Is it Easy for a Foreigner to set up a Company in India?


Being one of the fastest-growing economies in Asia and the world, it comes to no surprise that the number of businesses is massively increasing in India. The same goes for the FDI- the big market with billions of population and low costs, including other reasons like easy trade routes and ongoing economic reforms have been making India among the top choices for international investors.

The first step to starting a business in India is to set up a company. We look at some FAQs that foreigners may have.

What is the Available Company Type in India for Foreigners?

As a foreigner, you need to start a private limited company. You need to fulfil these requirements to register a company as PVT Ltd. in India.

  • A company name that is not vulgar, offensive, and not too similar to existing firms.
  • A minimum of two directors. At least one director should be an Indian Resident, i.e., lived in India continuously for at least 182 days before the registration.
  • The maximum number of directors in an Indian company is 15.
  • An indian private limited company needs at least two shareholders in the beginning, and can have upto 200 shareholders. The shareholder can be a natural person or a registered business, which can be based outside India.
  • Having a company secretary is going to be very helpful for a private limited company.

How Can Foreigners Register their Company in the Easiest Way?

The process for opening a company in India is streamlined as compared to other economies, but the registration process still comes with a lot of complexities. First, you need to obtain a digital signature and file incorporating India company forms. After that you have to register under the Shop and Establishment Act then open a current account and Register for GST.

You again need to apply for the Directors Identification Number, get Articles of Association, and prepare executive’s signatures and many more.

Being a foreigner, understanding and going through the process is going to be difficult and time-consuming.

So your best bet would be to work with a good company providing India company incorporation services.  For example, 3E Accounting India. They will take your requirements and then register your company for you, while you focus on the core business plan.