Foreign Company Incorporation

As per section 2(42) of the Companies Act, 2013, a foreign company means any company or body corporate incorporated outside India which:-

(a) Has a place of business in India whether by itself or through an agent, physically or through electronic mode; and

(b) Conducts any business activity in India in any other manner.

Starting a Company in Foreign shouldn’t be complicated. With our experienced team and digital process, you can submit all your details online and get a company set up hassle free.

With a population of over 1.2 billion people, India is the largest democracy and one of the most promising emerging markets in the world. Therefore, there is immense interest among international businesses to tap the emerging opportunities in India and be among the early movers into the rapidly growing market. In this article, we look at ways a foreign company / foreign national can start a business in India and/or invest in businesses in India, and the related regulatory framework.


For the incorporation of a Private Limited Company in India, the following are required from the client: I) supporting documents, minimum of two directors (One Indian Director who is also an Indian Resident) and an acceptable name for the company. Once, the above are available, Digital Signature Certificate and Director Identification Number (DIN) is obtained by India Filings on behalf of the client from the Ministry of Corporate Affairs. On obtaining the DIN and the Digital Signature, request for company name availability is made to the Ministry of Corporate Affairs. After obtaining the name approval, draft the Memorandum of Association and file it within 60 days to complete the incorporation process.

It requires a minimum of two shareholders for a private limited company. Hence, the holding company in a foreign country must pass a Board Resolution for the incorporation of Company in India and for the subscription of shares of the proposed Private Limited Company. The foreign holding company can hold 99.99% of the shares of the Indian Company while 0.01% of the issued shares of the Private Limited Company can be held by an Indian, in trust with the foreign Company. After the company incorporation and obtaining the Incorporation Certificate, open the bank accounts and obtain the necessary licenses. Simultaneously, make the filings with RBI to indicate FDI in India through the automatic route.