Doing Business in India
A visual, step-by-step roadmap to successfully establish and operate your business in the world's 5th largest economy
India Business Entry Journey At a Glance
Market Research & Sector Analysis
* Analyze competition and identify your unique value proposition
* Understand regional differences (language, culture, preferences)
* Assess regulatory environment for your specific industry
* Government Route: Requires approval through FIFP
* Sector-specific caps on foreign investment percentage
* Compliance with Press Note regulations and FEMA rules
FDI Policy Verification
Business Structure Selection
* LLP: Lower compliance, good for services & smaller operations
* Branch/Liaison Office: For temporary presence
* Wholly Owned Subsidiary: Complete control but higher compliance
* Apply for DIN (Director Identification Number)
* Reserve company name through RUN service
* Prepare and file incorporation documents (MOA, AOA)
* Receive Certificate of Incorporation with PAN/TAN
Entity Incorporation
Post-Incorporation Setup
* Register for GST (if applicable)
* Set up accounting & compliance systems
* Establish office space (physical/virtual)
* Register with labor authorities if hiring employees
* Annual corporate filings with MCA
* Labor law compliance (PF, ESI, gratuity)
* Maintain statutory registers and records
* Annual director KYC and financial statements
Ongoing Compliance
* Voluntary Liquidation: Formal winding up process
* Sale/Transfer: Selling equity to another entity
* Merger/Amalgamation: Combining with another company
* RBI approval required for repatriation of capital
Step-By-Step Business Setup in India
Explore each phase of establishing your business in India with detailed breakdowns and expert insights.
FDI Entry Routes
Government Route
Automatic Route
Sector-Wise FDI Limits
FDI Policy Key Points
Updated: April 2025
Private Limited Company Registration Process
Step 1: Obtain Digital Signature Certificate (DSC)
Documents Required:
* Passport copy (for foreign nationals)
* Proof of address in home country
* Photograph
Step 2: Apply for Director Identification Number (DIN)
Each director must have a unique DIN, which can be applied for along with company incorporation using form SPICe+.• Passport copy (for foreign nationals)
• Proof of address in home country
• Photograph
Step 3: Reserve Company Name
Apply for name reservation through RUN (Reserve Unique Name) web service on the MCA portal.• Must not be identical/similar to existing company names
• Must end with “Private Limited” for a private company
Step 4: File SPICe+ Form
File the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form on the MCA portal with all required attachments.• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Declaration by directors
• Proof of registered office address
Step 5: Receive Certificate of Incorporation
Upon successful verification, the Registrar of Companies issues a Certificate of Incorporation with a Corporate Identity Number (CIN).• Permanent Account Number (PAN)
• Tax Deduction Account Number (TAN) Your company is now legally incorporated in India!
Key Requirements for Foreign Investors
Private Limited Company Registration Process
Bank Account Opening
Opening a corporate bank account in India requires in-person verification for foreign directors, though some banks now offer video KYC options.
Documents Required:
Recommended Banks:
Mandatory Registrations
Accounting & Compliance Setup
Implementing proper accounting systems from day one is essential to comply with Indian accounting standards and tax regulations.
Key Requirements:
Software Options:
Office Setup Options
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Frequently Asked Questions
Common questions about establishing and operating a business in India
There is no minimum statutory capital requirement for incorporating a private limited company in India. However, it is generally recommended to start with at least ₹1 lakh (approximately $1,200) for credibility purposes. The actual capital you should invest depends on your business requirements and industry regulations.
Yes, at least one director of your company must be a resident of India, defined as someone who has stayed in India for a minimum of 182 days during the previous financial year. This is a mandatory requirement under the Companies Act, 2013. Foreign companies typically either appoint a trusted local contact or use director services provided by corporate service providers.
The incorporation process typically takes 3-4 weeks from start to finish. This includes obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), name approval, and submission of incorporation documents. The process can be expedited if all documentation is properly prepared in advance.
As of 2025, the corporate income tax rate for domestic companies is 25% (for those with annual turnover up to ₹400 crore) or 30% (for companies with higher turnover). However, there's also an optional concessional tax regime with a 22% base rate. Foreign companies are taxed at 40%. Additional surcharges and cess may apply. India also has a Goods and Services Tax (GST) ranging from 5% to 28% depending on the product or service category.
Yes, foreign companies can establish a Branch Office (BO) in India with approval from the Reserve Bank of India (RBI). Branch offices are suitable for activities like export/import, professional consulting, or research. However, they have limitations on the activities they can undertake compared to a subsidiary. Branch offices cannot engage in manufacturing activities but can represent the parent company, export/import goods, provide professional services, and conduct research for the parent company.
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