How Can a Foreigner Start a Business in India? Complete Guide
A foreign national or company can start a business in India through four main routes: a Wholly Owned Subsidiary (100% ownership in most sectors, full business activity), a Joint Venture with an Indian partner, a Branch Office (limited commercial activity), or a Liaison Office (market research only, no income). Most foreign businesses choose a Wholly Owned Subsidiary.
Step-by-step: setting up a Wholly Owned Subsidiary
- Confirm your sector's FDI limit and route (automatic or government approval)
- Choose a company name and reserve it via SPICe+ Part A
- Appoint at least 2 directors, one of whom must be resident in India (182+ days/year) — many foreign founders use a nominee resident director
- File incorporation via SPICe+ Part B with apostilled parent-company documents
- Open a bank account and remit share capital through official banking channels
- File FC-GPR with the RBI within 30 days of share allotment
Documents a foreign parent company needs
- Certificate of incorporation of the parent company (apostilled)
- Board resolution authorising the Indian subsidiary and capital investment
- Passport and address proof of foreign directors (apostilled)
- Registered office address proof in India
What foreigners cannot do without registering
A foreign individual or company cannot legally invoice Indian customers, sign local contracts as a business, hire employees, or open a business bank account without a registered Indian entity or a compliant alternative such as the profit-sharing model described below.
A lower-cost alternative: sell without registering a company
If you want to test the Indian market before committing to full incorporation, you can sell through a registered Indian partner under a profit-sharing arrangement, avoiding incorporation cost and compliance until you've validated demand.
Explore subsidiary registration or read our guide on FDI routes, caps and reporting.