What corporate legal services does Corporate Legit provide?

Corporate Legit offers India Entry Services, International Taxation, Direct & Indirect Taxation, Secretarial & Corporate Legal Compliances, Foreign Direct Investment, Intellectual Property Rights, Licensing and Registration, company registration services, Merger and Amalgamation (M&A), Litigation, Virtual CFO Services, International Advisory, Audit Services, and Registration of NGOs.

What India Entry Services do you offer?

India Entry Services helps foreign companies establish operations in India. The service assists with business structuring, necessary approvals, and compliance requirements for foreign businesses seeking to enter the Indian market.

What does your Corporate Secretarial practice cover?

Our Corporate Secretarial practice handles statutory compliance requirements for companies operating in India, including corporate legal documentation, board meeting management, and regulatory filings.

What are your Corporate Restructuring services?

Corporate Legit’s restructuring services include mergers and acquisitions, demergers, and corporate restructuring activities in accordance with regulatory requirements.

What Intellectual Property services do you provide?

We provide trademark search and registration services in IP databases, along with other intellectual property protection services, to safeguard clients’ IP rights in India.

How does Corporate Legit handle taxation matters?

Our taxation practice provides advice under Direct & Indirect Taxation, including income tax planning, GST compliance, double taxation avoidance advisory, and international taxation matters, to ensure clients remain compliant with Indian tax laws

What Registration & Licensing Services do you offer?

Corporate Legit provides registration and licensing services to help businesses obtain the necessary operational permits and registrations to conduct business legally in India.

What are your Regulatory Compliance & Audit Services?

We provide Corporate Compliance services to help businesses meet their statutory obligations and remain compliant with Indian regulatory requirements, along with supporting them through audit services in India whenever needed.

Do you provide Virtual CFO Services?

Yes, Corporate Legit offers Virtual CFO services for businesses requiring financial management expertise without a full-time Chief Financial Officer.

What makes Corporate Legit’s team qualified?

The senior members of the Firm possess professional qualifications in law, accountancy, company secretarial practices and management with international class experience from working with world-class advisory firms, including Big-4 accounting firms and international law firms.

Do you assist with NGO registration?

Yes, Corporate Legit provides Registration of NGOs (Non-Government Organisation) services to help establish non-profit entities in India.

How can businesses contact Corporate Legit?

Businesses can contact Corporate Legit at +91 9990607535, email at office@corporatelegit.in, or visit the office at A-77, Second Floor, Sector-4, Noida 201301, New Delhi NCR, India.

February 26, 2026
corporatelegit corporatelegit
FDI, Foreign Company Setup in India
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Expanding into India has become a deliberate strategic decision for many global businesses, not simply an optional step. The country’s expanding economy, evolving investment policies, and established regulatory environment have made Company setup in India a far more organised and predictable process than it once was.
Even so, the way a business chooses to enter the Indian market matters greatly. Each structure carries its own legal responsibilities, tax treatment, and level of operational control. Understanding these differences is essential before making a commitment. This guide outlines the main entry routes, explains the registration process, and highlights the practical factors businesses should consider when planning a Company setup in India.

Why Consider Company Setup in India?

India offers several advantages for foreign investors:

100% FDI allowed in many sectors under the automatic route
No minimum capital requirement for most company structures
Access to a large consumer base
Strong legal framework under the Companies Act, 2013
Growing infrastructure and digital compliance systems

That said, regulatory clarity and compliance discipline are essential from day one when planning to start a company in India.

Entry Options for Foreign Investors

Foreign companies can establish a presence in India through multiple structures. The choice depends on business objectives, sector regulations, and the desired level of control.

1. Wholly Owned Subsidiary (WOS)

A wholly owned subsidiary is the most preferred structure for long-term Company setup in India.
Key Features:

100% foreign ownership permitted in most sectors
Separate legal entity under the Companies Act, 2013
Minimum two directors (one must be an Indian resident)
Limited liability protection

Advantages:

Full operational control
Easier fundraising and investor participation
Clear compliance framework

Considerations:

Mandatory annual filings with the ROC
FEMA and FDI reporting obligations

This structure is ideal for foreign companies seeking full autonomy in India.

2. Joint Venture (JV)

When sectoral restrictions limit foreign ownership, a Joint Venture with an Indian partner is a practical option.
Highlights:

Shared ownership and risk
Suitable for regulated industries
Flexible structure (Private Limited or LLP)

Benefits:

Local market expertise
Shared financial burden
Easier regulatory navigation

Challenges:

Partner conflicts
Shared control over decisions

For businesses entering restricted sectors, this route simplifies Company setup in India while balancing compliance and control.

3. Liaison Office

A liaison office is suitable for businesses that do not intend to carry out commercial activities.
Permitted Activities:

Market research
Brand promotion
Acting as a communication channel

Important Points:

Cannot generate revenue in India
Requires RBI approval
Validity is usually granted for three years

This model works best for companies testing the Indian market before committing to a full Company setup in India.

4. Branch Office

A branch office allows foreign entities to conduct limited commercial activities.
Allowed Activities:

Export/import (wholesale)
Consultancy services
IT services

Restrictions:

No manufacturing
Higher tax rate than subsidiaries

Branch offices operate as extensions of the parent company and require RBI approval under FEMA regulations.

5. Project Office

A project office is suitable for foreign entities executing a specific contract in India.
Key Characteristics:

Temporary structure
Linked to project duration
Must cease operations after project completion

This option is common in infrastructure, construction, and turnkey projects.

