- India allows 100% foreign ownership under the automatic route in most sectors, and incorporation is fully online via the MCA SPICe+ form.
- Four steps: get DSCs, reserve the name (SPICe+ Part A), file Part B with the MoA and AoA, then get the Certificate of Incorporation.
- Foreigners also need apostilled, English documents and at least one India-resident director (182+ days in the prior year).
- Budget about $750 to $1,500 (₹60,000 to ₹1,25,000) and 6 to 8 weeks for a foreign-owned private limited company.
- An Employer of Record skips incorporation entirely: hire and pay staff in India in days, with no entity and no MCA filings.
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Company registration in India is now a fully online process, and a foreign company can own 100% of the business in most sectors.
This guide is for US and UK founders deciding how to enter India, and whether you even need an entity yet.
We cover the steps, entity types, costs, and taxes from 300+ India-entry decisions, then show the faster EOR alternative if you only want to hire talent in India.
What are the four steps to register a company in India?
Four online steps through the MCA SPICe+ form: get Digital Signature Certificates, reserve the name, file the incorporation application with your charter documents, then receive the Certificate of Incorporation. SPICe+ bundles name, incorporation, DIN, PAN, and TAN.
- Get DSCs: every director and subscriber needs a Digital Signature Certificate to sign MCA forms, issued in a day or two.
- Reserve the name: submit up to two names via SPICe+ Part A on the MCA portal; an approved name holds for 20 days.
- File SPICe+ Part B: lodge the MoA and AoA and registered-office proof; this filing also allots DIN, PAN, and TAN.
- Get the COI: the Registrar issues the Certificate of Incorporation with a CIN, and your company legally exists.
Before you file, pick the structure that fits, because it sets your ownership and compliance load.
Which business structure should you choose to register in India?
Most foreign entrants pick a Private Limited Company: 100% foreign ownership, limited liability, and the structure investors expect. Other options are an LLP, OPC, wholly-owned subsidiary, or a non-entity branch, liaison, or project office.
How the main options compare:
| Structure | Best for | Min members | Foreign ownership | Compliance load |
|---|---|---|---|---|
| Private Limited Company | Funded startups, full India operations | 2 shareholders, 2 directors | 100% (automatic route, most sectors) | High |
| LLP | Professional services, consulting | 2 partners | 100% (automatic, no performance conditions) | Medium |
| One Person Company | Solo resident-Indian owners | 1 | Not available to foreign nationals | Medium |
| Wholly-Owned Subsidiary | Foreign parent wanting a permanent arm | 2 directors | 100% | High |
| Branch Office | Defined commercial activity, no subsidiary | RBI approval | Extension of foreign parent | High |
| Liaison Office | Market research, no income | RBI approval | Extension of foreign parent | Medium |
| Project Office | A single India project | RBI approval | Extension of foreign parent | Medium |
A wholly-owned subsidiary is just a private limited company with a foreign parent holding 100%. For the wider picture, see business setup in India; solo domestic owners can compare a sole proprietorship.
Foreign founders face a few extra requirements on top of these steps, so let us cover those next.
How can a foreign company or NRI register a company in India?
The same SPICe+ route, plus three things: the investment must follow FDI rules, foreign documents must be apostilled and translated to English, and at least one director must be India-resident. After incorporation you report share allotment to the RBI.
What foreign founders need to handle:
- 100% FDI, automatic route: allowed in most sectors with no prior approval; sensitive sectors need approval, per the DPIIT FDI policy.
- Apostille and translation: passports and proofs need an apostille (US and UK are Hague members) and English translation, adding about $60 to $250 (₹5,000 to ₹20,000).
- Resident director: Section 149(3) requires one director resident 182+ days; founders often use a nominee until a local hire lands. Watch for permanent establishment risk.
- RBI/FEMA filing: report share allotment on Form FC-GPR within 30 days, just as you would not skip GST registration.
The SPICe+ filing is the easy part. For foreign founders, the timeline lives in apostille, translation, and courier, not the form.
With the who and how covered, here is exactly what paperwork you will gather.
What documents are required to register a company in India?
Identity and address proof for every director and shareholder, registered-office proof, and the charter documents (MoA and AoA). Indian nationals give PAN and Aadhaar; foreign nationals give an apostilled passport and address proof.
The core checklist:
- Indian directors and shareholders: PAN, Aadhaar, a recent address proof, and a passport-size photo.
- Foreign directors and shareholders: apostilled passport and address proof in English, a photo, plus the parent's board resolution and incorporation docs for a corporate shareholder.
- Registered office: a recent utility bill, a no-objection certificate from the owner, and the rent or lease agreement if rented.
With papers ready, the next questions are always cost and timeline.
How much does company registration in India cost and how long does it take?
About $750 to $1,500 (₹60,000 to ₹1,25,000) all-in for a foreign-owned private limited company, with government fees scaling by authorized capital. Officially 2 to 4 weeks, realistically 6 to 8 once apostille and translation are counted.
| Item | Cost (USD / INR) | Timeline |
|---|---|---|
| Digital Signature Certificates (DSC) | ~$25 to $60 (₹2,000 to ₹5,000) per person | 1 to 2 days |
| Name reservation (SPICe+ Part A) | ~$12 (₹1,000) | 1 to 3 days |
| Government and stamp fees | Scale with authorized capital | Filed with Part B |
| Professional / incorporation fees | ~$350 to $900 (₹30,000 to ₹75,000) | 1 to 2 weeks |
| Apostille and translation of foreign documents | ~$60 to $250 (₹5,000 to ₹20,000) | 1 to 3 weeks |
| Total (all-in) | ~$750 to $1,500 (₹60,000 to ₹1,25,000) | 6 to 8 weeks realistically |
Costs do not stop at incorporation. To model the true cost of a person on the ground in India, use our employee cost calculator.
