Foreign Company Starting Business in India

Are you a foreign company willing to start your own business in India? Well, in that case let us help you understand all the regulations that you will have to follow while you start your business in India.

In that case, let us guide you through starting your business in India.

It’s not that easy for a foreign company to start its business in India.

There are many approvals which are to be taken and, numerous regulations which are to be followed.

Are you a foreign company willing to start your own business in India?

In that case, let us guide you through the regulations for starting your business in India.

Let us first understand the concept of foreign companies in India.


Foreign Company” as per section 2 (42) of Companies Act 2013 is defined as any company or body corporate which is located outside India and

  1. has its place of business in India either by itself or through an agent, physically or through an electronic mode;


  1. conducts any business activity in India in any other manner. 

After grasping foreign companies in India, let’s explore their registration requirements in India.


To establish a subsidiary company in India, a foreign company needs at least two individuals and an Indian business location.

In India, a private limited company must have a minimum of two directors and two shareholders for registration.

Section 149 (3) of the Companies Act, 2013, requires at least one director of an Indian private limited company to be an Indian citizen and resident.

The foreign company must appoint an authorized representative to register its Indian subsidiary company.

The authorized representative will be responsible for whole of the registration process and communication with the MCA for the same.

The company must establish its business location in India, which will serve as its registered office.

The company’s registered office location will also serve as its designated legal jurisdiction.

Let us now comprehend the registration process for a foreign company willing to start its business in India.


Any foreign company within 30 days of establishment must submit the following documents:

  • a certified copy of the charter, statute or memorandum and articles of the company or any other instrument establishing or defining the constitution of the company and if the document is not in English language, a certified translation thereof in the English language;
  •  Full address of the registered office of the company;
  • Details of the all the directors and secretary of the company;
  • Authorized representatives at the given address are responsible for accepting legal documents on behalf of the company.
  • Full address of the office of principal place of business in India;
  • details of opening and closing of a place of business in India on earlier occasions;
  • A declaration that none of the company’s directors or its authorized representative in India has faced condemnation or disqualification from managing companies in India or abroad.
  • other prescribed specifics.

In addition to the above, you must also send a list of directors and a secretary to the Registrar. It should be in accordance with Rule (3) of the Companies (Registration of Foreign Companies) Rules, 2014.

Within a period of 30 days of the establishment of its place of business in India, the foreign company must file form FC -1 of Companies (Registration of Foreign Companies) Rules 2014. Also, an attested copy of the approval from the Reserve Bank of India under Foreign Exchange Management Act,1999 or Regulations and from other regulators, if any.

After understanding the registration process of a foreign company starting its business in India, let us now go through the regulatory provisions under Foreign Exchange Management (Establishment in India of Branch or Office or other place of business) Regulations, 2000.


A foreign company willing to establish its business operations in India can also achieve this by setting up a Liaison Office / Representative Office, Project Office, or a Branch Office. These actions are governed by the provisions of the Foreign Exchange Management (Establishment in India of Branch or Office or other place of business) Regulations, 2000.

Additionally, such companies must submit an application in form FNC.

RBI authorizes AD Category I banks to submit FNC, enclosures, comments, and recommendations to the Chief Manager at RBI, Foreign Exchange Department, New Delhi.

The Reserve Bank of India will consider the requests under either the Reserve Bank route or the Government route.

Hope reading this would help you in understanding the process for a foreign company to start its business in India.

Also, in case if you want any further clarities related to how can a foreign company start its business in India, please fill in the below form and our experts will get back to you.

Start typing to see posts you are looking for.

Please Share your details & Our team will be back to you.

Call Now: +91 85 870 16216