comapny name

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

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Foreign investment in India is a major monetary source for economic development in India. Apart from being a major source of economic growth, foreign investment in India is a major source of non-debt financial resource for the economic development of India. Foreign investment in India is made by foreign companies so that they can take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country in which foreign investments are being made, it also means achieving technical know-how and generating employment.

Do you know that being a non-resident person or a foreigner you can easily incorporate your own new company in India? The process of online company registration in India and making foreign investment in India is quite simpler than you can imagine. The first step for company incorporation is to hire FDI consultants preferably a Chartered Accountant or Company Secretary, who will make the whole process smooth and effective. You can easily find FDI Consultants through our online directory of CAONWEB.

Company Registration

Online Company Registration in India:

The private limited company is governed by the Companies Act, 2013 in India. As per the Companies Act, 2013 the minimum number of directors requirement is 2 for private limited company incorporation. One of the director must be an Indian resident. Therefore, a foreigner can also become the director of a private limited company.

The documents required to become a director for Non Resident or foreigner are:

  1. Digital Signature Certificate (DSC)
  2. Director Identification Number (DIN)
  3. Passport
GST Registration

To apply for DIN, requirements are:

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

In the process of application of DIN, all documents including photographs must be certified by the Indian Embassy or a notary in the home country of the applicant or by the Managing Director or by the CEO or by the Company Secretary of the company registered in India, in which applicant is a director. If a foreign director is having a valid multiple entry Indian VISA or Person of Indian Origin card or Overseas Citizen of India card, then the attestation can also be done by Public Notary or Gazetted Officer in India or a practicing chartered accountant or company secretary or cost accountant. For any other queries relating to foreign investment in India, online company registration in India, you can take help FDI consultants through our online platform of CAONWEB.


FDI Allowances in various sectors

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  • Agriculture – 100%
  • Plantation Sector – 100%
  • Mining of metal and non-metal ores – 100%
  • Mining – Coal & Lignite – 100%
  • Food Product Retail Trading – 100%
  • Broadcasting Carriage Services (Teleports, DTH, Cable Networks, Mobile TV, HITS) – 100%
  • Broadcasting Content Service – Up-linking of Non-‘News & Current Affairs’ TV Channels/ Downlinking of TV Channels – 100%
  • Airports – Greenfield – 100%
  • Airports – Brownfield – 100%
  • Air Transport Service – Non-Scheduled – 100%
  • Air Transport Service – Helicopter Services/ Seaplane Services – 100%
  • Ground Handling Services – 100%
  • Maintenance and Repair organizations; flying training institutes; and technical training institutions – 100%
  • Construction Development – 100%
  • Industrial Parks – new and existing – 100%
  • Trading – Wholesale – 100%
  • Trading – B2B E-commerce – 100%
  • Duty-Free Shops – 100%
  • Railway Infrastructure – 100%
  • Asset Reconstruction Companies – 100%
  • Credit Information Companies – 100%
  • White Label ATM Operations – 100%
  • Non-Banking Finance Companies – 100%
  • Pharma – Greenfield – 100%
  • Petroleum & Natural Gas – Exploration activities of oil and natural gas fields – 100%
  • Petroleum refining by PSUs – 49%
  • Infrastructure Company in the Securities Market – 49%
  • Commodity Exchanges – 49%
  • Insurance – 49%
  • Pension – 49%
  • Power Exchanges – 49%
FDI Services

FDI Services

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India is one of the top Country in terms of foreign investment destination. To invite and encourage Foreign Direct Investment in India (FDI), the process of regulation and approval has been substantially liberalized. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.

FDI can be divided into two broad categories – Investment under automatic route and investment through prior approval of Government.

A procedure under automatic route:

FDI in sectors/activities to the extent permitted under automatic route does not require any prior approval either by the Government or RBI. The investors are only required to notify the Regional office concerned of RBI within 30 days of receipt of inward remittances and file the required documents with that office within 30 days of issue of shares to foreign investors.

Procedure for Government approval:

FDI in activities not covered under the automatic route requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB). Approvals of composite proposals involving foreign investment/foreign technical collaboration are also granted on the recommendations of the FIPB. For detail of project under Automatic Route and Government Route.