Then the recurring part begins: tax and compliance.
What taxes and compliance apply after you register?
Corporate income tax, GST if turnover thresholds are crossed, payroll obligations, and recurring MCA filings. The compliance calendar starts immediately, so budget for a company secretary or accountant from day one. Rates below are as of July 2026.
The main heads:
- Corporate income tax: 22% base under Section 115BAA (about 25.17% effective). The 15% rate under 115BAB has sunset for new incorporations. The Income Tax Act 2025 applies from April 1, 2026.
- GST: register once turnover crosses about ₹40 lakh for goods or ₹20 lakh for services. Since the September 2025 reform the GST rates in India sit on four slabs, 0%, 5%, 18% and 40% for luxury and sin goods, with most business services at 18%.
- Payroll: PF, ESI, monthly TDS, and state professional tax, under India's four Labour Codes (in force since November 21, 2025). Many outsource this via managed payroll; here is how to pay employees in India.
- Annual MCA filings: AOC-4, MGT-7, and DPT-3 each year, plus statutory audit and director KYC. Late filings carry daily penalties.
An Indian company can elect a 22% corporate rate, about 25% effective. The same business run as a branch of your foreign company is taxed at 35% plus surcharge and cess. Incorporating is not just paperwork, it is a tax decision, and we work it through in business setup in India.
All of that raises a fair question: do you even need an entity yet?
Should you register an entity or use an Employer of Record instead?
Register an entity for full control, holding assets or IP in India, or a large permanent operation. Use an Employer of Record to hire a few people fast with no incorporation, filings, or resident-director burden. The EOR is the legal employer and owns compliance.
The break-even is not a headcount, it is a purpose. If you need to hold IP, sell locally or raise money in India, incorporate. If you only need people on the ground, an entity is overhead you have not earned yet.
| Factor | Own entity | EOR (Wisemonk) |
|---|---|---|
| Time to start hiring | 6 to 8 weeks | A few days |
| Setup cost | ~$750 to $1,500 upfront | No entity cost; from $99/employee/month |
| Resident director | Required | Not required |
| Compliance ownership | You (or your CS/CA) | Wisemonk |
| Ongoing MCA filings | Yes, every year | None for you |
| Best for | Large, permanent operations | Fast, lean, or testing the market |
Model the break-even with our EOR vs entity calculator. Other lean routes: build-operate-transfer, a captive engineering center, or a PEO.
Whichever route you pick, here is how we help you take it.
How does Wisemonk help you enter India?
Wisemonk is an India-native Employer of Record that helps you hire, pay, and manage talent in India without a local entity. More than 300 global clients work with us, we manage over 2,000 employees, we process $20M+ in annual payroll, and we hold a 4.8 out of 5 rating on G2. EOR pricing starts from $99 per employee per month.
So you can enter India at the right speed: hire now through an EOR, or set up an entity later, without defaulting straight to incorporation.
What we handle:
- Employer of Record: hire in days with no entity via EOR in India.
- PEO and payroll: support for an entity you already own through PEO services in India, plus managed payroll with statutory filings handled each cycle.
- Entity and expansion support: when you are ready to incorporate or scale a center.
- Proven track record: see why we rank among the best EOR services in India.
- Avoid the pitfalls: sidestep the common mistakes US companies make hiring in India.
We provide EOR services in India, and we are expanding rapidly into the US and UK markets.
Ready to hire or expand in India?
Skip the entity setup and start building your India team with Wisemonk EOR.
Frequently asked questions
What are the four steps of company registration in India?
First, obtain Digital Signature Certificates for directors. Second, reserve the company name via SPICe+ Part A. Third, file SPICe+ Part B with the MoA and AoA, which allots DIN, PAN, and TAN. Fourth, receive the Certificate of Incorporation from the Registrar.
How long does registration take for a foreign company?
Officially about 2 to 4 weeks, but realistically 6 to 8 weeks. The delay comes from apostille or notarization of foreign documents, English translation where needed, and courier time, not from the SPICe+ filing itself, which the MCA processes fairly quickly once documents are ready.
What is the minimum capital for a private limited company in India?
There is no prescribed minimum paid-up capital for a private limited company in India; the earlier ₹1 lakh requirement was removed. You can incorporate with a nominal amount, though government registration fees scale with the authorized capital you choose to declare.
Can a foreign national own 100% of an Indian company?
Yes. In most sectors India permits 100% foreign direct investment under the automatic route, with no prior government approval. A minority of sensitive sectors carry caps or need approval under the DPIIT FDI policy, so confirm your specific sector's route before you invest.
Does every Indian company need a resident director?
Yes. Under Section 149(3) of the Companies Act 2013, every company must have at least one director who stayed in India for 182 days or more in the prior financial year. Foreign founders often appoint a professional nominee resident director until a local hire is in place.
What is the difference between DIN and DSC?
A Digital Signature Certificate (DSC) is the electronic signature used to sign MCA forms. A Director Identification Number (DIN) is the unique ID assigned to a director. You need a DSC to file, and the DIN is allotted through the SPICe+ incorporation form itself.
How much does it cost to register a company in India from the US?
Budget roughly $750 to $1,500 (₹60,000 to ₹1,25,000) all-in, including professional fees, with government fees scaling by authorized capital. Apostille and translation of US documents add about $60 to $250. A Wisemonk EOR avoids incorporation cost entirely, starting at $99 per employee per month.
