Market entry for overseas businesses
Foreign Company Setup in India, with FDI, RBI and MCA compliance handled for you
Foreign Company Setup in India can mean a wholly owned subsidiary, a joint venture, a branch office, a liaison office or a project office. BizSetups Consulting guides you to the right route, then handles incorporation, FDI and RBI filings and tax registrations, 100% online.
- 100% online and paperless
- FDI, FEMA and RBI filings handled
- Registration in about 7 to 12 days
- Dedicated expert from start to finish
How can a foreign company set up in India?
A foreign company can enter India by incorporating a wholly owned subsidiary or joint venture company, or by opening a branch, liaison or project office. Each route has its own permitted activities, approvals and tax treatment. Whether 100% foreign ownership is allowed depends on the sector and the FDI policy. Most sectors permit it under the automatic route, with reporting to the RBI after investment.
Choose your route
Five ways to enter the Indian market
Pick the structure that matches what you plan to do in India. Our team confirms the rules for your sector before you commit.
Wholly owned subsidiary
An Indian private limited company held fully by the foreign parent, where the sector allows it. A separate legal entity that can trade, hire and invoice.
Joint venture
A company or LLP shared with an Indian partner. Useful where local knowledge, licences or sector caps matter.
Branch office
An extension of the foreign company for permitted activities such as export, import, consultancy or research. Needs approval and registration.
Liaison office
A representative office for communication and market research only. It cannot earn income in India.
Project office
A temporary office for a specific project contract won in India. Approval conditions depend on the contract and funding.
LLP with foreign partners
Possible where FDI is allowed under the automatic route without performance linked conditions. Lighter compliance than a company.
Registration process
Foreign company registration in India, step by step
Nine stages from choosing a structure to opening the Indian bank account. Many stages run in parallel.
- 1
Choose the business structure
Day 1We map your activity, funding and sector against FDI policy and recommend the route.
- 2
Name approval
Day 2 to 3The company name is reserved on the MCA portal under the naming rules.
- 3
Digital Signature Certificate
Day 2 to 5DSC for each director and subscriber, needed to sign forms online.
- 4
DIN allotment
With filingDirector Identification Number for foreign and Indian directors.
- 5
MOA and AOA drafting
Day 4 to 5Charter documents that define the business objects and internal rules.
- 6
Incorporation filing with MCA
Day 5 to 8SPICe+ filing with attachments, followed by Registrar review.
- 7
RBI and FDI compliance filing
After share allotmentReporting of the foreign investment through the authorised dealer bank, as FEMA requires.
- 8
PAN, TAN and GST
Day 8 to 12Tax registrations for the new entity, with GST where applicable.
- 9
Corporate bank account
After incorporationGuidance on opening the Indian current account to receive the investment.
Timelines depend on Registrar approval, RBI and bank processing, and how soon apostilled documents reach us.
Compare routes
Subsidiary vs branch office vs liaison office vs project office
A general comparison. Exact permissions depend on your sector, the FDI policy and RBI conditions in force.
| Feature | Wholly owned subsidiary | Branch office | Liaison office | Project office |
|---|---|---|---|---|
| Legal status | Separate Indian company | Extension of the foreign company | Extension of the foreign company | Extension of the foreign company |
| Can earn income in India | Yes | Yes, for permitted activities | No | Yes, from the specific project |
| Liability of the parent | Limited to its shares | Parent is liable for the branch | Parent is liable | Parent is liable |
| Approval route | Automatic route in most sectors | RBI approval via authorised dealer bank | RBI approval via authorised dealer bank | Depends on the contract and conditions |
| Registration with RoC | Incorporated under Companies Act | Required as a foreign company | Required as a foreign company | Required as a foreign company |
| Best suited for | Long-term operations, hiring, local sales | Trading, consultancy, research linked to the parent | Market study and liaison | Time-bound contracts |
Tax treatment differs between a company and an office of a foreign company. Confirm with an expert for your case.
Why set up in India
Benefits of Foreign Company Setup in India
India is a large market with a deep talent pool. A properly structured entity makes it easier to use both.
FDI friendly in most sectors
Up to 100% foreign investment is permitted in most sectors under the automatic route. Some sectors have caps or need approval.
Limited liability
A subsidiary company limits the parent's risk to its investment in the shares.
Separate legal identity
The Indian entity signs contracts, owns assets and employs people in its own name.
Profit repatriation
Profits can be sent abroad as dividends under RBI and FEMA guidelines, after taxes and statutory compliance.
Tax and incentives
Corporate tax treatment and government incentives depend on the structure, sector and location.
Local credibility
Customers, banks and vendors deal more easily with a locally incorporated company.
Documents required
Documents required for foreign company registration
Scanned copies are enough to start. Foreign documents usually need to be translated into English if needed, notarised and apostilled or consularised.
