Business Setup in India for NRIs, Foreign Nationals and Overseas Companies

An Indian company, an LLP and an Indian office of a foreign entity are different routes. Choose the route against the actual activity and ownership plan before arranging documents or sending money.

Sources checked: 7 November 2026. Check the linked rules and the receiving bank’s requirements before acting.

Citizenship, residence and ownership are different questions

Company-law resident-director tests, LLP designated-partner residence, FEMA residence and tax residence serve different purposes. Do not use one day-count as a universal test.

India entry-route and preparation planner

Answer seven questions to get a starting route, review points and a document-planning checklist. This runs on this page; it does not request personal identifiers or submit an application.

Build my starting checklist

Complete the seven answers to build a starting checklist.

Compare the main entry routes

Route	What it may suit	What needs a separate check
Indian Private Limited Company	An Indian operating company with individual or corporate shareholders; a subsidiary or joint venture where appropriate.	Activity, investor eligibility, ownership caps, approval route, management and reporting.
Indian LLP	Partner-based ownership where the applicable investment provisions permit it.	Foreign investment is generally limited to sectors permitting 100% automatic-route investment without FDI-linked performance conditions; NRI/OCI non-repatriation provisions require separate analysis.
One Person Company	An eligible sole Indian-citizen owner, including an NRI.	Member and nominee eligibility, resident management, the investment route and company obligations. It is not a foreign-national or overseas-company ownership route.
Branch office	Specified permitted Indian activities of an eligible overseas entity.	Parent eligibility, permitted functions, bank/RBI approval framework, parent exposure, tax and reporting.
Liaison office	Non-commercial representation and communication for an overseas entity.	No commercial trading or Indian income; funding, eligibility, approval and annual activity obligations.
Project office	Execution of a qualifying Indian project by an overseas entity.	Contract and permission conditions, project scope, banking and closure obligations.

RBI: Foreign Investment in India · RBI: branch, liaison and project offices

Foreign ownership and Indian management are separate

A resident director is not automatically an Indian shareholder. An eligible Indian subsidiary can have overseas beneficial ownership while meeting its management requirements. Do not assume a foreign investor must give away equity simply to meet a residence requirement.

For an ordinary company, section 149(3) requires at least one director to stay in India for 182 days during the financial year, applied proportionately in the incorporation year. An LLP needs at least two individual designated partners, including one meeting its 120-day financial-year residence test. These are different tests.

Country and beneficial ownership: use the current framework

Check both the direct investor and its beneficial ownership and control. The 2026 framework changed the treatment of some non-controlling land-border-country interests of up to 10%, subject to conditions and reporting. It is neither a blanket exemption nor a basis for treating every such connection identically. The planner does not decide this question.

PIB: revised 2026 beneficial-ownership framework

Prepare overseas documents before signing

Do not order apostilles for every document by default. The applicable execution route depends on the document, signatory and place of execution, including the Commonwealth, Hague Convention or consular route where relevant. Confirm translations, required wording and receiving-authority requirements before paying for attestation.

For a corporate shareholder, the incorporation certificate alone is not a complete authority pack: identify its constitution, ownership, approving resolution and authorised signatory. Keep names, addresses and signatory details consistent across the pack.

Your preparation checklist

This is a planning list. The filing professional, authorised dealer bank and relevant authority must confirm the final set, execution requirements and acceptance standards.

• Define the actual business, activity classification, operating locations and proposed ownership.
• Prepare the individual investors’ and proposed directors’ identity and address evidence; foreign nationals generally use a passport.
• For a corporate investor, prepare incorporation evidence, constitutional documents, current ownership/control information and the approving resolution.
• Identify the authorised representative, signing authority and evidence linking that person to the corporate investor.
• Plan genuine directors or designated partners, their consents, identification numbers and the applicable India-residence requirement.
• Prepare the Indian registered-office or office-premises evidence, owner consent and the address documents required for the chosen route.
• Confirm where each document will be signed or issued, its language and the applicable notarisation, apostille, consular authentication or translation route.
• Discuss remittance, source of funds, remitter KYC, account opening and supporting evidence with the receiving bank before sending money.
• Record sector, country/ownership and other approvals or conditions that must be satisfied before the planned step.
• Allocate responsibility for incorporation or establishment filings, investment reporting, accounts, tax, audit and annual obligations.

Plan the first year before establishing the business

Stage	What to plan	Who to involve
Before choosing the entity	Confirm the activity, investor status, ownership, investment basis and any prior approvals.	Founders, Indian adviser and relevant authority
Before signing documents	Confirm the name, business objects, management, registered office and document-execution route.	Founders, filing professional and overseas signatories
Before sending money	Agree the payment route, instrument, valuation where applicable and receiving-bank evidence.	Investor, Indian entity and AD bank
On establishment or investment	Map the actual incorporation/subscription or later issue event to its reporting obligations. Check FC-GPR for company equity or LLP-I/LLP-II as applicable, and their current triggers and timelines.	Indian entity, filing professional and AD bank
During the year and at year-end	Plan accounting, tax, statutory audit and ROC filings; assess FLA applicability. Overseas-entity offices need their own activity, tax and reporting calendar.	Directors/designated partners or office management, accountant and adviser
On changes or exit	Assess ownership transfers, valuation, reporting, taxes, repatriation conditions and the legal closure route before moving money or stopping filings.	Owners, Indian entity or office, AD bank and advisers

Incorporation is not an immigration permission

Owning shares, being appointed a director, opening an office and living or working in India are different matters. Check the applicable visa, immigration and work conditions for the actual visit or role.

Continue with the existing guides

• Private Limited Company Registration
• LLP Registration
• OPC Registration
• Foreign-company subsidiary, branch and liaison comparison
• Names and 90 draft business-object clauses
• Registration and recurring costs
• Compliance calendar

Does a foreign-owned company need an Indian shareholder?

Do not confuse shareholder nationality with the resident-director requirement. Depending on the activity and investment conditions, overseas beneficial ownership can be permitted while the company separately meets minimum membership and management requirements.

Does an automatic investment route remove other approvals?

No. Sector operating permissions, company filings, banking, investment reporting and tax obligations can still apply.

Can I use an LLP whenever a company is available?

No. An LLP has a separate ownership and foreign-investment framework. Assess the actual activity and investment basis rather than assuming the rules are interchangeable.

Official sources and scope

The planner is an educational shortlist and preparation aid. It does not certify investor eligibility, sector classification, tax treatment, document acceptance or regulatory approval. Final requirements depend on the facts and current rules.

• RBI: Foreign Investment in India
• RBI: branch, liaison and project offices
• PIB: revised 2026 beneficial-ownership framework
• MCA: SPICe+ incorporation and overseas-document FAQs
• Companies Act: resident-director requirement
• LLP Act: designated partners and residence
• MCA/PIB: OPC eligibility changes
• MEA: apostille and attestation