How to Register a Company in India as a Foreign National (2024 Guide)

India’s growing economy and liberal FDI policies make it an attractive destination for foreign entrepreneurs. However, registering a company as a foreign national or NRI involves specific rules, compliance requirements, and approval processes.

This guide covers eligibility, business structures, step-by-step registration, and key legal considerations for foreign nationals setting up a company in India.

Can Foreigners Register a Company in India?

✅ Yes! Foreign nationals can own 100% of Indian companies in most sectors (except prohibited ones like gambling, real estate).

Allowed Business Structures

Prohibited Structures:
❌ Sole Proprietorship (Only for Indian residents)
❌ Partnership Firm (Unless with Indian partners)

Step-by-Step Registration Process

Step 1: Choose a Business Structure

• Private Limited: Best for fundraising (requires 2 directors, 1 resident Indian).

• LLP: Lower compliance (requires 2 partners, 1 resident Indian).

Step 2: Obtain Digital Signature (DSC) & Director Identification Number (DIN)

• DSC (Class 3): Apply via Indian certifying authorities (NSDL, eMudhra).

• DIN: File Form DIR-3 with:

  • Notarized/Apostilled passport copy

  • Overseas address proof (utility bill/bank statement)

Step 3: Reserve a Company Name

• Submit 1-2 name options via MCA RUN service (avoid sensitive words like “Global” without approval).

Step 4: File SPICe+ Form (INC-32) for Incorporation

• Attach:

  • MOA & AOA (drafted for foreign ownership)

  • Registered office proof (can be rented/virtual)

  • Foreign director’s documents (passport, visa, address proof)

Step 5: Comply with RBI/FEMA Regulations

• Single Master Form (SMF): Report FDI within 30 days of incorporation.

• Foreign Assets & Liabilities (FLA) Return: If foreign ownership > 10%.

Step 6: Open an NRI Bank Account

• NRE/FCNR account for capital infusion.

• Current account for business transactions.

Timeline: 15-20 days (if documents are accurate).

Documents Required

• Foreign Director/Partner:

  • Passport copy (notarized/apostilled)

  • Visa/Residence permit (if applicable)

  • Overseas address proof

• Indian Resident Director/Partner: PAN, Aadhaar, address proof

• Registered Office: Electricity bill + rent agreement/NOC

Key Compliance for Foreign-Owned Companies

Why Choose Financial Munshi for Foreign Company Registration?

✔ RBI/FEMA Compliance Experts – Handle SMF, FLA, and FDI reporting.
✔ Dedicated NRI Support – Bank accounts, taxation, and repatriation guidance.
✔ Fast-Track Incorporation – Get registered in 10-15 days.