India Market Entry · Ex-Big 4

Foreign Company Registration
in India – Complete Guide

How to register a foreign company in India – entity types, FDI routes, RBI filings, and compliance timelines. Ex-Big 4 CA team. 100+ foreign companies registered.

What it is

Foreign company registration in India

Registering a foreign company in India is not a single form – it is a multi-step process involving the Ministry of Corporate Affairs (MCA), the Reserve Bank of India (RBI), and in most cases, the GST department and income tax authorities. The process differs significantly depending on the entity type you choose and the FDI route applicable to your sector.

The right structure must be decided before any filing begins. Choosing incorrectly – for example, setting up a branch office in a sector that requires a subsidiary – creates expensive restructuring work later. Getting the transfer pricing model wrong at incorporation means years of audit exposure.

India has four main options for foreign companies entering the market: a Private Limited Company (wholly owned subsidiary), a Limited Liability Partnership, a Branch Office, or a Liaison Office. Each has different tax rates, FDI conditions, revenue permissions, and compliance obligations.

Four ways a foreign company can be registered in India

Private Limited Company (WOS)

Tax rate25.17%

FDI routeAutomatic in most sectors

RevenueFull commercial

Best for: Most foreign companies – full operations, fundraising, hiring

Limited Liability Partnership

Tax rate30%

FDI routeGovernment approval required

RevenueFull commercial

Best for: Professional services firms, JVs with Indian partners

Branch Office

Tax rate40%

FDI routeRBI approval required

RevenueLimited – only parent's activities

Best for: Exporting goods/services, research only

Liaison Office

Tax rateNil

FDI routeRBI approval required

RevenueNone – no commercial activity

Best for: Market research, promoting parent company only

* Most foreign companies choose a Private Limited Company (WOS). Branch and Liaison offices are rarely the right choice without a specific reason.

Step-by-step: how foreign company registration works

Structure & FDI analysisDay 1

We assess your business model, sector, and India objectives to recommend the right entity type and FDI route, including DTAA and PE risk analysis. Free as part of the initial consultation.

Digital Signatures (DSC)Days 2–3

All proposed directors require DSCs. For foreign nationals, this requires passport copy, address proof, and notarisation. We handle the filing.

Director ID (DIN)Days 3–5

Each director requires a DIN from MCA. For foreign directors, we file Form DIR-3 with apostilled documents.

Name reservationDays 4–6

Company name is reserved through MCA's RUN system. We check trademark conflicts and regulatory restrictions before submission.

SPICe+ filingDays 6–14

The main incorporation form – includes MOA, AOA, registered office, PAN, TAN, and GSTIN application. Certificate typically issues within 7–12 working days.

RBI FCGPR filingWithin 30 days

Foreign Currency Gross Provisional Return – mandatory for all foreign investment under FEMA. We file via the RBI's FIRMS portal.

Bank & post-setupWeeks 3–5

Current account, GST registration, TDS registration, payroll setup, and a compliance calendar handed over ready to use.

How it works in practice

USA · SaaS Company · Series B

Cloud analytics platform registered in India in 19 days

The Challenge

The company needed an India entity before their first engineering hire arrived in Bangalore. Time pressure was significant – payroll had to be live within the month.

What We Delivered

Private limited company incorporated, FCGPR filing completed, transfer pricing policy documented, first payroll run – all within 30 days of engagement.

TP documentation completed in week 2, before a single hire was made. No audit exposure from day one.

What foreign companies get wrong

Choosing the wrong entity type

Many foreign companies default to a branch office because it sounds simpler. In practice, a branch pays 40% tax, has restricted revenue activities, and requires RBI approval. A Private Limited Company is almost always better.

Not setting up transfer pricing before the first intercompany transaction

Transfer pricing documentation is legally required from the first payment between the India entity and its foreign parent. Companies that get this wrong at incorporation face back-audits and penalties up to 2x the underpaid tax.

Missing the FCGPR 30-day filing window

FEMA requires the FCGPR to be filed within 30 days of share allotment. Missing this deadline requires a compounding application – a formal RBI regularisation process that takes months and attracts penalties.

Registering in a sector with FDI restrictions without checking

Some sectors require Government approval route FDI. Registering under the automatic route in a restricted sector voids the investment and requires a costly restructuring.

Engagement Models · USD

Simple, transparent pricing.

Fixed fees. No hidden billings. Choose the engagement that matches where you are.

NRI company registration in India

For NRIs investing in or starting a company in India under the FEMA NRI route.

Starter

Starts at

$180one-time

Core incorporation for an NRI-owned entity, filed correctly under the right FEMA route.

What's included

✓NRI route check
✓Name reservation
✓MOA/AOA
✓SPICe+
✓DIN/DSC for up to 2 directors
✓Certificate of Incorporation
✓PAN
✓TAN
✓PF/ESI

Frequently asked questions

Yes – in most sectors, 100% FDI is permitted under the Automatic Route. This means no prior Government approval is needed. Restricted sectors (defence, insurance, media) have lower caps. We check FDI eligibility as the first step of every engagement.

Yes. At least one director of the Indian company must be a resident of India (present in India for at least 182 days in the previous calendar year). This can be a nominee director – we can help arrange one if needed.

Yes there is a statutory minimum paid up capital required to start a company in India i.e Rs. 100,000 (USD – 1100 approximately)

For a straightforward Private Limited Company with Indian directors and no restricted sector issues, incorporation typically takes 14–21 working days from document submission. The Certificate of Incorporation from MCA issues in 7–12 working days once the SPICe+ is filed.

Certificate of Incorporation of the parent, Memorandum & Articles of Association, Board Resolution authorising India incorporation, KYC documents (passport, address proof) for all proposed directors, and apostilled copies where required by MCA.

Yes – a registered office address in India is mandatory for incorporation. This can be a virtual/registered address initially. Many clients start with a virtual office and upgrade to physical space once the team grows.

Foreign Company Registrationin India – Complete Guide