptional human capital.
Tax Benefits & Incentives
Corporate tax rate reduced to 25% for companies with turnover up to ₹400 crores. New manufacturing companies can opt for 15% tax rate. Additional benefits include SEZ incentives, export promotion schemes, and state-specific investment incentives.
Strategic Geographic Location
Gateway to South Asian markets with access to 1.4 billion consumers. Excellent connectivity to Middle East, Southeast Asia, and Africa. World-class ports, airports, and logistics infrastructure support international trade and business operations.
Who Can Incorporate a Company in India?
Foreign individuals, companies, and investment funds can incorporate companies in India subject to FEMA regulations and sectoral caps. Whether you're a tech entrepreneur from Silicon Valley, a manufacturing company from Germany, or an investment fund from Singapore, India welcomes foreign investment with streamlined procedures and attractive incentives.
Foreign Nationals Eligibility
- Any foreign citizen can be director/shareholder in Indian company (valid passport required)
- NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) have additional investment flexibility
- At least one Indian resident director mandatory as per Companies Act 2013 Section 149
- Foreign directors need DIN (Director Identification Number) from Ministry of Corporate Affairs
- No minimum investment amount required for most sectors under automatic route
- Multiple foreign nationals can jointly incorporate company with proper FEMA compliance
Foreign Corporate Entities
- Overseas companies can establish wholly-owned subsidiaries in India
- Joint ventures with Indian companies allowed with shared ownership structure
- Investment funds, PE firms, VCs can invest in Indian companies subject to sectoral limits
- Branch offices for liaison, research, or specific project activities (RBI approval required)
- Liaison offices for market research and business development (no commercial activities)
- Project offices for executing specific contracts in India (time-bound operations)
Sectoral FDI Limits & Routes
- Automatic Route (100% FDI): IT services, pharmaceuticals, automobiles, textiles, renewable energy, food processing
- Automatic Route (up to sectoral cap): Banking (74%), insurance (74%), telecommunications (100%), civil aviation (100%)
- Government Route: Defense (74%), broadcasting (49%), print media (26%), multi-brand retail (51%)
- Prohibited sectors: Lottery, gambling, chit funds, nidhi companies, real estate (except development)
- Special conditions: E-commerce marketplace (100%), single-brand retail (100% with conditions)
- Minimum capitalization: Required for certain sectors like banking, insurance, and NBFCs
Types of Business Entities
- Private Limited Company: Most popular for subsidiaries, joint ventures, and wholly-owned operations
- Public Limited Company: For large investments, IPO plans, or significant market presence
- One Person Company: Available for foreign nationals, suitable for small businesses
- Limited Liability Partnership: For professional services with foreign partnership
- Branch Office: Extension of foreign company for specific activities (RBI approval mandatory)
- Representative/Liaison Office: For market research and business promotion only
Step-by-Step Foreign Company Incorporation Process in India
FEMA Compliance Consultation
Our FEMA experts analyze your business model, determine optimal investment structure, and ensure compliance with RBI guidelines. We assess sectoral FDI limits, investment routes (automatic vs government), and structure foreign investment for tax efficiency and regulatory compliance while planning for future funding rounds.
Regulatory Structure Planning
Determine the most suitable business entity (subsidiary, branch office, or liaison office) based on your business activities, investment amount, and long-term India strategy. We help you understand FIPB approvals, if required, and plan shareholding structure for optimal tax and compliance benefits.
Digital Signature & DIN for Directors
Obtain Class 2 DSC for all proposed directors (Indian and foreign) and DIN (Director Identification Number) through MCA portal. Foreign directors need to submit passport, visa, and address proof from their country of residence. We facilitate the entire process with door-to-door document collection if needed.
Indian Resident Director Appointment
As per Companies Act Section 149, at least one director must be Indian resident. We can provide qualified Indian resident directors if needed, or help formalize appointment of your Indian business partners, employees, or local representatives as directors with proper agreements and documentation.
Company Name Reservation
Reserve unique company name through RUN (Reserve Unique Name) application with MCA. We ensure the proposed name complies with MCA guidelines, doesn't conflict with existing trademarks, and reflects your business activities. Name approval typically takes 1-2 working days with our expert assistance.