Comparison Table: Entry Options for Company Setup in India

Structure	Legal Status	Revenue Allowed	RBI Approval	Best For	Duration
Wholly Owned Subsidiary	Separate Legal Entity	Yes	No (FDI Compliance)	Long-term expansion	Permanent
Joint venture	Separate Legal Entity	Yes	Depends on Sector	Restricted Sectors	Permanent
Liasion Office	Extension of Parent	No	Yes	Market Research	3 years (renewable)
Branch Office	Extension of Parent	Yes (Limited)	Yes	Testing market	2-3 years
Project Office	Extension of Parent	Yes (Project-specific)	Yes	Specific contracts	Project duration

Basic Registration Requirements

Regardless of structure, certain registrations are mandatory during Company setup in India:

Registration with the Registrar of Companies (ROC)
Certificate of Incorporation (COI)
PAN and TAN registration
GST registration (if applicable)
RBI approval under FEMA (where required)
Import Export Code (if engaged in trade)
Shops and Establishment registration

Additional sector-specific licences may also apply.

Step-by-Step Incorporation Process (For a Subsidiary)

A Private Limited Company is the most common structure used for Company setup in India.
The process includes:

Obtain Digital Signature Certificate (DSC)
Apply for Director Identification Number (DIN)
Reserve the company name via the MCA portal
Draft Memorandum and Articles of Association
File incorporation forms (SPICe+)
Receive Certificate of Incorporation
Open a corporate bank account
Apply for GST (if required)
Comply with FEMA reporting (for foreign investment)

The incorporation timeline typically ranges between 4–8 weeks, depending on documentation readiness.

Compliance Obligations After Incorporation

Once your incorporation is complete, ongoing compliance becomes critical.

Annual Corporate Compliance

Conduct board meetings
File financial statements (AOC-4)
File annual return (MGT-7)
Maintain statutory registers

Tax Compliance

Income tax filing
GST returns (monthly/quarterly)
TDS filings

FEMA Compliance

Reporting foreign investment
Filing FC-GPR forms
Adhering to sectoral FDI limits

Failure to comply may lead to penalties under the Companies Act and FEMA regulations.

Choosing the Right Structure

Before proceeding with Company setup in India, assess:

Nature of business activity
Sectoral FDI limits
Long-term vs short-term presence
Tax impact
Operational control requirements

A subsidiary offers permanence and control, while liaison or project offices suit limited objectives.
Joint ventures are ideal when regulatory barriers require a local partner.

Common Challenges in Company Setup in India

Understanding FDI restrictions
Navigating RBI approval processes
Managing documentation requirements
Handling post-incorporation compliance

Proper advisory support ensures smoother execution and reduces regulatory risks.

Conclusion

Company setup in India offers diverse entry routes tailored to different business goals. Whether establishing a wholly owned subsidiary for long-term expansion or opening a liaison office to explore opportunities, selecting the right structure is essential. Regulatory approvals, FEMA compliance, tax registrations, and corporate filings must be carefully managed from the outset. With India’s evolving FDI policies and digital incorporation systems, the process has become more transparent but remains compliance-driven. Strategic planning, sector analysis, and professional guidance can make starting a company in India structured, efficient, and aligned with your global growth strategy.

How CorporateLegit Can Help with Company Setup in India

Company setup in India involves multiple regulatory approvals, documentation requirements, and ongoing compliance obligations. CorporateLegit provides end-to-end support to foreign investors at every stage of the process. Our services include entry structure advisory, incorporation support, RBI and FEMA compliance assistance, tax registrations (PAN, TAN, GST), and ongoing ROC filings. We help you choose the right structure, complete registrations efficiently, and remain compliant after incorporation. With structured guidance and practical expertise, CorporateLegit makes company setup in India streamlined, compliant, and aligned with your business goals.

Frequently Asked Questions

What is the best structure for Company setup in India for foreign investors?
The most suitable structure depends on your business objectives and sector regulations. A Wholly Owned Subsidiary is ideal for long-term expansion with full foreign ownership and operational control. A Joint Venture works well in sectors where foreign investment is restricted. Liaison, Branch, or Project Offices are better suited for temporary or limited activities. For most foreign businesses planning permanent operations, a Private Limited Company is the preferred model for Company setup in India.

How long does Company setup in India take?
The timeline varies depending on the structure chosen. Incorporating a Private Limited Company typically takes 4–8 weeks, provided all documents are in order. Liaison and Branch Offices may take 6–8 weeks due to RBI approval requirements. Project Offices are usually established within 4 weeks. Proper documentation and compliance readiness significantly reduce delays in Company setup in India.

Can a foreign company own 100% of a business in India?
Yes, 100% foreign ownership is permitted in many sectors under the automatic FDI route. This means prior government approval is not required in those sectors. However, certain industries operate under the approval route or have ownership caps. Reviewing FDI policies before proceeding with Company setup in India is essential to ensure compliance with FEMA regulations.

What are the key compliance requirements after Company setup in India?
After incorporation, businesses must meet ongoing compliance obligations, including annual ROC filings (AOC-4 and MGT-7), income tax returns, GST returns (if applicable), and FEMA reporting for foreign investments. Companies must also conduct board meetings and maintain statutory registers. Non-compliance may lead to financial penalties and regulatory scrutiny.

What documents are required to start a company in India?
The basic documents required for Company setup in India include passport copies of foreign directors, proof of address, Digital Signature Certificates (DSC), Director Identification Numbers (DIN), Memorandum and Articles of Association, and registered office proof. Additional approvals, such as RBI permission or GST registration, may be required depending on the chosen structure and business activity.