INCORPORATION OF BUSINESS OF
FOREIGN RESIDENTS /
INVESTORS IN INDIA
Your Strategic Gateway to the Indian Market.
At GLAN, we bridge the gap between global ambition and Indian reality. We
understand that navigating a new regulatory environment-from FDI norms to
sector-specific compliances-can be daunting. Our firm provides a sophisticated,
end-to-end ecosystem designed to handle the complexities of business
incorporation, tax structuring, and multi-layered regulatory approvals.
100% FDI Support
FEMA & RBI Compliance
Tax & Legal Structuring
End-to-End Incorporation
India is no longer just an "emerging" market; it is a global economic pillar currently undergoing a once-in-a-generation transformation Driven by a massive young workforce, a revolution in digital infrastructure, and investor-friendly policy reforms, India offers a scale of opportunity that is unmatched globally.
$3.7Tn
GDP (2026E)
6.7%
Growth Rate (2026E)
500Gw
Non-fossil Target
Top 3
Global Economy by 2030
PRICING • INCORPORATE IN INDIA
Four tiers. One filing partner, end to end.
From a same-week Pvt Ltd incorporation to a full first-year compliance calendar — pick the tier that matches where you are. Every price is all-inclusive of government charges. Additional directors are a flat $50 each across all plans.
AT A GLANCE
# 1
FOUNDATION
$149
All-inclusive of government charges
DELIVERS
Company Incorporation
- PAN & TAN allotment
- Certificate of Incorporation (COI)
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- 2 Directors DIN + DSC
# 2
GROWTH
$249
All-inclusive of government charges
EVERYTHING IN FOUNDATION, PLUS
- Business bank account assistance
- Basic FEMA compliance advisory
- GST registration
- Letter of Undertaking (LUT)
- Import-Export Code (IEC)
★ MOST CHOSEN BY FOUNDERS
# 3
STRATEGIC
$349
All-inclusive of government charges
EVERYTHING IN GROWTH, PLUS
- TDS & Form 16F guidance
- Virtual consultation (1 session)
- Accounting setup guidance
- First Board Resolution drafts
- Permanent Establishment review
# 4
ELITE
$549
All-inclusive of government charges
EVERYTHING IN STRATEGIC, PLUS
- Accounting support (up to ₹5,000 bank)
- Annual compliance calendar
- Priority Support
- 1-year compliance retainer
- Quarterly review check-ins
The India Opportunity: High-Growth Hubs & Trendy Sectors
India is no longer just a destination for back-office outsourcing. In 2026, it has emerged as a global hub for high-tech manufacturing, green
energy, and deep-tech innovation. We help you identify the right “Socio-Economic Zone” and sector to maximize your ROI.
The Green Energy Revolution
The “Why” India is targeting
500GW of non-fossil fuel capacity.
Gujarat’s GIFT City offers a unique
“offshore” financial climate within
India, providing tax holidays and
relaxed FEMA regulations for
foreign green-tech investors.
Pharmaceuticals & Life Sciences
The Hub Hyderabad (Genome
Valley) & Pune.
The “Why” Known as the
“Pharmacy of the World,” India now allows 100% FDI in many pharma categories. Hyderabad’s dedicate ecosystems for life sciences provide a plug-and-playenvironment for foreign biotech firms.
E-Commerce & Smart Logistics Infrastructure
The Sector B2B E-Commerce Marketplace Platforms, Automated Fulfillment Centers, and TechEnabled Third-Party Logistics (3PL).
The Hub Mumbai-MMR (Bhiwandi),.Bengaluru, and Delhi-NCR(Gurugram).
The “Why” Under India’s strict
investment guidelines, 100% FDI is permitted via the automatic route for marketplace-based ecommerce and logistics infrastructure. The Mumbai-MMR region acts as the primary maritime container gateway, while Gurugram and Bengaluru drive the Al routing software and dark-store
automation making high-throughput distribution highly
scalable.
Renewable & Non-Conventional Energy
The Sector Solar PV Utility Projects,
Wind Farms, Grid-Scale Battery
Storage Infrastructure, and Wasteto-Energy.
The Hub Gujarat (Khavda &
Jamnagar), Rajasthan, and Tamil
Nadu.
The “Why” The “Why” India allows 100% foreign equity directly through the automatic route for power generation, transmission, and distribution from renewable sources. Gujarat’s massive hybrid
parks and Rajasthan’s vast solar
corridors offer high-yield
geographic advantages, drawing
massive global green-bonds and
institutional asset infrastructure.
