How to Register a Company in India from the US (2026)

Want to register a company in India as a foreign business but not sure where to start?

Company registration in India is a fully digital process through the Ministry of Corporate Affairs. A foreign national can incorporate a private limited company in 2-4 weeks using the SPICe+ portal, with 100% foreign ownership allowed in most sectors.

India received $81.04 billion in FDI during FY2024-25, a 14% increase year-over-year, with cumulative FDI crossing $1.14 trillion since 2000 (source: Wisemonk India Investment Intelligence 2026). Over 185,000 new companies were registered in FY 2023-24 alone, including 5,164 foreign companies.

From our experience helping 300+ global companies build teams in India, the first decision every founder faces is whether to register a separate legal entity or start hiring through an Employer of Record instead. If you are still evaluating whether India is the right market for your business, read our guide on why global companies are expanding to India. This guide covers both paths.

What types of companies can you register in India?[toc=Types Of Company Registration in India]

India offers several business structures under the Companies Act 2013, but not all of them are available to foreign nationals. The right choice depends on your ownership goals, how you plan to raise capital, and the level of limited liability you need.

Here are the business entities most relevant for global companies:

1. Private Limited Company

A private limited company is the most common business structure for foreign companies entering India. It is a separate legal entity from its owners, meaning your personal assets are protected from business debts through limited liability protection.

You need a minimum of two shareholders and two directors, with at least one director who is a resident of India. There is no minimum paid up capital requirement. Foreign nationals can hold 100% ownership under the automatic FDI route in most sectors, which means no prior government approval is needed.

We've seen that most US and UK founders choose this structure because it allows them to raise capital from investors, issue equity, and build long-term credibility with Indian banks, partners, and customers.

2. Limited Liability Partnership (LLP)

A limited liability partnership combines the flexibility of a partnership firm with the limited liability of a company. Each partner's liability is limited to their capital contribution, and personal assets stay protected.

An LLP needs at least two partners, with at least one designated partner who is an Indian resident. There is no minimum capital contribution required.

One important difference for foreign companies: FDI in an LLP is not available under the automatic route. It requires prior approval from the Reserve Bank of India, which adds time and complexity to the registration process. LLPs work well for professional services and consulting firms, but if you plan to raise venture capital or private equity funding, a private limited company is the better fit.

3. One Person Company (OPC)

An OPC allows a single individual to form a company with limited liability protection while maintaining full control as the sole director and shareholder.

However, this structure is only available to Indian citizens. Foreign nationals and NRIs cannot register a One Person Company in India. If you are a solo foreign founder looking for limited liability, a private limited company with a nominee shareholder arrangement is the standard alternative.

4. Sole Proprietorship and Partnership Firm

A sole proprietorship is the simplest business entity to set up, but the owner has unlimited liability. A partnership firm works similarly for two or more people who agree to share profits, governed by the Indian Partnership Act, 1932.

Neither structure provides limited liability protection, and neither is practical for foreign companies looking to register a company in India. These are primarily used by domestic companies and small businesses.

Which business structure is right for you?

For most foreign companies, the decision comes down to a private limited company or an LLP. Here is how to think about it:

• If your goal is raising capital, attracting investors, or scaling operations in India, go with a Private Limited Company.
• If you are running a professional services or consulting firm with no plans to raise external funding, an LLP offers lower compliance costs with limited liability.
• If you are a solo founder, a Private Limited Company with a nominee shareholder is the recommended path since OPC is not available to foreign nationals.
• If you want to start hiring in India quickly without registering any business entity at all, an Employer of Record like Wisemonk EOR lets you onboard employees in days. Many US companies also explore offshoring to India as a first step before deciding on a permanent structure.

To understand the full cost and compliance tradeoffs between setting up your own entity and using an EOR, use our free EOR vs. Entity Calculator.

Now that you know which structure fits your goals, let's walk through the actual company registration process step by step.

How can a foreign company register in India?[toc=6-Step Process]

The entire company registration process runs through the MCA's SPICe+ portal. Here is the step-by-step process for registering a private limited company as a foreign business.

Step 1: Obtain a Digital Signature Certificate (DSC)

Every proposed director needs a DSC to sign incorporation documents electronically. Foreign directors can get one from certified agencies like eMudhra or nCode in 3-5 working days.

Important: all documents from foreign nationals must be notarized and apostilled before submission. This is the most common reason applications get rejected, so complete it before you start filing.

Step 2: Reserve your company name (RUN)

File SPICe+ Part A on the MCA portal to reserve a unique company name. You can propose up to two names per application. The name must not match any existing company, LLP, or trademark, and must end with "Private Limited." Approval takes 1-2 working days.

Step 3: File SPICe+ Part B for incorporation

Once the name is approved, file Part B within 20 days or the reservation expires. This is the core incorporation form where you provide your registered office address, authorized capital, and company details for all shareholders and directors.

