How can a Non Resident or a foreigner establish company in India?

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Do you know that being a foreigner you can easily incorporate your own company in India? The process is quite simpler than you can imagine. The first step is to hire a consultant preferably a Chartered Accountant, who will make the whole process smooth and effective.

Let’s understand the basic requirement to establish or incorporate a private limited company in India. The private limited company is governed by Companies Law in India. As per the law for a private limited company minimum number of directors required is 2, one of them shall be mandatorily Indian resident. For the second one, it is not necessary to be Indian national or a resident. Therefore any foreigner could be the director of a private limited company.

The pre-requisites to become a director for Non Resident or foreigner are:

  1. Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  2. Passport

To apply for DIN, requirements are:

  • Photograph;
  • Proof of identity;
  • Proof of residence;
  • Verification by the applicant for applying for allotment of DIN in Form DIR-4; and
  • Specimen signature duly verified.

In the process of applying DIN, all supporting documents including photograph should be certified by the Indian Embassy or a notary in the home country of the applicant or by the Managing Director / CEO / Company Secretary of the company registered in India, in which applicant is a director. If a foreign director has a valid multiple entry Indian visa or Person of Indian Origin card or Overseas Citizen of India card, then the attestation could also be done by Public Notary / Gazetted Officer in India or a practicing chartered accountant/company secretary/cost accountant.

Flexibilities in incorporation

Presence of foreign director is not required in India while company is being incorporated

As one of the director shall be Indian resident, this will not create any disadvantage for you as a foreign director because you can still keep the maximum shareholding for yourself.

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