Why Choose the Right Hub: Each state offers different industrial policies, electricity subsidies, and labor laws. At GLAN, we conduct a Location Feasibility Analysis to ensure your entity is incorporated in a state that aligns with your specific industry incentives.
THE TWO ENTRY ROUTES
Two Clear Paths. One Smart Entry.
India has become one of the most liberalized investment destinations globally. At GLAN, we streamline your entry by matching your business goals with the correct
regulatory path.
The Automatic Route (Zero Prior Approval)
For the majority of sectors, investors can infuse capital directly. You only need to notify the Reserve Bank of India (RBI) after the funds are received and shares are issued.
- 100% Automatic Sector
IT/BPM, Manufacturing, E-commerce, Telecom, and Insurance (Newly liberalized to 100% in 2026).
- The GLAN Advantage
We manage the entire post-remittance reporting (Form FC-GPR) via the FIRMS portal to ensure you stay compliant from day one.
The Government Route (Strategic Approval)
Certain sensitive sectors require prior clearance from the relevant Ministry via the Foreign Investment Facilitation Portal (FIFP).
- Key Sectors
IT/BPM, Manufacturing, E-commerce, Telecom, and Insurance (Newly liberalized to 100% in 2026).
- The GLAN Advantage
We manage the entire post-remittance reporting (Form FC-GPR) via the FIRMS portal to ensure you stay compliant from day one.
One cap, one route,
one rulebook
India is now of the most liberalised FDI destinations globally-most sectors aren open to 100% foreign ownership
under the Automatic Route. A short list still carriers caps or needs government approval.
“Sectors Permitting 100% FDI Under the Automatic Route”
“No prior approval. RBI reporting only. Sector-specific conditions where needed.”
| Sector | Cap | Key Conditions |
|---|---|---|
| Agriculture & Allied (horticulture, plantation) | 100% | Crop plantation except excluded items |
| Manufacturing | 100% | Subject to industrial licensing |
| Telecommunications (services) | 100% | Security clearance from DoT |
| IT & BPM Services | 100% | No conditions |
| E-commerce (marketplace model) | 100% | Inventory model not allowed |
| Construction (townships, housing) | 100% | Norms & capitalisation requirement |
| Automobile & Auto Components | 100% | No conditions |
| White-label ATM. Cash & Carry. Precious Metal | 100% | Subject to sector norms |
| Sector | Cap | Route | Key Condition |
|---|---|---|---|
| Insurance | 100% | Automatic | Parliament Bill, Dec 17 2025 |
| Defence | 74% | Automatic | 100% with govt approval |
| Pharma (brownfield) | 74% | Automatic | Greenfield is 100% automatic |
| Private Sector Banking | 74% | Auto ≤ 49% Govt > 49% | Banking Reg. Act & RBI |
| Public Sector Banking | 20% | Government | Banking Companies Act |
| Multi-Brand Retail | 51% | Government | USD 100M min state consent |
| Domestic Airlines (scheduled) | 49% | Automatic | 100% for NRIs (auto route) |
| Private Security Agencies | 74% | Auto ≤ 49% Govt> 49% | Subject to PSARA, 2005 |
Need Clarity on Your Sector?
Our experts decode the regulations so you can focus on growth. We ensure your investment is structured for 100% compliance.
Prohibited Sectors: Where FDI Is Not Permitted.
Regardless of the route or structure, FDI is completely prohibited in the following sectors. There are no exceptions, no workarounds, and no approval mechanisms available.
Lottery business
including government lotteries, private lotteries, and online lotteries
Gambling and betting
including casinos (both physical and online)
Chit funds
as defined under the Chit Funds Act, 1982
Nidhi companies
mutual benefit societies under Section 406 of Companies Act
Trading in Transferable Development Rights (TDRS)
Real estate business
excluding construction development of townships,residential/commercial premises, roads, bridges, and REITS
Manufacturing of cigars, cheroots, cigarillos, and cigarettes
of tobacco or tobacco substitutes
Activities/sectors not open to private sector investment
atomic energy generation and certain railway operations
Our FEMA Compliance Suite
Investing is just the first step; staying compliant is where the complexity lies. Our firm handles the technical “heavy
lifting”:
KYC & Inward Remittance
We coordinate with your Authorised Dealer (AD) Bank to ensure the Foreign Inward Remittance Certificate (FIRC) is issued without delays.
Valuation Certificates
As per FEMA rules, shares must be issued at ir Value." We provide the necessary Chartered Accountant Valuation Certificates required for RBI filings.
