The Indian economy is growing at a high rate and continued growth is predicted for years to come. The government of India encourages NRI and foreign national investment as this further fuels the economy. FEMA, FDI, and RBI policies all support NRI and foreign national business activities in India. NRIs and foreign nationals can invest in India by buying shares in an Indian company, investing capital in an existing company, or registering a new business in India. In this article we talk about Indian company registration for NRIs and foreign nationals.
Which Companies NRIs and Foreign Nationals Can Register for
In India NRIs and foreign nationals can register for:
- A private limited company
- A public limited company
- A Limited Liability Partnership (LLP)
The foreign promoter is permitted to establish a public limited company if the number of investors in the venture is a minimum of seven. At least 7 members are required. A private limited company can be set up by the foreign promoter with two members. The private limited company is permitted to have a maximum of 200 shareholders. A public limited company is permitted an unlimited number of shareholders.
Requirements for Registration of Public or Private Limited Company
Directors
According to the Companies Act of 2013, NRIs, foreign residents and foreign nationals are permitted to be directors in an Indian company. The NRIs and foreign nationals must get the following in order to become the director of a company:
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
A private limited company is required to have at least two directors, and a public limited company is required to have a minimum of three directors. There must be a minimum of one Indian citizen director staying in India, in a company set up by NRIs or froeign nationals.
Shareholders
A private company is required to have a least two members. A public limited company is required to have at least seven members. The private limited company is permitted to have at most 200 members. A public limited company does not have any limit on the number of members.
Office Address
The company being set up is required to have an Indian office address in India before getting incorporated. NRIs and foreign nationals have to make sure they have an Indian office. The proof of office address can be provided by the following and have to be submitted when the incorporation application is being filed:
- The sale deed
- Or rental agreement
NOC
If the company office is in a leased or rented property, an NOC (No Objection Certificate) must be obtained by the owner and submitted in order for this office to be registered.
Documents Required
Documents required by foreign nationals who are staying in their home country and incorporating an Indian company:
- Passport
- Address proof such as driving license, bank statement or any utility bill (from within the past two months)
The above documents have to be notarised by a Public Notary and be apostilled by the relevant authority in the country where they stay.
The documents required by foreign residents staying in India to incorporate an Indian company:
- Resident permit
- Passport
- Business visa
- Bank statement or any utility bill (not older than two months)
- All the above documents must be attested by the Consulate of the Foreign Embassy in India.
The documents required by NRIs to incorporate an Indian company:
- Proof of identity
- PAN card
- Aadhaar card, driving license, voter ID, if any
Current address proof such as a copy of the driving license, bank statement or any utility bill in the country of residence (from within the last two months )
The current address proof has to be notarised by a Public Notary in the country of residence and apostilled by the Indian Embassy in the foreign country.
Company Registration Process In India
The company registration process in India for NRIs and foreign nationals is as follows:
- NRI and foreign national directors get DSC
- NRI and foreign national directors get DIN
- Register on the MCA (Ministry of Corporate Affairs) portal and file the form SPICe+
- Upload all company related documents such as e-MoA and e-AoA
- The Registrar will then issue the incorporation certificate after verification of the application and the document is complete.
To ask any questions related to the rights of NRIs, PIOs, and OCIs, you can download SBNRI App from the Google Play Store or App Store. You can also use the SBNRI app for investment in stock market/ mutual funds, NRI account opening, tax filing, etc. To ask any questions, click on the button below. Also, visit our blog and YouTube channel for more details.
FAQs
In India NRIs and foreign nationals can register for:
A private limited company
A public limited company
A Limited Liability Partnership (LLP)
Director Identification Number
Digital Signature Certificate
Ministry of Corporate Affairs
