Company Registration with FDI

Foreign entities can enter the Indian market with FDI(Foreign Direct Investment) into Private Limited Companies. Filecrat handles complete registration process with its team of experienced professionals.

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Company Registration with FDI

In India, foreign nationals/entities have no restriction to incorporate a company in India. The entry in the Indian market with foreign direct investment is subjected to the provisions of the Foreign Exchange Management Act (FEMA) and permission of the Reserve Bank of India (RBI). It is important to mention that foreign direct investment is not permissible in the business of proprietorship and partnership. Further, the registration and investment of such entities must be succeeded by the formal reporting to RBI.

Key notes about Foreign Direct Investment (FDI) in India
  • It is not permissible in proprietorship and partnership business
  • In India, there are two routes for FDI:

1. Automatic Route: FDI is permitted up to 100% in most of the sectors other than those sectors which are capped or are restricted.

2. Approval Route: Prior approval from the Foreign Investment Promotion Board (FIPB) of the Government of India is required under this route.

  • It takes minimum 15 days for incorporation of a company in India
  • Registration in India bounds the company to a formal reporting to RBI within 30 days of capital infusion and also about every step of the company.

Benefits & Advantages

  • Perpetual Succession
  • Foreign Direct Investment in India.
  • Acquiring the property in India becomes easier
  • Limited liability of directors and shareholders
  • Friendly business laws and developing economy make it less risky to enter the market and expand the business.


  • The documents required for FDI Company Registration must be latest and eligible.
  • There must be at least one resident director of the company who stays for at least 182 days of a financial year in India
  • The documents for the registration must be legalized or attested by the Indian embassy present in their country.


STEP 1: Attestation of all the documents signed by the proposed director and shareholder by the Indian Embassy present in their country along with their passport and address proof.


In case the foreign national is already in India under business visa with all the original documents then in that situation it can be attested in India.

STEP 2: Application for setting up offices through Form FNC-1 to RBI along with the attested documents.

STEP 3: Issuance of Digital Signature Certificate of directors and promoters.

STEP 4: Application for reservation of name of the company, DIN (Director Identification Number), incorporation of a company, PAN/TAN through SPICe (Simplified Proforma for Incorporating a Company Electronically) form.

STEP 5: Registrar of Company will issue “Certificate of Incorporation”.

STEP 6: Opening of a bank account as the foreign direct investment must reach within 180 days of incorporation of the company with advance intimation to Banker.

What's included

  • Name approval in RUN (Reserve your unique Name)
  • 2 Directors DIN
  • 2 Directors DSC
  • Filing of E-forms with the Registrar of Companies (ROC)
  • MOA + AOA
  • Company PAN Card
  • Company TAN/TDS Number
  • Issue of Incorporation Certificate
  • Consultation with our Experts

Documents Required

  • Documents of resident Indian designated director/shareholder.

1. PAN Card

2. Identity Proof - Voter ID Card/Driving License/Passport

3. Address Proof - Bank Statement/Electricity/Telephone Bill

  • Attested original documents (signed by the proposed director and shareholder) by the Indian Embassy present in their country.
  • Business Visa of foreign director/shareholders if present in India.
  • Copy of FIPB /RBI approvals.
  • List and signed declarations of directors/shareholders/promoters.
  • Board resolution approving incorporation of company in India.
  • Proof of address of registered office of the company along with the NOC from the owner of premises.
  • Latest utility bills.
  • Memorandum of Association or Charter Document.
  • Articles of Association.
  • Power of Attorney in the favour of authorized representative in India.
  • Audited Financial Statement of Last Financial Year 
  • Foreign Inward Remittance Certificate (FIRC).
  • Registered Valuer approved Valuation Certificate of the company.


What are the requirements of FDI in a private limited company?

FDI in private limited company is allowed only for non-resident entities subjected to the FDI Policy and its sectorial caps.

It falls under two routes:

  1. Automatic route: FDI is permitted up to 100% in most of the sectors other than those sectors which are capped or are restricted.
  2. Approval route: Prior approval from the Foreign Investment Promotion Board (FIPB) of the Government of India is required under this route. The citizens or the entities of Bangladesh or Pakistan can invest in India, only under the approval route.

What is the significance of Hague Convention (Convention abolishing the requirement of legalization for foreign public documents)?

This convention had concluded on October 5, 1961 and as per the objective of this convention “the States signatory to the present Convention, desiring to abolish the requirement of diplomatic or consular legalization for foreign public documents, have resolved to conclude a Convention to this effect and have agreed upon terms of this convention”.


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