Annual Compliancе
We manage your Annual Return on Foreign Liabilities and Assets (FLA), a mandatory filing for every Indian company with foreign investment
Trade Regulations
We implement the new Unified Export/Import Declaration (EDF) framework effective from October 2026, simplifying your cross-border trade filings.
Step-by-Step Foreign Company Registration Process in India
The process to register a foreign company in India involves several legal and procedural steps:
01. Digital Signature Certificate (DSC)
All Directors And Authorized Signatories Must Obtain DSCs To
Sign Documents Electronically.
02. Director Identification Number (DIN)
Each Director Is Required To Obtain A DIN For Legal Recognition.
03. Name Approval
Proposed Company Names Are Submitted To The Ministry Of Corporate Affairs (MCA) For Approval. Names Must Comply With Indian Naming Guidelines.
04. Filing Incorporation Documents
Includes Memorandum Of Association (MOA), Articles Of
Association (AOA), Board Resolutions, And Parent Company
Incorporation Certificates.
05. Reserve Bank of India (RBI) Compliance
Approval For Foreign Direct Investment (FDI) And Adherence To
FEMA Regulations.
06. Certificate of Incorporatio
The RoC Issues This Certificate, Officially Recognizing The
Foreign Business Entity.
Required Documents for Business Registration for Foreigners
Foreign businesses must provide specific documents for business registration for foreigners in India
Identity and address proof of directors
Certificate of Incorporation of the parent company
Registered office address proof in India
FDI /FEMA approvals where applicable
FDI /FEMA approvals where applicable
GLAN carefully reviews these documents and assists in preparation,ensuring a seamless foreign business registration process for foreign investors.
Compliance and Post-Registration Requirements
After registering as a foreign entity, compliance is crucial for legal operations in India. GLAN offers guidance in
Annual filings with the Registrar of Companies (ROC)
GST registration and periodic tax compliance
Labour law and employment complianc
RBI reporting obligations for foreign investments
Intellectual property registration and corporate governance
MSME, EXPORT-INPORT, STARTUP INDIA
Compliance and Post-Registration Requirements
After registering as a foreign entity, compliance is crucial for legal operations in India. GLAN offers guidance in
Limited Liability Entities (Full-Scale Market Entry)
These are the most popular choices for foreign investors looking to manufacture, trade,
or provide services within India.
- 100% Automatic Sector
IT/BPM, Manufacturing, E-commerce, Telecom, and Insurance (Newly liberalized to 100% in 2026).
Best For Startups, Tech companies, and Manufacturing units.
Key Advantage 100% Foreign Direct Investment (FDI) is allowed in most sectors; easy to raise capital or exit.
- B. Limited Liability Partnership (LLP)
A hybrid between a partnership and a company. It offers the flexibility of a partnership with the limited liability of a company.
Best For Service-oriented firms and professional consultants.
Key Advantage Lower compliance burden and no Dividend Distribution Tax (DDT).
Representative Entities (The "Test-the-Waters" Approach)
If you aren’t ready for a full-scale subsidiary, these structures allow for a strategic presence under the FEMA framework.
| Feature | Private Limited | LLP | Branch Office |
|---|---|---|---|
| Legal Status | Separate Legal Entity | Separate Legal Entity | Extension of Foreign Co. |
| Liability | Limited to Capital | Limited to Contribution | Unlimited for Parent Co. |
| Tax Rate | 25%-30%* | 30% | 40% + Surcharge |
| FDI Route | Most Liberal (100%) | Restricted to Auto Route | RBI Approval Required |
| Compliances | High | Medium | Moderate |
- Strategic Advisory by GLAN
Choosing an entity isn't just a legal checkbox-it's a tax and exit strategy. We provide.
THE TWO ENTRY ROUTES
Build your Indian footprint on the right foundation.
Choosing the correct legal entity is not just a regulatory checkbox—it’s a critical tax, compliance, and profit repatriation strategy. India offers distinct pathways tailored to your investment scale and risk profile.
FULL-SCALE ENTRY
Private Limited Company (Subsidiary)
The gold standard for foreign corporations seeking full-scale manufacturing, trade, or service entry. It establishes a separate legal entity in India, allowing the foreign parent to hold up to 100% of the shares.
BEST FOR
Startups, Tech firms, and Manufacturing units
KEY ADVANTAGE
100% Foreign Direct Investment (FDI) under Automatic Route.
REGULATORY REQUIREMENT
Minimum of 2 shareholders and 2 directors (at least 1 director must be a resident of India).
FLEXIBLE ENTRY
Limited Liability Partnership (LLP)
A robust hybrid structure combining partnership flexibility with corporate limited liability. Designed to ease operational overhead while maintaining a reliable legal status.