You can apply for a Director Identification Number (DIN) for up to a maximum of three directors directly within this form. At least one director must be an Indian resident.

Step 4: Submit MoA, AoA, and linked forms

Along with Part B, you file the e-MoA (INC-33) defining your company's objectives and e-AoA (INC-34) setting internal governance rules. The AGILE-PRO-S form (INC-35) simultaneously registers your company for PAN, TAN, EPFO, ESIC, and GST in one shot.

Upload all documents as PDFs, affix digital signatures, and pay government fees plus stamp duty (varies by state).

Step 5: Receive your Certificate of Incorporation

The Registrar of Companies reviews your application and, if approved, issues the Certificate of Incorporation within 2-5 working days. This certificate includes your Company Identification Number (CIN), PAN, and TAN.

Step 6: Complete post-registration requirements

This is where most foreign companies lose time:

• Open a company bank account using your certificate and PAN. Budget 3-4 weeks for this in India due to KYC procedures.
• Transfer FDI from the parent company through proper banking channels.
• File FC-GPR with the Reserve Bank of India within 30 days of share allotment. Missing this triggers penalties.
• Appoint an auditor within 30 days and hold your first board meeting within 30 days of incorporation.
• File the Commencement of Business declaration (INC-20A) within 180 days.

From our experience helping global companies set up in India, the registration itself is straightforward. Delays almost always come from apostille of foreign documents, bank account opening, and missed FC-GPR deadlines.

If you want to skip entity setup entirely and start hiring in India within days, an Employer of Record handles all compliance without requiring a registered company.

Here is exactly which documents you will need to have ready.

What documents are required for company registration in India?[toc=Documents Required]

The required documents depend on whether directors are Indian residents or foreign nationals. Here is the complete checklist for a private limited company.

For foreign directors and shareholders:

• Valid passport, notarized and apostilled in the country of issue.
• Address proof from home country (utility bill or bank statement, not older than 1 year), notarized and apostilled.
• Passport-sized photograph.
• Digital Signature Certificate (DSC) from an Indian-certified agency.
• Director Identification Number (DIN), applied through the SPICe+ form.
• Documents in a foreign language need an official English translation, also apostilled.

For the Indian resident director:

• PAN card (mandatory as primary ID proof).
• Aadhaar card or voter ID.
• Address proof not older than 2 months (utility bill, bank statement, or phone bill).
• Passport-sized photograph, DSC, and DIN.

For the registered office:

• Utility bill (electricity, gas, or water) not older than 2 months.
• Rental agreement or ownership proof.
• No objection certificate from the property owner.

Company incorporation documents:

• Memorandum of Association (MoA) and Articles of Association (AoA).
• Declaration by proposed directors (Form INC-9).
• Board resolution and certificate of incorporation from the parent company, apostilled (for subsidiary setups).

One detail most guides miss: foreign nationals cannot use the standard e-MoA and e-AoA forms. Under Rule 13(5) of the Companies (Incorporation) Rules, 2014, the MoA and AoA must be physically signed and apostilled when signed by a person outside India.

Start the apostille process at least 2-3 weeks before you plan to file. From our experience, document preparation is the single biggest cause of delays for foreign companies.

Now let's look at what the entire registration process will cost you.

How much does it cost to register a company in India?[toc=Cost Of Company Registration in India]

For a foreign business registering a private limited company, the total cost typically ranges from $750 to $1,500 (~₹60,000 to ₹1,25,000). Here is the breakdown:

Stamp duty is the biggest variable. States like Karnataka and Tamil Nadu charge lower stamp duty, while Gujarat and Maharashtra tend to be higher. Professional fees also vary based on the complexity of the setup, especially for foreign subsidiaries that need FEMA compliance and RBI reporting support.

Companies with authorized capital up to ₹15,00,000 (~$18,000) are incorporated at zero government fees, a policy the government introduced to reduce the cost of starting a business in India.

By comparison, using an Employer of Record like Wisemonk EOR starts at $99/employee/month with no setup cost, no stamp duty, and no registration fees. To compare the full cost of both approaches side by side, try our EOR vs. Entity Calculator.

Now let's look at the realistic timeline for the entire process.

How long does it take to register a company in India?[toc=Timeline]

For Indian residents, the registration process takes 7-15 working days. For foreign companies, expect 3-4 weeks due to apostille requirements and additional documentation.

More companies from more countries are registering in India every year, and the MCA has streamlined the process to match this demand.

The two steps that take longest for foreign companies are apostille of documents and opening a bank account. Start the apostille process before you do anything else, and factor in the bank timeline when planning your first day of business operations.

Now let's look at why companies register an entity in India in the first place.