Foreign directors and foreign company
- Passport copy and address proof of each foreign director
- Bank statement or utility bill, business visa and proof of stay where applicable
- Recent photograph, not older than 6 months
- MOA and AOA or equivalent of the foreign company
- List of directors and shareholders, with identity documents
- Tax ID documents, latest bank statement, audited financials and net worth certificate
Notarisation
Foreign documents are notarised and apostilled or consularised, depending on the country.
Indian side and registered office
- Indian directors: self-attested PAN and Aadhaar, photograph, utility bill or bank statement under 2 months old
- Indian corporate shareholder, if any: PAN, certificate of incorporation, MOA and AOA, bank statement, board resolution and director documents
- Registered office: lease or rent agreement and a utility bill under 2 months old
- No-objection certificate from the owner, with the owner's PAN or Aadhaar, or company COI and PAN
We check every file
Complete documents up front reduce Registrar queries and rework.
After setup
Compliance a foreign-owned entity must plan for
Setting up is the start. These are the recurring areas to keep in order. Due dates depend on your structure and year end, so confirm them for your case.
FEMA and RBI reporting
Inward remittance and share allotment are reported through the authorised dealer bank within the time FEMA rules prescribe.
Foreign liabilities and assets return
Companies that have received foreign investment file an annual return with the RBI.
ROC filings
Financial statements and annual return, plus director KYC, under the Companies Act.
Income tax and TDS
Income tax return, TDS returns and, where applicable, transfer pricing documentation.
GST, payroll and registers
GST returns, PF and ESI where applicable, board meetings and statutory registers.
Complete guide
Everything you need to know about Foreign Company Setup in India
What does Foreign Company Setup in India involve?
Foreign Company Setup in India means creating a legal presence in the country so that an overseas business can sell, hire, own assets and bank locally. The right structure depends on what you plan to do. A company that wants to sell, employ staff and invoice customers usually forms a subsidiary. A company that only wants to study the market may open a liaison office. BizSetups Consulting handles the whole process online, from structure advice to filings, so that you do not need to visit offices in India.
Three bodies matter most. The Ministry of Corporate Affairs governs company incorporation and annual filings. The Reserve Bank of India and the Foreign Exchange Management Act govern how money comes in and goes out. The government’s FDI policy decides which sectors are open and on what conditions.
Wholly owned subsidiary and joint venture
A wholly owned subsidiary is a private limited company whose shares are held by the foreign parent. It is a separate legal entity, so the parent’s liability is limited to its investment. A private company needs at least two directors and two shareholders, and at least one director must be resident in India, which means a stay of 182 days or more in the previous year. A joint venture follows the same company law, but a local partner holds part of the shares. Read our page on the Indian subsidiary company setup for a closer look at this route, or see how a standard private limited company works.
Branch office, liaison office and project office
These are offices of the foreign company and not separate Indian entities. A branch office can carry on permitted activities such as export and import, professional or consultancy services, research work linked to the parent, and similar activities. A liaison office can only act as a communication channel and cannot earn income in India. A project office is meant for a specific project awarded in India. Approvals usually come through an authorised dealer bank and the RBI, and the office is also registered with the Registrar of Companies as a foreign company. Permitted activities and conditions change from time to time, so we confirm them on the RBI website before filing.
LLP with foreign partners
A Limited Liability Partnership is another route. Foreign investment in an LLP is allowed only in sectors where 100% FDI is permitted under the automatic route and there are no FDI linked performance conditions. It has lighter compliance than a company but cannot issue shares to investors. Our LLP setup page explains the structure in detail.
FDI, FEMA and RBI reporting at a glance
Foreign investment in most sectors comes under the automatic route, which does not need prior government approval. Some sectors have a cap on foreign ownership, some need government approval and a few are prohibited. Investors from countries that share a land border with India need government approval, under current policy. All of this depends on sector and FDI policy, so we check the latest rules for you.
After money is received and shares are allotted, the company reports the transaction to the RBI through its authorised dealer bank. Share pricing must follow FEMA pricing guidelines. The company also files an annual return on foreign liabilities and assets. Our RBI compliance consultancy team handles these filings.
Documents and registered office
Foreign directors and the foreign company provide passports, address proof, constitutional documents, audited financials and similar records. These documents are usually notarised and apostilled or consularised. Indian directors provide PAN and Aadhaar. The company needs a registered office in India, supported by a lease or rent agreement, a recent utility bill and a no-objection certificate from the owner. If you do not yet have a premises, tell us early, because the address is needed at the time of filing.
Cost of Foreign Company Setup in India
There is no single price. Costs vary by structure and sector, and by government fees, stamp duty in the state of the registered office, digital signatures and the number of directors. BizSetups prepares a custom package after understanding your plan. GST is charged extra on professional fees. Book a call and we will share a clear quote before you start.
