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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.

Setting up a business as a local (Indian)? Click here

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.

Lower Corporate Tax

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

Young Talent Pool

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

Big Native Market

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

Overview of the Company Incorporation for Foreigners in India

Regulation
  • The Companies Act 2013
  • Companies (Incorporation) Rules, 2014
  • FDI Policy of India
Prof FeeUSD 500
Govt FeeDepends on number of directors, proposed capital & state
Total CostContact us; we will provide an all-inclusive cost of Incorporation
TimelineThe company incorporation takes one to two weeks after receipt of complete, duly legalised documentation. Please see the legalisation section below.
Process100% 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.

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

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.

CriteriaPrivate CompanyLLP
Constitution DocumentsCertificate of Incorporation Issued by ROC, Memorandum & Articles of Association.Certificate of Incorporation Issued by ROC and the LLP Agreement between the partners
FDIFDI is 100% allowed in most sectors. However, limited FDI is allowed in strategic sectors such as Media, Housing, etc.FFDI is allowed only in those sectors where 100% FDI is allowed.
TaxationThe corporate tax rate is 15% for manufacturing and 22% for new Companies.The Income Tax rate of the LLP in India is 30%
IncorporationRelatively EasyAfter Incorporation, the LLP Agreement is executed in hard copy and, therefore, complicated.
ComplianceCompliance is higher to ensure transparency and corporate governance.Lower than that of the Company.

Eligibility to Incorporate the Company in India

  • 2 to 200 Shareholders

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

  • 2 to 15 Directors

    Directors are responsible for operating the business and ensuring compliance.

  • 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.

  • Pre-Defined Capital

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

  • 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

  1. Passport: The passport of the foreign shareholder or director is a mandatory document for foreigners incorporating a company.

  2. 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.

  3. 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

  1. 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.

  2. PAN Card: The PAN card is mandatory for all Indian promoters. The name on the PAN card must match all other documents.

  3. 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.

  4. 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

  5. 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

  1. 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.

  2. 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.

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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.ParticularsLegalisation Method
1.Persons Visiting IndiaIf 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 NationsDocuments 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 SignatoriesThe 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 CountriesApplicants 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.

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

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

Q1.Why is India a good place to start a company?
Q2.What tax benefits do companies get when starting a company in India?
Q3.What legal compliances are required to run a company in India?
Q4.Does a foreigner need to visit India to establish a company?
Q5.Can foreigners hold 100% shareholding?