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Writer's picturePawan Siddarth & Co.

How can a NRI/Foreign Alien Incorporate a Company in India?



Indian economy is expanding quickly, and future years should see further growth.. The Indian government promotes NRI and international investment since it helps the country's economy grow. NRI and foreign national business operations are supported in India by FEMA, FDI, and RBI rules. NRIs and other foreign citizens can invest in India by purchasing shares in an Indian corporation, contributing money to an already-existing corporation, or opening a brand-new firm in India.


What corporations can foreigners and NRIs register with?


NRIs and foreign nationals may register in India for:


• A private limited company

• A public limited company

• A Limited Liability Partnership (LLP)


If the enterprise has a minimum of seven investors, the foreign promoter is allowed to form a public limited company. There must be at least 7 members. The foreign promoter has the option of forming a private limited company with two shareholders.


Indian Company Registration Process-


  • Directors from NRIs and other countries receive DSC(Digital Signature Certificate).

  • Directors of NRIs and foreign nationals receive DIN(Director Identification Number).

  • In order to register, you must go to the Ministry of Corporate Affairs (MCA) website and fill out the SPICe+ application.

  • AoA and MoA must be uploaded.

  • Following the application's verification and the completion of the document, the Registrar will subsequently issue the incorporation certificate.




Requirements for Public or Private Limited Company Registration-


1. Directors -


Foreign nationals, residents, and NRIs are permitted to be directors under the Companies Act of 2013. To become a director, you need the following:

  • Director Identification Number (DIN)

  • Digital Signature Certificate (DSC)

In a private limited company, two directors are required, while in a public limited company, three are required. In a foreign or NRI company, at least one Indian citizen must reside in India.


2. Shareholders -


Private companies need two members. There are 200 members in a private limited company. Company membership is unlimited.


3. Office address -


Before becoming incorporated, the newly formed firm must have an Indian office address in India. Foreign nationals and NRIs must ensure that they have an Indian office.


4. The following paperwork is necessary for foreign nationals residing in India to form an Indian company:


  • Permit to Reside

  • Passport

  • Business Visa

  • Any utility bill or bank statement (not older than two months)


The above documents must be legalized by the Consulate of the Foreign Embassy of India..


5. The following paperwork is necessary for NRIs to incorporate an Indian company:


  • Evidence of identity

  • PAN card

  • Voter ID, a driver's license, and an Aadhaar card

  • A copy of the driver's license, a bank statement, or any utility bill from the nation of residence would serve as current address evidence (from within the last two months)


Conclusion -


It is clear from the information above that being a non-Indian who wishes to do business in India is not an easy endeavour. Before entering India's corporate sector, you need to have all the necessary paperwork ready and finish the registration process as mentioned above.

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