India has emerged as one of the most promising markets for foreign investment. With a vast consumer base, skilled workforce, and government initiatives to ease business operations, global firms are increasingly looking to set up shop here. However, to operate legally, foreign companies must complete a structured registration process in compliance with Indian laws.
This guide walks you through each step of registering a foreign company in India, making the process clear and compliant.
1. Choose the Right Business Structure
Before registration, foreign companies must decide on the most suitable legal structure based on their business goals. Options include:
Wholly Owned Subsidiary (Private Limited Company)
Joint Venture with Indian Partner
Branch Office or Liaison Office (with RBI approval)
Project Office (for temporary contract-based presence)
2. Check FDI Eligibility and Route
Foreign investment is regulated under the Foreign Exchange Management Act (FEMA). Determine whether your investment falls under:
Automatic Route: No prior approval needed
Government Route: Prior approval from relevant ministries required (e.g., defence, telecom, media)
Sector-specific caps and conditions may apply, so reviewing the FDI policy is critical.
3. Name Reservation
Start the incorporation process by reserving the company’s name via the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) portal. Choose a unique name that aligns with business objectives and doesn’t conflict with existing entities.
4. File for Company Incorporation
Once the name is approved, proceed with registration via the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form on the MCA portal. You will need to submit:
Memorandum of Association (MOA)
Articles of Association (AOA)
Passport copies of directors
Proof of registered office address
Director Identification Number (DIN)
Digital Signature Certificate (DSC)
5. Obtain Statutory Registrations
After incorporation, apply for essential registrations:
PAN (Permanent Account Number)
TAN (Tax Deduction and Collection Account Number)
GST Registration (if applicable)
Import Export Code (IEC), if involved in cross-border trade
6. RBI Reporting and FEMA Compliance
Foreign equity investment must be reported to the Reserve Bank of India (RBI) using the FIRMS portal, including:
Advance Reporting Form
FC-GPR form post share allotment
Annual FLA return
Adherence to timelines is crucial to avoid penalties.
7. Post-Incorporation Compliances
Ensure the company stays compliant with:
Annual filings with MCA
Statutory audits
Board meetings and resolutions
Labour law registrations (PF, ESI, Shops & Establishment, etc.)
Transfer Pricing documentation (if applicable)