Starting a company in India often raises a lot of questions and misconceptions, especially for entrepreneurs and investors coming from different parts of the world. Let us address some of the most common FAQs and debunk myths surrounding company registration in India.
Frequently Asked Questions (FAQs)
1. Can a foreign national or foreign company register a business in India?
Yes. 100% foreign ownership is permitted in many sectors under the Automatic Route. Foreign investors can set up:
- Wholly Owned Subsidiary
- Joint Venture
- Liaison, Branch, or Project Office
2. What are the most common types of business structures in India?
- Private Limited Company
- Limited Liability Partnership (LLP)
- Public Limited Company
- One Person Company (OPC)
Each structure differs in compliance, ownership, and liability.
3. What are the basic requirements to register a company in India?
- Minimum 2 directors (one must be an Indian resident)
- Minimum 2 shareholders
- Registered office address in India
- Digital Signature Certificate (DSC) & Director Identification Number (DIN)
4. How long does company registration take?
Generally, 15 to 20 working days, depending on document readiness and government approvals.
5. Is an Apostille or Notarisation needed for foreign documents?
Yes. For directors/shareholders based abroad:
- If the country is part of the Hague Apostille Convention (like the UK, USA, Singapore, Japan), documents need to be apostilled.
- If not (like the UAE), documents must be notarised and attested by the Indian Embassy/Consulate.
6. Do I (as a foreign investor from the USA or another country) need to visit India for registration?
No. The entire company registration process in India is completely online.
Entrepreneurs from the USA, UK, UAE, Singapore, Japan, or any other country can complete incorporation remotely by submitting notarised or apostilled documents. Physical presence in India is not required at any stage of the registration.
7. Is it mandatory to have a physical office in India?
Yes, a registered office address is required for official communication. However, it can initially be a virtual office address or shared space.
8. How can profits be repatriated to the home country?
Profits can be repatriated post payment of taxes, provided all regulatory compliances (FEMA, RBI, Income Tax Act) are met.
9. Can a company registered in India open bank accounts in foreign countries?
Yes, under certain FEMA provisions, Indian companies can open overseas accounts for business operations or export receipts.
10. How is India’s company registration system different from other countries?
| Country | Key Regulator | Minimum Capital | Setup Time | Notable Point |
| India | MCA (Ministry of Corporate Affairs) | No minimum capital | 15-20 days | 100% FDI allowed in most sectors |
| UK | Companies House | £1 | 1–2 days | Fastest online registration |
| USA | State authorities | Varies by state | 3–7 days | LLC or C-Corp flexibility |
| UAE | DED / Free Zone Authority | AED 10,000 (varies) | 5–10 days | 0% corporate tax in free zones |
| Singapore | ACRA | SGD 1 | 1–3 days | Top-ranked for ease of doing business |
| Japan | Legal Affairs Bureau | ¥1 | 10–15 days | Requires local address and a representative |
11. Can a foreign national or company register a business in India?
Yes. 100% foreign ownership is permitted in most sectors under the automatic route without prior government approval.
12. Is there a minimum capital requirement?
No, a Private Limited Company can be incorporated with as low as ₹1 as paid-up capital.
13. How long does it take to register a company in India?
Usually 7–10 working days, depending on document readiness and approval timelines from MCA.
14. What is the role of MCA (Ministry of Corporate Affairs)?
The MCA is the regulatory authority overseeing company incorporation, filings, and corporate compliance in India.
15. What is the difference between an LLP and a Private Limited Company?
| Basis | LLP | Private Limited Company |
| Ownership | Partners | Shareholders |
| Compliance | Moderate | Higher |
| Ideal for | Professionals | Startups, investors |
| Foreign Ownership | Allowed | Allowed |
16. Do foreign directors need an Indian DIN?
Yes, every director (including foreigners) must obtain a Director Identification Number (DIN) before appointment.
17. Is an Indian resident director mandatory?
Yes. At least one director must be a resident of India, meaning they should have stayed in India for at least 182 days in the previous financial year.
This applies to all companies — whether the shareholders or other directors are from India, Japan, USA, UK, UAE, or Singapore. Having one Indian resident director ensures compliance with the Companies Act, 2013, and smooth coordination with local authorities.
18. Do I need a local partner to start a company in India?
Not necessarily. 100% foreign ownership is permitted in most sectors unless the activity falls under the restricted list (where government approval is needed).
19. What kind of business activities need prior government approval?
Sectors like defense, telecom, media, insurance, and banking may require prior approval from the Government of India.
20. What taxes apply to an Indian company with foreign ownership?
- Corporate tax: 22% (domestic), 40% (foreign company)
- Dividend distribution: Subject to withholding tax
- GST: Applicable if turnover crosses the prescribed limit
- Transfer pricing: Applies to cross-border transactions
21. Can profits be repatriated to the parent company?
Yes. After payment of applicable taxes and compliance with FEMA/RBI rules, profits/dividends can be freely repatriated.
22. Is a registered office required in India?
Yes, an official address is mandatory, but it can be a shared, virtual, or residential address at the time of registration.
23. Can a company be registered with foreign shareholders only?
Yes. Both shareholders can be non-residents; only one director must be an Indian resident.
24. What are the post-incorporation compliances?
- PAN, TAN, GST registration
- Opening of bank account
- Issue of share certificates
- Filing INC-20A (Commencement of Business)
- Appointment of auditor
- Annual filings (AOC-4, MGT-7)
25. Can I register a company for an e-commerce or online business?
Yes. E-commerce entities with foreign investment are permitted under certain models; compliance with FEMA & FDI policy is required.
26. Can a foreign company merge or acquire an Indian company?
Yes, under the Companies Act, 2013, and the FEMA (Cross-Border Merger) Regulations, inbound and outbound mergers are legally permitted with the approval of the RBI.
27. Is it necessary to open an Indian bank account before incorporation?
No, it is opened after incorporation, once you receive the Certificate of Incorporation and PAN.
28. Can Indian companies register subsidiaries in the US?
Yes. Indian companies can establish subsidiaries, branches, or joint ventures overseas after obtaining approvals under FEMA’s Overseas Direct Investment (ODI) guidelines.
29. What happens if I fail to comply with MCA filings?
Non-compliance attracts penalties and may lead to the disqualification of directors or the striking off of the company from the register.
30. Why should I hire a professional firm like Neeraj Bhagat & Co.?
Because navigating India’s regulatory system, FDI norms, and tax compliance can be complex. Our experienced team simplifies it all — from documentation to RBI & FEMA filings, ensuring a smooth and compliant start.
Why Choose Neeraj Bhagat & Co.?
At Neeraj Bhagat & Co., we specialize in helping foreign companies and NRIs establish businesses in India.
From documentation, regulatory compliance, tax registration, FEMA advisory to post-incorporation support, our team ensures a smooth, compliant setup experience for every global entrepreneur.
Need expert assistance with cross-border company registration?
📩 Visit: www.neerajbhagat.com | www.companyformationindia.com
🌐 Collaborating globally with investors from the UK, USA, UAE, Singapore, and Japan.
