Foreign Individual Guide

Company Registration for Foreign Nationals in India

A foreign citizen — not only a foreign company — can start and own a company in India. Here's what individual founders need for directorship, shareholding and KYC.

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In short: A foreign national can be both director and shareholder of an Indian private limited company, holding up to 100% of the shares where the sector permits under the automatic FDI route. At least one director must be resident in India, and the foreign individual's passport (and address proof) must be apostilled or consular-notarised for KYC. Incorporation is via MCA SPICe+, followed by FC-GPR reporting to the RBI.

Can a foreigner start a company in India?

Yes. Under the Companies Act, 2013 and the FEMA NDI Rules, foreign individuals may be directors and shareholders of an Indian company. There is no requirement to hold an Indian visa, PAN in advance or Indian address to be a shareholder — a resident-Indian co-director on the board, as required by Section 149(3) of the Companies Act, 2013, is enough.

If you are an NRI or OCI cardholder rather than a non-Indian-origin foreign national, the funding and repatriation rules differ — see NRI business setup in India. Where the investor is a foreign company rather than an individual, start at foreign company formation in India.

Documents & KYC for a foreign director

Passport — mandatory photo ID
Overseas address proof — recent bank statement, driving licence or utility bill
Recent passport-size photograph
Apostille (for Hague-convention countries) or consular attestation (for non-convention countries)
Digital Signature Certificate (DSC) — Class 3, in the director's name

Documents in a language other than English must be accompanied by a certified translation.

Director requirements

Director Identification Number (DIN) allotted via SPICe+ at incorporation
At least one director must be resident in India — 182+ days in the financial year, per Section 149(3) of the Companies Act, 2013
A foreign national can be an Executive Director and even Managing Director
KYC re-filing (DIR-3 KYC) annually

Each foreign director needs a Class 3 Digital Signature Certificate (DSC) to sign MCA filings, and their passport and address proof must be apostilled (Hague-convention countries) or consular-attested before upload (position as of 2026).

Shareholding & FDI

Up to 100% foreign shareholding is permitted under the automatic route in most sectors — no prior government approval, only post-investment FC-GPR reporting to the RBI. A few regulated sectors carry equity caps or require government approval. Confirm your sector on FDI entry routes and sector caps.

The setup process

Incorporation is via the MCA SPICe+ integrated form, followed by bank account opening, INC-20A commencement filing and FC-GPR reporting. For the full step-by-step, see wholly owned subsidiary in India. NRI founders should also read NRI business setup for the NRE / NRO repatriation nuances that don't apply to non-Indian-origin foreign nationals.

Not sure a company is the right vehicle? Compare it against the alternatives in branch vs liaison vs project office vs subsidiary. For fees, government charges and a week-by-week schedule, see the cost and timeline guide for company setup in India.

Once the company is trading, dividends and sale proceeds flow back to the founder under the mechanisms described in profit repatriation from India.

Frequently asked questions

Can a foreign national register a company in India?

Yes. A foreign citizen can incorporate an Indian private limited company as its director and shareholder, holding up to 100% of the shares in most sectors under the automatic FDI route, with at least one resident-Indian co-director.

Does a foreigner need to live in India to own an Indian company?

No. A foreign shareholder or director need not reside in India, but the company must have at least one director who is resident in India (present 182+ days in the financial year).

What documents does a foreign director need?

A valid passport as identity proof, an overseas address proof, and a photograph — apostilled (for Hague-convention countries) or attested by the Indian consulate (for others). A Digital Signature Certificate is then issued for filings.

Can a foreign national own 100% of an Indian company?

Yes, in sectors that permit 100% FDI under the automatic route — which is most of them. Sector caps apply in a few regulated areas; we confirm the position for your activity.

Can a foreigner be the Managing Director of an Indian company?

Yes. A foreign national can be appointed director and Managing Director; the company must still have at least one resident-Indian director on the board.

How is a foreign national different from an NRI when setting up in India?

The incorporation route is identical, but funding differs. An NRI may invest from NRE or NRO balances under Schedules I and IV of the FEMA NDI Rules, while a non-Indian-origin foreign national invests only by inward remittance through banking channels. Both require a resident-Indian director under Section 149(3) and FC-GPR reporting within 30 days.

Last reviewed: July 2026 · Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates.

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