Overview
NRIs and foreign nationals can be directors and shareholders of Indian companies, subject to company law and FEMA. Every company needs at least one director resident in India, and documents signed abroad must usually be notarised and apostilled or consularised. The choice is usually between an Indian private company (often a wholly owned subsidiary), an LLP where FDI is allowed, or a liaison, branch or project office approved through the RBI and your bank.
Who this is for
- NRIs starting a business in India
- Foreign founders and parent companies
- Indian founders with foreign co-founders
Step by step
- Choose the structureA private company is the most flexible. Check FDI rules if you consider an LLP.
- Arrange a resident directorAppoint at least one director resident in India as defined in the Companies Act.
- Prepare documents abroadPassport, address proof and signed forms, notarised and apostilled as required.
- Incorporate and capitaliseIncorporate through SPICe+, then bring in capital through banking channels and report it under FEMA.
- Set up banking and taxOpen the company account. Individuals use NRE/NRO accounts for personal Indian transactions.
Documents you will need
- Passport and overseas address proof (apostilled)
- DSC issued against foreign documents
- Resident director documents
- Overseas bank KYC for remittances
The process
The MCA, RBI (through your bank) and Income Tax Department each have a part. Plan time for document legalisation abroad.
Authorities involved
- Ministry of Corporate Affairs: Incorporation and directors.
- Reserve Bank of India: Foreign investment and offices.
Common mistakes
- No resident director.
- Documents not apostilled.
- Bringing capital through personal accounts instead of reporting it as FDI.
Checklist
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Frequently asked questions
Can an NRI be the only director?
No. A company needs at least one director resident in India in addition to meeting the minimum number of directors.
Official sources
- MCA portal — company and LLP forms and services — Ministry of Corporate Affairs
- RBI — master directions on KYC, payments and foreign exchange — Reserve Bank of India
- Income Tax e-filing portal — Income Tax Department
Related services
- Indian Subsidiary Company Registration — from ₹11,563 (incl. GST) + Govt. Fees, if applicable
- ITR Filing – NRI — from ₹23,363 (incl. GST) + Govt. Fees, if applicable
- Foreign Company Registration / Liaison Office — from ₹6,961 (incl. GST) + Govt. Fees, if applicable