Registering Foreign Company in India 

In this era of globalization, every country looks forward to improving business relations by carrying out trade activities together. India, being the fast-growing economy in the world, is a favorite destination for many MNCs and corporations. However, foreign companies first need to complete all the legal compliance before commencing their business.

What is the Meaning of Foreign Company?

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

In what ways can a foreign company run business in India?

There are the following ways in which the foreign company can commence business which is as follow:

If the company is incorporated within the Indian Companies Act 2013, but shares are held by a foreigner:

  • Wholly Owned Subsidiary:  For this, a foreign company needs to invest 100% FDI in that Indian company.
  • Subsidiary Company: Foreign companies hold shares of Indian companies up to the limit of 49.99% of the total shares of that company.
  • Joint Venture: The foreign company can partner with any indigenous company, and it requires a duly-signed MoU or a Letter of Intent from both parties.

If the Foreign Company registers itself under the Companies Act, 2013 to start a business:

  • Branch Office: To open a branch office in India, the company must function at a large scale and provide the proof of profitability
  • Liaison Office: It can be established for all liaison activities in India. However, all the expenses of the liaison office must be met through foreign remittance from a parent company.
  • Project Office: Established only to execute projects awarded to a foreign company by an Indian Company. For this, approval from the RBI may be required.

Documents Required for Foreign Company Registration in India 

  • Identification, address proof along with passport, driving license, and bank statement of the foreign person who will serve as a director of the company. Also, the individual must get the original copy of documents notarized by a Notary in the home country or by the Indian Embassy in the country of the foreign Director.


  • The statement of Broad Resolution authorizing the investment will be required, in case a foreign company is proposing to become a shareholder in an Indian Company. It is a must to attach a copy of the notice with the certificate of incorporation of the foreign entity.

For the incorporation, the presence of any of the foreign directors isn’t required. Thus foreign citizens can easily establish and operate a business in India without the hassles of traveling to India. Additionally, the cost of registering a business in India is relatively inexpensive, making it a perfect and easy place to establish and commence business.

Post-Incorporation Formalities for a Foreign Company

  • The Indian director of the company must open a bank account in the name of the company in India.
  • Once it’s done, the foreign company is required to make FDI reporting to the RBI by a legal and accounting professional in India.
  • Completion of  FDI reporting indicates the business is ready for operations and has complied with all the regulations in India.

How Muneembhai Simplifies the Process of Registering a Foreign Company in India?

We understand the requirements of your business and provide you with a comprehensive suite of customized solutions that suit your needs at a nominal cost. 

With our team of CA, CS, and lawyers, we manage the complete process; right from managing the business registration process to overseeing your budget expenditure to ensure that your preliminary expenses don't exceed the limit for longer financial stability.

Being a technology-driven platform, we strive to foster your business growth!


Connect with us

Reach Out To Us