Why should you register your company in India?[toc=Why Register Company in India]

A registered company in India is a separate legal entity under the Companies Act 2013. Here is what that gives you as a foreign business:

• Limited liability protection. Your personal assets stay protected from business debts. This is the primary reason foreign nationals choose a private limited company over informal structures.
• 100% foreign ownership in most sectors under the automatic FDI route, with no prior government approval needed. According to Wisemonk's India Investment Intelligence 2026 report, the number of FDI source countries investing in India has grown from 89 in FY2014 to 112 in FY2025.
• Ability to raise capital. Only a private limited company can issue equity shares, preference shares, and ESOPs, making it the structure VCs and PE investors require.
• Tax benefits under the Income Tax Act, including 15% corporate tax for new manufacturing companies and three-year profit tax exemption under Startup India for eligible startups.
• Market credibility. A Company Identification Number lets you open a business bank account, enter contracts, and build trust with Indian banks and partners.
• Perpetual existence. Unlike a sole proprietorship, a registered company continues regardless of changes in directors or ownership.

India's economy has crossed $4 trillion in nominal GDP, growing at 7.3% in FY2025-26, more than double the 3.3% global average (Source: Wisemonk India Investment Intelligence 2026). For a broader overview of what it takes to operate here, read our complete guide on doing business in India. For companies planning to build a GCC in India or scale long-term operations, a registered entity is the foundation.

That said, the process has its challenges. Here is what to watch out for.

What challenges might you face as a foreign business?[toc=Challenges]

From our experience helping 300+ global companies set up in India, these are the hurdles that cause real delays:

• Document authentication takes 2-3 weeks. Every foreign document must be notarized and apostilled before MCA accepts it.
• Company name rejections are common. The name cannot match any existing company, LLP, or trademark in India, and most foreign applicants need 2-3 attempts.
• You need an Indian resident director who has lived in India for 182+ days in the preceding year. No exceptions.
• Bank account opening takes 3-4 weeks for foreign-owned entities due to enhanced KYC, delaying the start of business operations.
• Ongoing compliance is mandatory. Annual returns, auditor appointment within 30 days, annual general meeting, statutory registers, and income tax return filings every year.
• Transfer pricing rules apply to subsidiaries. Transactions between your Indian entity and foreign parent must be at arm's length, adding 15-20% in compliance costs.

These are manageable with preparation. Companies that are outsourcing to India for the first time often start with an Employer of Record to skip entity setup entirely and begin hiring within days.

So the real question is: do you actually need an entity?

Do you need an entity, or can you use an EOR instead?[toc=EOR Vs. Own Entity Setup]

This is the question most founders should answer before starting the registration process. Not every company hiring in India needs its own legal entity.

An Employer of Record is a third-party company that legally employs workers in India on your behalf. You manage the day-to-day work. The EOR handles payroll, compliance, taxes, contracts, and benefits. No entity registration, no bank account setup, no ongoing MCA filings.

Here is how the two options compare:

Choose an entity when you are hiring 20 or more people, plan to stay in India long-term, need full control over HR policies, or want to raise capital locally.

Choose an EOR when you are hiring your first 1-20 employees, need to start within days, want to test India before committing to an entity, or do not have the bandwidth to manage Indian compliance.

Many companies start with EOR and transition to their own entity once the team grows past 15-20 people. Some scale further by establishing a captive center in India for full operational control. For a detailed cost comparison of both models, read our guide on Employer of Record vs Own Entity.

Start your India expansion with Wisemonk EOR[toc=Wisemonk EOR]

Wisemonk is a trusted Employer of Record in India, helping global companies hire, pay, and manage employees without setting up a legal entity. With 300+ companies served, 2,000+ employees managed, and $20M+ in payroll processed, we support every path to India expansion, whether you choose EOR, entity setup, or a combination of both.

Here is what we offer:

• Employer of Record: Hire and onboard employees in India in 2-3 days with full compliance. We handle payroll, PF, ESI, gratuity, TDS, professional tax, employment contracts, and onboarding. Starting at $99/employee/month.
• Contractor of Record: Compliant contractor management with proper classification, invoicing, and tax compliance so you avoid misclassification risk.
• Contractor Payments: Pay Indian contractors on one platform at $19/month + 1% over settlement rate.
• Managed Payroll: If you already have an entity in India, we handle end-to-end payroll processing, statutory filings, and compliance at $49/employee/month.
• GCC Setup: End-to-end support for setting up and scaling your Global Capability Center in India, from legal setup to talent acquisition. Read our India GCC Landscape Report for the latest market data.
• Recruitment: Find top Indian talent across engineering, finance, operations, and GTM roles through our in-house recruiting team and verified talent network.
• Entity Setup Assistance: If you decide to register your own company, we guide you through the entire process, from structure selection to post-incorporation compliance.

We also handle background verification, equipment procurement for remote teams, and visa and work permit support for foreign nationals.

Every client gets a dedicated HR manager. No chatbots, no ticket queues. Our tax optimization structure increases employee take-home pay and improves retention, a benefit no global EOR provides at this depth.

Wisemonk EOR is rated 4.8/5 on G2, recognized for Fastest Implementation, Best Relationship, and Easiest To Do Business With.

Talk to our India expansion experts today.