Introduction to Foreign Nationals
Before we get into the deep details, & answer your questions if an NRI or Foreign National can register a company in India? And if yes, then how an NRI or Foreign National can register a company in India, what is the procedure for registering a company in India? Currently, India has emerged as the boost economy in the World & become the most preferred market of the NRI’s for investment & earning purpose, which attracts Foreign Direct investments in India. The reason behind this is achieved by many developments like privatization of banks due to profit margin, and powerful consumption demand & by making India more developed.
The government’s ease of doing business gives a boost to the economy as foreign nationals & NRIs can invest in the Indian Company by purchasing shares of the Company & other wealth of resources. Over the coming decades with plenty of business opportunities, foreign investment into India has hit an all-time high & is pegged up to grow even higher due to regulatory reforms & an investor friendly climate.
Opportunities for the NRI’s to Register a Company in India
Which type of Company NRI or foreign Nationals wants to register?
Are you an NRI & Want to Register a Company in incredible India?
Here are the companies through which an NRI or foreign Nationals can enter into business in India.
The NRI’s & Foreign Nationals must usually choose to incorporate or make investments in Private Limited Company and public limited Company in India. These business structures are the ideal business structures through which an NRI or foreign Nationals can enter India by making foreign direct investments in India under automatic route while other routes require prior approval by the Reserve bank of India. NRI or Foreign nationals are not allowed to invest or start a proprietorship or partnership in India. However, under the recent reforms introduced by the government of India, NRIs are now allowed to incorporate one person co in India.
How An NRI Register A Company in India?
NRI’s & Foreign nationals always choose to incorporate/start with a Private Limited company or limited Company to invest & grow into the business in India because private limited & public limited allows foreign direct investment in India through Automatic route in most of the sectors.
As per FEMA guidelines, FDI is not allowed in proprietorship firms and partnership firms. Thus, the NRIs cannot start these types of entities.
The private limited company can be established by foreign promoters with having 2 members & maximum 200 shareholders, while in a public limited company there should be minimum 7 members and there can be unlimited shareholders. Further for incorporating a LLP by a NRI/Foreign National, there should be a minimum two designated partners and further and for an OPC, there should be a minimum one shareholder. However under all of the above business structures, it is mandatory to have at least one India Director who should be a citizen and resident of India.
Can an NRI or Foreign National be Among The Board of Directors?
Yes, an NRI or Foreign Nationals or Foreign Resident can be the director of the Indian Company. For that, the person must have a director Identification number (DIN) & Digital signature. For a digital signature certificate , the foreign national or NRI must provide a self attested & notarized copy of his/her passport & address proof (driving license or utility bill).
Once the digital signature is granted, the DIN can be obtained by the foreign Nationals or NRI to be the board of Directors during incorporation.
A private limited company can have minimum 2 directors & public limited can have minimum 3 directors. It is mandatory that 1 director should be an Indian resident or an Indian citizen, while in addition board directors can be of any nationality.
Can an NRI or Foreign National Hold Shares in the Indian Company?
Yes, an NRI Can hold shares in the Indian Company. Subject to the FDI standards, a private limited company can shall have minimum 2 shareholders & maximum 200 shareholders, while a public limited company has 3 shareholders & maximum unlimited Shareholders.
How can NRI or Foreign Nationals arrange for business address proof if they want to commence business in india?
NRI or Foreign Nationals mostly face difficulty in not having Business address proof like electricity bill or gas bill when they plan to incorporate a business in India & address proof is one of the most vital requirements for registering a Company. To overcome this problem, the Indian government has implemented the concept of Virtual Office space. NRI or foreign National can now opt for a virtual office in India & move forward with their business set-up.
Mandatary list of documents required for NRI/Foreign National
- Copy of Passport is Mandatory.
- Passport size photographs of NRI or National Foreign.
- Copy of ID Proof is mandatory. It may be Driving Licence/Voter ID/Light bill (Issued by the Govt of foreign country)
- Copy of Address Proof must be The Latest Bank Statement/ Latest Telephone or Mobile Bill/ Latest Energy Bill (Issued by the Govt of foreign country, which should not be older than 30 days)
Note: The above-mentioned documents at point 1, 3 & 4 must be notarized by the Public Notary in foreign National’s Country or the same should be apostilled or attested by the Indian embassy in Foreign National’s Country.
Process of Registering a Company In India
Step 1. Notarize the documents
ANRI or foreign National must get their documents notarized i.e. address proof and id proof by the Public Notary in foreign National’s Country or the same should be apostilled or attested by Indian embassy in Foreign National’s Country.
Step 2: Naming the Company
Once the DSC is prepared, then the application for the name has to be filed with MCA in Form RUN along with 2 proposed names in sequence of priority.
While choosing with the names, it should be unique & not with the restricted names or not similar with the registered trademarks.
Step 3: Obtain Director Identification Number and Filing The Necessary Forms with the MCA
Once the name is approved, then apply the next process for incorporation forms with the MCA by filing all the necessary forms in Form spice+, spice MOA, spice AOA, Form INC-9, and Agile PRO with all the relevant details related to the Company Incorporation.
Step 4: Obtain the Certificate of Incorporation, TAN & PAN of The Company
Once the forms have been filed with the MCA, the certificate of Incorporation, Pan of the Company & Tan of the company are obtained.
This is a good time to invest in India & reap the returns as India is a great destination for starting a new business for NRI or Foreign National. With a market of 1.2 billion approximately people & a boost up economy, India presents an opportunity for ambitious people. With JustStart you can register your company with all the compliances followed & proper guidance support from our team in each & every step. We are providing pre & post-compliances & make you feel free from by making hassle free compliances. We have already incorporated 5000 plus companies all over India. We are growing rapidly.