MOA & AOA Drafting with FEMA Compliance
Draft Memorandum and Articles of Association with specific clauses for foreign investment compliance, including FEMA provisions, foreign exchange reporting requirements, and dividend repatriation procedures. Our legal experts ensure documents support future business expansion and funding requirements.
Document Compilation & Verification
Compile and verify all required documents including passport copies, visa documents, address proofs from foreign directors' countries, registered office documents, and parent company papers (if applicable). Our team ensures all foreign documents are properly notarized and apostilled as required.
SPICe+ Filing with Foreign Investment Details
File comprehensive SPICe+ form with MCA including foreign investment details, source of funds declaration, and FEMA compliance statements. This integrated form covers company incorporation, foreign investment reporting, PAN/TAN application, and initial director appointments in one streamlined process.
Foreign Investment Reporting & Banking
Complete mandatory foreign investment reporting with RBI through FC-GPR form, open corporate bank account with foreign investment documentation, and ensure proper fund transfer procedures from overseas. We coordinate with banks for smooth account opening and FEMA-compliant fund transfers.
Post-Incorporation Compliance Setup
Establish comprehensive compliance framework including FEMA annual returns (FC-TRS), advance remittance reporting, transfer pricing documentation (if applicable), and ongoing foreign exchange compliance. We provide dedicated compliance calendar and expert support for all regulatory requirements.
Documents Required for Foreign Company Incorporation
Foreign Directors/Shareholders Documents
- Valid Passport: Current passport with at least 6 months validity (notarized and apostilled copy)
- Visa Documents: Valid Indian visa (business/employment/entry visa as applicable)
- Address Proof from Home Country: Utility bill, bank statement, or government ID from country of residence (notarized and apostilled)
- Passport-size Photographs: Recent colored photographs in digital format with white background
- Bank Account Statement: Latest 3-month bank statement from home country showing financial standing
- No Objection Certificate: NOC from current employer (if employed) allowing directorship in Indian company
Foreign Corporate Investor Documents
- Certificate of Incorporation: Original incorporation certificate from country of incorporation (apostilled)
- Articles/Memorandum of Association: Constitutional documents of the foreign company (apostilled and translated if not in English)
- Board Resolution: Resolution authorizing investment in Indian subsidiary and appointing representatives
- Financial Statements: Latest audited financial statements showing financial capability for investment
- Good Standing Certificate: Certificate from relevant authority confirming company is in good standing
- Tax Clearance Certificate: Tax compliance certificate from home country tax authorities
Indian Registered Office Documents
- Property Documents: Sale deed, lease deed, or property registration documents for registered office
- Utility Bills: Latest electricity, water, or gas bill in property owner's name
- Rent Agreement: Registered rent agreement with landlord (if premises is rented)
- Property Owner NOC: No Objection Certificate from landlord for using premises as registered office
- Property Tax Receipt: Latest municipal property tax payment receipt
- Society/Association NOC: Permission from housing society or resident association (if applicable)
Indian Resident Director Documents
- PAN Card: Permanent Account Number card issued by Income Tax Department
- Aadhaar Card: Unique Identification Number card for identity verification
- Address Proof: Utility bill, bank statement, or rental agreement (not older than 2 months)
- DIN Certificate: Director Identification Number if already obtained, otherwise we'll apply
- Photograph: Recent passport-size colored photograph with signature
- Consent Letter: Written consent to act as director with terms and conditions
Why Choose Lawful Journey?
International Business Expertise
Specialized team with 10+ years experience in foreign company incorporations, FEMA compliance, and cross-border business setup. We've successfully incorporated 500+ foreign companies across sectors including technology, manufacturing, pharmaceuticals, and financial services with clients from USA, UK, Singapore, Germany, Japan, and other countries.
Complete FEMA & RBI Compliance
Expert guidance on Foreign Exchange Management Act (FEMA), RBI master directions, and foreign investment regulations. Our team ensures 100% compliance with automatic route FDI limits, government route approvals, foreign exchange reporting (FC-GPR, FC-TRS), and ongoing regulatory requirements to avoid penalties and legal issues.
End-to-End India Market Entry
Comprehensive services beyond incorporation including GST registration, import-export license, FSSAI certification, labor compliance, intellectual property protection, banking relationships, tax planning, and ongoing business support. We serve as your complete India business partner from entry to expansion.
