Frequently Asked Questions
🏢 General Business Setup FAQs
Who can set up a business in India as a foreign national or company?
Foreign nationals, NRIs (Non-Resident Indians), and foreign companies can set up businesses in India. The process varies depending on your nationality, the type of business, and the sector you wish to enter. Most sectors allow 100% foreign direct investment (FDI), while some have specific restrictions or require government approval.
What are the different types of legal entities available for foreign businesses in India?
Foreign businesses can choose from several entity types including Private Limited Company (most popular), Limited Liability Partnership (LLP), Branch Office, Liaison Office, Project Office, or wholly-owned subsidiary. Private Limited Companies offer the most flexibility and benefits for foreign investors.
What is the process to register a company in India for a foreign business?
The process involves obtaining Digital Signature Certificate (DSC), Director Identification Number (DIN), reserving company name, filing incorporation documents with MCA, obtaining PAN and TAN, opening bank account, and completing other regulatory registrations like GST, ESIC, and PF as applicable.
How long does it take to form a company in India?
Company incorporation typically takes 15-20 working days from the date of filing complete documents. However, the entire process including bank account opening and other registrations may take 4-6 weeks depending on the complexity and completeness of documentation.
Do I need to be physically present in India to set up the company?
No, physical presence is not mandatory. The entire process can be completed remotely through proper documentation and authorized representatives. However, for bank account opening, some banks may require the director's presence, though many now accept video KYC.
What are the documents required for company formation in India?
Required documents include passport copies of directors/shareholders, address proof, photographs, proof of registered office address in India, Memorandum and Articles of Association etc.
Can NRIs or foreign companies own 100% of an Indian company?
Yes, in most sectors, 100% foreign ownership is allowed under the automatic route. However, certain sectors like defense, telecommunications, and retail have specific FDI caps and may require government approval.
Is an Indian partner or director mandatory for foreign company registration?
No, having an Indian partner is not mandatory. However, at least one director must be an Indian resident or someone who has stayed in India for at least 182 days in the previous calendar year. We can provide nominee director services if needed.
💳 Banking & Finance FAQs
How can a foreign-owned company open a bank account in India?
After company incorporation, you can open a current account by submitting incorporation certificate, PAN card, address proof, board resolution, and KYC documents of authorized signatories. Many banks now offer video KYC for foreign directors.
Which Indian banks are best for international businesses?
HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India are popular choices for international businesses due to their robust digital banking platforms, international presence, and experience with foreign-owned companies.
What are the RBI (Reserve Bank of India) requirements for foreign remittances?
All foreign remittances must comply with FEMA (Foreign Exchange Management Act) regulations. Inward remittances for capital investment require proper documentation and reporting. We help ensure all RBI compliance requirements are met.
Can the company receive payments from abroad and make international transfers?
Yes, Indian companies can receive payments from abroad for legitimate business purposes and make international transfers subject to RBI regulations and proper documentation. Current account transactions are generally freely permitted.
Are there any restrictions on repatriating profits out of India?
Profit repatriation is generally allowed after paying applicable taxes. However, it must comply with transfer pricing regulations and FEMA guidelines. Proper documentation and tax clearances are required for smooth repatriation.
📦 Trade & Compliance FAQs
How do I get an Import Export Code (IEC) in India?
IEC is obtained online through the DGFT portal. Required documents include company incorporation certificate, PAN card, bank certificate, and authorized signatory details. The process typically takes 7-10 working days.
What taxes apply to foreign businesses operating in India?
Indian companies pay corporate tax (around 25-30%), GST on goods and services (5-28%), and various other taxes like professional tax, TDS, etc. Tax rates may vary based on turnover and business type.
Do I need a GST registration to trade in India?
GST registration is mandatory if annual turnover exceeds ₹20 lakhs (₹10 lakhs for northeastern states). For interstate trade or specific business types, registration may be required regardless of turnover.
What ongoing compliance is required after company formation?
Annual compliances include filing annual returns with MCA, income tax returns, GST returns (monthly/quarterly), maintaining statutory registers, conducting board meetings, and various other regulatory filings depending on business activities.
What are the common pitfalls or delays in setting up a business in India?
Common issues include incomplete documentation, name approval delays, address proof complications, bank account opening challenges, and lack of understanding of local compliance requirements. Proper planning and expert guidance help avoid these pitfalls.
📍 Location & Operational FAQs
Which is the best city or state in India to set up my business?
The choice depends on your business type. Mumbai and Delhi NCR are financial hubs, Bangalore is ideal for IT/tech, Chennai for manufacturing, and Pune for automotive. We help you choose based on your specific requirements, tax benefits, and infrastructure needs.
Do you help with staffing, hiring, or payroll services in India?
Yes, we provide comprehensive HR solutions including recruitment, payroll management, PF/ESIC compliance, employment contracts, and ongoing HR support to help you build and manage your Indian team effectively.
💼 Your Service-Specific FAQs
What is included in your business setup package?
Our comprehensive package includes company incorporation, all regulatory registrations, bank account assistance, registered office address, compliance setup, documentation support, and ongoing advisory services for different kind of transactions.
Can you help with legal agreements and tax advice?
Yes, we have a network of qualified legal and tax professionals who can assist with contract drafting, legal agreements, tax planning, transfer pricing, and other specialized legal and tax matters.
What industries or sectors do you specialize in?
We have experience across various sectors including IT services, manufacturing, trading, consulting, e-commerce, fintech, healthcare, and more. Our team understands sector-specific regulations and compliance requirements.
Do you offer post-incorporation support?
Absolutely! We provide ongoing compliance management, annual filing services, accounting and bookkeeping, tax return preparation, regulatory updates, and business advisory services to ensure your continued success in India.
Do you provide local nominee directors or representatives if needed?
Yes, we can provide qualified nominee director services to meet residency requirements. Our nominees are experienced professionals who understand their fiduciary duties and corporate governance requirements.