Incorporating an Indian Business Entity
Any entry in India for the purpose of establishment of a business entity or earning revenue shall be governed by the FEMA Regulations. Persons resident outside India need to ensure that the conditions specified under the FDI guidelines are complied with. The Guidelines prescribe different routes for non-residents for investing in various sectors in India viz. Automatic Route, Government Approval Route and Prohibited Sectors.
Foreign investment in most of the sectors (more than 90%) falls under 100% automatic route of the FEMA Regulations.Automatic Routeis the entry route through which investments by a person resident outside India does not require any prior approval from Reserve Bank of India (RBI) or Government of India. Only such activities, which are covered under Automatic Route (and are not specifically prohibited), can be carried without obtaining RBI Approval. You can learn more about the industry specific limitsand get answers to some common questions related to FDIbefore making your investment decision.
India offers a variety of business structures which can be adopted by foreign national / entity. The choice of business structure entirely depends upon the end goals to be achieved. The structure should be based on the idea of investment, your preferences on terms like liability, control, purpose of formations, expected lifeline of business, compliances, etc. Here is the list of entities that a foreign resident can register.
For having better insight on various types of business models prevalent in India and their feasibility for Non-Residents (NR), you may go through the following links:
Most Popular Structure to do Business in India by a Non-Resident
Incorporation of a Private Limited Company is the easiest, fastest and most preferred entry structure by Non-Residents. For better insight you may like to go through our detailed article on procedure of incorporating a private limited company.
What makes India attractive for Investments?