BEST FOR
Service-oriented businesses Consultants
KEY ADVANTAGE
Lower compliance burden and no Dividend Distribution Tax (DDT).
FDI RESTRAINTS
FDI is allowed only in sectors permitting 100% FDI under the Automatic Route with no performance-linked conditions.
MARKET COMPARISON
The Entry Matrix
Compare India’s primary entry structures to choose the best configuration for taxation and liability.
| Feature | Private Limited | LLP | Branch Office |
|---|---|---|---|
| Legal Status | Separate Entity | Separate Entity | Foreign Co. Extension |
| Liability | Limited to Capital | Limited to Contribution | Unlimited for Parent |
| Base Tax | 22% (Concessional) | 30% | 35% |
| FDI Route | Automatic (100%) | Restricted Auto | RBI Approval Required |
| Compliance | High | Medium | Moderate |
STRATEGIC ADVISORY BY GLAN
- Repatriation Planning: Evaluating Pvt Ltd vs. LLP models based on a 5-year profit repatriation and withholding tax analysis.
- Director Mandates: Executive assistance in appointing verified Resident Directors to meet statutory Indian corporate requirements.
Pay tax once,
not twice
India’s Double Taxation Avoidance Agreements (DTAAS) with 94+ countries let foreign investors individuals and companies alike-claim lower withholding rates on Indian income and a foreign tax credit back home. The same rupee is never taxed in full by two governments.
WHY IT WORKS
01
Lower withholding at source
Indian payer deducts at treaty rate, not 20%.
02
Foreign Tax Credit home-side
Indian tax paid offsets the resident country’s bill.
03
Permanent Establishment clarity
Defines when a foreign business becomes taxable in India.
04
MAP dispute resolution
Mutual Agreement Procedure resolves cross-border disputes.
05
Equal access–individuals & firms
NRIs, salaried, freelancers and MNC parents all qualify.
06
Capital-gains carve-outs
E.g. Mauritius/Singapore protocols on shares.
WORKED EXAMPLE LIVE
A $IM dividend
from your Indian subsidiary
Withholding tax retained by India when the same dividend is paid to a parent company in eight different treaty jurisdictions.
Rates shown apply where the parent meets shareholding thresholds (e.g. 210% in US/UK, 225% in Singapore). Mauritius 5% applies for 210% direct holding. Source: PwC/India-Briefing 2025-26.
Sending profits home-four pipes, four rates.
A foreign company or NRI investor extracts value from India through four legal channels. Each routes through Section 195 withholding, but the DTAA rewrites the rate and the entity’s character changes which pipe is even available.
01
Dividend
After-tax profit distributed by an Indian subsidiary to its foreign shareholder. Taxable in shareholder’s hands since FY 2020–21.
DOMESTIC vs TREATY
India domestic (S195)
20%
US USA (>10% holding)
15%
GB UK / JP / DE / NL NL
10%
MU Mauritius (>10% direct)
5%
02
Interest
Coupon on ECBs, loans or rupee bonds. Deductible against Indian profits, so often the most tax-efficient extraction pipe.
DOMESTIC vs TREATY
India domestic (S195)
20%
US USA / GB UK (bank)
15%
JP JP / DE DE / SG SG / NL NL
10%
AE UAE (bank / financial)
5%
03
Royalty
Payments for use of IP – patents, trademarks, software, copyrights, industrial know-how licensed to the Indian entity.
DOMESTIC vs TREATY
India domestic (S195)
20%
SG SG / JP JP / DE DE / NL NL
15%
US USA / GB UK (copyright)
10%
MU Mauritius
15%
04
Fees for Technical Services
UAE & Saudi treaties have no FTS article – often zero WHT if no PE in India.
DOMESTIC vs TREATY
India domestic
20%
SG SG / JP JP / DE DE / NL NL
10%
US USA (included services)
10%
AE UAE (no PE)
0%*
Tax Intelligence & Profit Mobility
Establishing a business in India is about more than just growth-it’s about the efficient movement of capital. At
GLAN, we synchronize your Indian tax strategy with your global financial goals.
WORKED EXAMPLE - 2100 OF PROFIT
What Stays with you after Indian tax.
Effective rate=base tax + surcharge + 4%health & education cess. Shown for taxable income above lcr(LLP Surcharge 12%; company surcharge 10%).source:Income Tax Dept, pwc India tax summary, Ay 2026-27.
Don’t lose 20% of your profits to avoidable taxes. Speak to our International Tax Strategists today.