Any person can start their business in India. There is no restriction in doing business here by anyone, viz., Non Resident Indians (NRI), Foreign Citizens, Overseas Citizen of India card holder (OCI), Person of Indian origin (PIO). Numbers of options are available for foreign nationals to set up a business in India, but most popular forms are Private Limited Company and Limited Liability Partnership.
PRIVATE LIMITED COMPANY
The minimum requirements for starting a Private Limited Company are to have 2 directors, 2 shareholders and an office address in India. However, one of the directors must be an Indian Citizen and an Indian Resident. The most preferable model of company formation in India by a foreign national is with 3 directors, i.e., two foreign nationals and one Indian resident. As there is no minimum requirement for Indian shareholding, 100% share of such company can be held by foreign citizens.
Main points to be noted by a foreign national before setting up a Private Limited Company in India are:
1. DSC for directors.
All the documents and photograph in the application of foreign national need to be Notarised/Apostiled in their home country. If the documents are not in English, then it needs to be translated into English by the official translator and to be notarised. (Documents include Passport along with an address proof. Address proof may be driving license, bank statement, etc.)
2. Presence in India
The foreign national needs to be present in India for signing an Affidavit at the later stage of incorporation. His arrival should be in Business Visa.
The foreign national requires to strictly following RBI & FEMA guidelines before making investment in the proposed business. 100% Foreign Direct Investment is allowed in India in many of the industries under Automatic Route.
LIMITED LIABILTY PARTNERSHIP
Like Private Limited Company, LLP also require minimum of two persons and one must be an Indian Citizen or Indian Resident. All the points in the formation of a Private Limited Company required to be noted for setting up a LLP in India by foreign national, like attestation of documents, FDI, etc.
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