Registration after incorporation: tax, payroll and books
Once the entity exists, you need PAN, TAN, GST where applicable, PF and ESI registrations for employees and a proper accounting setup. We support this through GST consultancy, annual MCA compliance, HR and payroll consultancy and bookkeeping and accounting. For cloud accounting we implement Zoho Books, as described on our Zoho Books implementation page.
Common mistakes to avoid
- Opening a liaison office and then trading through it, which it is not permitted to do.
- Assuming 100% FDI is open in every sector without checking the caps and conditions.
- Skipping the post-investment report to the RBI or filing it late.
- Sending foreign documents that are not notarised or apostilled.
- Appointing no resident director in a company that needs one.
Share your plan on a call and we will confirm the structure, the approvals and the documents you need. You can also read our business setup guides.
Why BizSetups
Why foreign businesses choose BizSetups
- 100% online and paperlessShare documents digitally and approve filings without visiting an office.
- Registration in about 7 to 12 daysTiming depends on approvals, and we keep you updated at every stage.
- FDI, FEMA and RBI expertiseFilings with the MCA and the RBI are handled by one team.
- Transparent pricingCustom packages are quoted for your structure and sector before you commit.
- Dedicated support after setupHelp with business address or factory leasing, factory compliance, HR and payroll, accounting and annual compliance.
Speak with our experts today
Tell us your plan and we will confirm the right route, timeline and cost on the call.
+91 92788 13303FAQ
Frequently asked questions on Foreign Company Setup in India
Short answers to the questions founders ask most.
Can a foreign company own 100% of its Indian subsidiary?
Yes, in most sectors. Under the automatic route, foreign investment of up to 100% is allowed without prior government approval. Some sectors have a cap or need approval, and a few are prohibited, so the answer depends on the sector and the FDI policy. We check the rules for your activity before filing.
How long does Foreign Company Setup in India take?
It usually takes about 7 to 12 business days, depending on approvals. Timing depends on Registrar review, how soon notarised and apostilled documents are ready, and any queries raised. Branch and liaison offices also need RBI approval through a bank, which can add time.
What compliance applies to a foreign-owned company in India?
Compliance covers MCA, RBI, FDI and FEMA rules. The company files annual financial statements and returns with the Registrar, reports foreign investment to the RBI through its bank, files an annual foreign liabilities and assets return, and meets tax, GST and payroll obligations.
Is an Indian director required?
Yes. Under the Companies Act, at least one director of the company must be resident in India, meaning a stay of 182 days or more in the previous year. Foreign nationals can be other directors. A private company also needs at least two directors in total.
Can profits be repatriated to the foreign parent?
Yes. Profits can be remitted abroad, usually as dividends, under RBI and FEMA guidelines. The company must first meet its tax and statutory obligations, and the bank checks the supporting documents. Other routes, such as royalty or service fees, have their own conditions.
Can a foreign company operate in India without registering?
No. A foreign company that establishes a place of business in India must register with the Registrar of Companies. Operating through a subsidiary company means incorporating it under the Companies Act. Doing business without the required registration can lead to penalties under the law.
What is the difference between a branch office and a subsidiary?
A subsidiary is a separate Indian company, so the parent's liability is limited to its shares. A branch office is an extension of the foreign company, which stays liable for it, and is limited to permitted activities. A subsidiary suits long-term operations and hiring.
Can a liaison office earn income in India?
No. A liaison office can only represent the parent, promote its products and collect market information. It cannot carry out commercial activity or earn income in India, and its expenses are met from funds sent from abroad. It usually needs RBI approval through an authorised dealer bank.
Which documents are needed from the foreign company?
Typically the constitutional documents, a list of directors and shareholders with identity proof, tax ID documents, the latest bank statement, audited financials and a net worth certificate. Foreign documents are usually notarised and apostilled or consularised, and translated into English if needed.
How much does it cost to set up a foreign company in India?
Cost varies by structure and sector, and BizSetups offers custom packages on request. The main parts are the professional fee, government fees and stamp duty, digital signatures and tax registrations. Contact us with your plan and we will share a clear quote.
Which sectors are restricted for foreign investment?
Some sectors are prohibited for foreign investment and others have a cap or need government approval. The list is set by the FDI policy and changes over time, so it depends on the sector. We check the current rules for your business before recommending a structure.
Does BizSetups help after the company is set up?
Yes. We support annual compliance, GST, income tax, HR and payroll with PF and ESI, accounting on Zoho Books, Tally or SAP, and FEMA and FDI filings. We can also help with business address or factory leasing and factory compliance.
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Disclaimer
BizSetups Consulting Pvt. Ltd. provides professional business incorporation, compliance and advisory services through its private portal. We are a private business consultancy and are not affiliated with any government body.
All registrations and filings are processed through the official government portals. Our role is to assist with documentation, compliance and business structuring, and all fees collected are for advisory and consultancy services rendered. Information on this page is general guidance and does not replace advice on your specific situation.