Doing Business in India – Complete Guide for Foreign Companies

India business entry guide

Doing business in India: a practical roadmap from first hire to managed entity.

Use this guide to choose the right India entry route — EOR, PEO, private limited company, wholly owned subsidiary or managed compliance — and understand the steps needed to operate cleanly.

Market assessmentEOR vs entityFDI / FEMACompany setupPayrollGST / TDSROC / MCA
Downloadable guide

Keep the India entry checklist handy.

Download a concise PDF version covering market assessment, EOR vs entity route, FDI/FEMA, incorporation, banking, payroll, GST, TDS and recurring compliance.

Download India Business Guide PDF
Interactive guide

Choose your India entry route.

We need to hire India employees quickly

Start with Employer of Record services if you want India employees before setting up a company. This keeps entry lean while payroll and employment administration are handled locally.

Explore EOR India →
We already have an Indian entity

Use PEO and managed compliance support for payroll, HR operations, PF/ESI/TDS/PT, accounting, GST, TDS and compliance calendar management.

Explore PEO India →
India is now strategic for us

Plan private limited company setup, wholly owned subsidiary or LLP route with FDI/FEMA, bank, GST, payroll and post-incorporation compliance designed from the start.

Explore entity setup →
Detailed roadmap

Step-by-step business setup in India.

01

Market assessment

Define the India opportunity: customer segment, target states/cities, hiring need, delivery model, sector rules and whether India is a sales market, delivery hub or full operating base.

  • Customer and competitor assessment
  • Hiring and location plan
  • Sector/regulatory review
02

FDI and FEMA route

Check whether foreign investment falls under automatic route or government approval route, and plan shareholding, funding, pricing and reporting before funds move.

  • Sector-wise FDI limits
  • Funding and ownership structure
  • RBI/FEMA reporting context
03

Choose structure

Compare EOR, PEO, Private Limited Company, Wholly Owned Subsidiary and LLP based on urgency, control, liability, compliance burden and long-term India plans.

  • EOR for early hiring
  • Pvt Ltd/subsidiary for owned operations
  • LLP for specific service models
04

Incorporation and registrations

Coordinate name approval, directors/shareholders, apostilled documents, registered office, PAN, TAN, GST and other registrations required to operate.

  • MCA/ROC incorporation
  • PAN, TAN and GST
  • Registered office and documentation
05

Banking and operations

Open bank account, set up accounting, payroll, offer letters, vendor workflows, invoice process and compliance calendar before transactions start flowing.

  • Bank account readiness
  • Accounting system and chart of accounts
  • Payroll and HR documentation
06

Recurring compliance

Run payroll, PF, ESI, professional tax, TDS, GST, bookkeeping, bank reconciliation, ROC/MCA and FEMA/FDI reporting as a connected operating rhythm.

  • Payroll + statutory deductions
  • GST/TDS + books
  • ROC/MCA + annual compliance
Structure comparison

Common India entry options for foreign companies.

EOR India

Best for testing India hiring without opening a company first.

Fastest route

PEO India

Best when your Indian entity exists but HR, payroll and compliance need support.

Operating support

Private Limited Company

Common choice for scalable owned India operations, customers and employees.

Most common

Wholly Owned Subsidiary

Suitable for foreign companies needing full ownership and control, subject to FDI/FEMA.

Full control

LLP

Can work for some service models, but foreign investment conditions need careful review.

Selective use
INDIA BUSINESS GUIDE

Doing business in India: choose the right entry route before you commit.

This guide keeps the important long-tail themes from the original India business guide — market assessment, FDI entry routes, Private Limited vs LLP, bank account opening, payroll, GST, TDS, ROC/MCA and ongoing compliance — in a practical route-map format.

Validate the India business case

Review customers, state/location, competition, hiring model, pricing and sector-specific rules before committing capital.

Choose the right entry route

EOR, company incorporation, wholly owned subsidiary, LLP or branch decisions should follow business intent and regulatory fit.

Plan FDI, tax and banking early

Foreign investment, FEMA reporting, transfer pricing, bank account opening, PAN, TAN and GST shape the setup timeline.

Operate with a compliance calendar from day one

Payroll, GST, TDS, accounting, ROC/MCA and annual filings should be connected immediately after launch.

SetMyCompany view

The safest India plan is staged, not rushed.

Start with the lightest compliant route that achieves your business objective. Use EOR if you are testing hiring, incorporate when India becomes strategic, then manage payroll, accounting, tax and compliance as one system.

FAQ

Doing business in India questions

What is the easiest way to start in India?

For many companies, EOR is the fastest compliant way to hire India employees before entity setup.

When should we open an Indian company?

When India is no longer an experiment — usually when headcount, revenue, customer needs, bank/payment requirements or control needs justify it.

Do foreign companies need FDI/FEMA review?

Yes. Foreign ownership, funding, pricing and reporting should be reviewed before investment or incorporation decisions are finalised.

Can setup and operations be managed together?

Yes. That is preferred because incorporation, payroll, GST, TDS, accounting, ROC/MCA and FEMA/FDI reporting are connected.

Want a route map for your India entry?

Tell us whether you need hiring, entity setup, payroll or full managed operations. We’ll recommend the cleanest sequence.

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