Can a foreign company start business in India?

There are mainly two types of entry strategy for foreign businesses in India, registration of a company or establishing a branch/liaison office. Incorporation of a private limited company is the easiest and fastest type of India entry strategy for foreign nationals and foreign companies.

Can a Foreign National start a business in India without being a resident?

A Foreign National need not be a resident to start a business in India, and there are several ways to set up a new business in India.

Can a foreigner be a shareholder in an Indian company?

The NRIs and foreign nationals can have the shareholding in an Indian company, subject to the FDI guidelines in India. Since RBI allows 100\% FDI in various sectors under the automatic route in India, obtaining ownership of shares in an Indian company by an NRI and foreign national is simple.

How can I set up a foreign company in India?

Any foreign company can establish its place of business in India by filing eForm FC-1 (Information to be filed by foreign company). Note: The eForm needs to be digitally signed by authorized representative of the foreign company. There is no need to apply and obtain DIN for Directors of a foreign company.

Can a foreigner be a partner in India?

Yes, an NRI can become a partner in Indian partnership firm and he further can contribute to the capital of the firm subject to certain conditions. For any NRI to become a partner in a partnership firm there is no restriction, however, the law restricts the foreign investment by NRI by way of capital to the firm.

Can foreigners become director in Indian company?

The company law in India does not bar foreign nationals from becoming directors in Indian companies. A foreigner or a non-resident Indian can become an executive or a non-executive/independent director of Indian companies whether public or private.

Can a foreign company have employees in India?

Foreign nationals can be employed by an Indian incorporated entity in India or can be employed overseas and seconded or deputed to an Indian company. Foreign companies can also consider employing consultants directly in India. India has specific legislation in relation to part time contract labour.

Can a foreigner invest in India?

At present, foreign investment into India is permitted via the Automatic Route (i.e., without prior approval from the Reserve Bank of India (RBI)) in most industries or sectors. However certain sectors remain totally prohibited (atomic energy, the lottery business, real estate, gambling, tobacco).

Can a foreign company set up a business in India?

Yes, very much. FDI (Foreign Direct Investment) Policy in India in the last decade has become very liberal and encourage foreign investment. There are many entry modes by which a foreign company can establish an entity in India. The choice of business form entirely depends upon the end goals to be achieved.

Is it necessary to be present in India to register a company?

It is not necessary to be present in India for being appointed as a director or a shareholder. Similarly, the entire process of business registration can be done online and there is no requirement to travel to India or be present physically at any stage.

How to start a company in India as a non-resident?

The documents required by Non-Resident Indian (NRI) to start a company in India are; PAN card/Passport ID proof – Any one – (Aadhar card, Voter ID card, DL, Passport) Address proof of the home country in which the person is residing, i.e. driving license, mobile bill, any government address proof of that country etc.

Can a shareholder become a director of a company in India?

In order to become a Director it is not required ‘to become a Shareholder. A shareholder however can also be a Director. You can also be appointed as a Director in an Indian company wherein you are not a shareholder/owner. Generally, owner/shareholders of business retain the position of Director as well to take important decision of the business.