FAQs on Company Incorporation in India for Foreign Entrepreneurs

India has become one of the international business centres and entrepreneurs all over the world are visiting India because of its thriving economy and business friendly policies. Company incorporation in India presents an enormous potential for international investors who are interested in establishing a position in the Indian market which is one of the fastest growing markets in the world.

Singapore, USA, UK, Japan and Australia are also the countries that are now increasingly interested in expanding their businesses in India. The process involves certain documentation, compliance as well as legal formalities that are not similar to other countries. These requirements are very important in establishing businesses successfully. Read on to learn the most frequently asked questions about company incorporation in India for foreign entrepreneurs.

1. What types of business structure can foreign entrepreneurs choose?

Foreign entrepreneurs can register a Private Limited Company, LLP, branch office, liaison office or representative office. A Private Limited Company allows full foreign ownership under the automatic FDI route. An LLP suits service or consultancy models. Branch or liaison offices need RBI approval and have limits. OPC or Section 8 companies may also suit specific purposes. 

2. What documents are required for foreign entrepreneurs?
 

Checklist of key documents for foreign entrepreneurs:

 

● Recent passport-size photograph

● Nationality proof (passport is mandatory for foreign entrepreneurs)

● Address proof (not older than two months). Acceptable documents include:

• Driving license
• Bank statement
• Utility bill
• Director Identification Number (DIN)
•  Digital Signature Certificate (DSC)Declarations such as INC-9
   

The documents should be notarised and apostilled. This checklist will make sure that you are ready with all the documents.

3. What is the average time that incorporation normally takes?

Timeline globally:

● DSC application: 1–2 working days

● DIN application via SPICe+: filed with incorporation forms

● Name reservation (RUN service): 2–4 working days

● Filing SPICe+ forms with MoA/AoA, KYC: around 10–15 business days

The process completes in about 14–20 business days if documents are in order. In practice, delays can stretch it to 30 days.

4. What are common challenges foreign entrepreneurs face?

Foreign entrepreneurs report these common issues:

● Misfiling MoA or AOA leads to rejections and resubmissions

● Overpaying for simple registrations like DSC and name approval

● Using home addresses as registered office without planning for relocation

● Underestimating compliance costs post incorporation, around ₹30 50k annually, even for zero revenue entities

5. Is physical presence required to register a company in India?

Physical presence is not required to register a company in India. The entire incorporation process is fully online via the MCA portal. Documents from foreign directors or shareholders can be scanned, notarised and apostilled abroad, then uploaded or emailed. Digital signatures and filings complete the process. All formal approvals, including Certificate of Incorporation, are issued electronically. A local registered office address in India must still be provided.

Company Bio

Prakash K Prakash is an expert in company incorporation in India and provides a complete package of business setup. They take care of the whole process, including post-incorporation compliance, making it a smooth experience for entrepreneurs worldwide. Our experts guide you through:

● Company Name Search & Reservation

● Company Incorporation with MCA

● PAN & TAN Application

● GST Registration & Compliance