Time Zone Friendly Support
Dedicated international client support team available across time zones to serve clients in USA, Europe, Middle East, and Asia-Pacific. Schedule consultations at your convenience, get real-time updates via WhatsApp/email, and access our client portal 24/7 for document tracking and status updates.
Global Network & Local Presence
Strategic partnerships with law firms, accounting firms, and business consultants in major countries for seamless documentation, apostille services, and overseas compliance. Combined with strong local presence across major Indian cities including Mumbai, Delhi, Bangalore, Chennai, Hyderabad, and Pune.
Risk Management & Strategic Planning
Comprehensive risk assessment, tax optimization strategies, transfer pricing planning, and exit strategy formulation. We help structure your India investment for maximum benefits while ensuring compliance with both Indian regulations and international tax treaties, BEPS guidelines, and home country requirements.
Frequently Asked Questions
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Yes, 100% foreign-owned subsidiaries are permitted in most sectors under the automatic route including IT services, pharmaceuticals, automobiles, textiles, renewable energy, and manufacturing. However, at least one director must be an Indian resident as per Companies Act 2013. Certain sectors like defense, broadcasting, and multi-brand retail have FDI caps and may require government approval.
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There is no minimum investment amount for most sectors under automatic route FDI. You can incorporate with any capital amount suitable for your business. However, certain regulated sectors like banking, insurance, and NBFCs have minimum capitalization requirements. For example, foreign banks need minimum ₹500 crores, and insurance companies need ₹100 crores paid-up capital.
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Automatic route allows foreign investment without prior approval in most sectors up to 100% FDI. Government route approval is required for sectors like defense (above 49%), broadcasting, print media, multi-brand retail, and airlines (above 49%). Our experts determine the applicable route and handle approval processes if required.
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Foreign investors can freely repatriate dividends, profits, and capital subject to tax deductions and FEMA compliance. Dividend distribution tax has been abolished, but dividends are taxable in hands of recipients. Capital gains on share transfers are subject to securities transaction tax and capital gains tax. Proper documentation and RBI reporting through authorized dealer banks is mandatory.
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Key compliances include annual MCA filings (AOC-4, MGT-7), income tax returns, GST returns, FEMA annual returns (FC-TRS), transfer pricing documentation (if transactions exceed ₹1 crore), statutory audit, and board meetings. Foreign companies must also comply with advance remittance reporting, foreign investment reporting, and maintain proper books of accounts as per Indian accounting standards.
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Yes, foreign directors can participate in board meetings via video conferencing as per Companies Act provisions. However, at least one board meeting per quarter must have physical attendance of directors. Foreign directors should visit India periodically for business purposes and maintain proper documentation of their involvement in company management for regulatory compliance.
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Indian companies pay corporate tax at 25-30% depending on turnover. New manufacturing companies can opt for 15% tax rate. Foreign companies also pay dividend distribution tax, capital gains tax, and may be subject to transfer pricing regulations. India has tax treaties with 90+ countries providing relief from double taxation. Proper tax planning can significantly optimize your tax burden.
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With proper documentation, incorporation takes 10-15 working days for automatic route investments. Government route approvals may take 2-4 months additional time. The process includes name reservation (1-2 days), DIN and DSC (3-5 days), incorporation filing (5-7 days), and post-incorporation formalities (2-3 days). Our expedited service can complete incorporation in 7-10 days.
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Yes, at least one Indian resident director is mandatory. Lawful Journey can provide qualified, experienced Indian resident directors with proper agreements defining roles, responsibilities, and limitations. We ensure complete transparency and protect your interests while meeting regulatory requirements. Our nominee directors are professionals with clean track records.
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We provide comprehensive post-incorporation support including statutory compliance, accounting and bookkeeping, tax filing, FEMA reporting, GST registration, import-export licensing, trademark registration, business licensing, payroll management, and ongoing legal advisory. Our clients get dedicated relationship managers and priority support for all business needs in India.
Start Your Business Journey Today
Get a free consultation with a Lawful Journey expert. We’ll help you choose the right structure, explain the process, and get your company incorporated—fast, legally, and stress-free.
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