If you’re a US founder or foreign national planning to expand your business and register a company in India, this guide is for you. Here you’ll learn how to set up a company in India from USA, understand the law, FDI rules and practical steps, and avoid costly mistakes that many foreign companies make with compliance.

You might be staying in USA today, but have some brilliant plans for business in India tomorrow. This article will help you learn the step-by-step process to register your own company, get your certificate of incorporation, and stay fully aligned with Indian laws and tax rules.

Why should you register a company in India from the USA?

India is one of the fastest-growing markets in the world, so it’s often best to register a local Indian company instead of operating only from overseas. For a US founder, having a company in India gives you a direct presence, better control over operations in India, easier hiring, and smoother investment in India compared to just selling cross-border.

When you set up a company in India from USA, you’re not just opening a bank account – you are creating a full-fledged business entity governed by Indian company law and the companies act 2013. This allows you to sign local contracts, raise local funds, bid for tenders, and build long-term business in India in a compliant way.

For many US founders, incorporating an Indian company also unlocks foreign direct inflows and structured foreign direct investment from the parent company or other investors. Done correctly, the structure makes taxation, profit repatriation and future exits far more efficient.

What types of company in India can a US founder choose?

When you register a company in India, you can choose from several forms of business entity. For most foreign promoters, a private limited entity is preferred, but there are also options to register as a partnership, form an LLP or even set up a branch or liaison office if you are incorporated outside India and only want limited operations in India.

A typical choice is between a private limited company or limited and a limited liability partnership. A limited company or limited liability structure offers strong separation between the founders’ personal assets and business risks through limited liability protection. A company or limited liability partnership may both work depending on your scale, fundraising plans and sector, but most growth-oriented founders treat private limited companies as the default.

For US founders who want external investors, ESOPs and easier exit options, a private limited structure is usually best to register. People can register small consulting firms or family ventures as an LLP, but for a scalable, investor-friendly company in India, a private limited is normally the first choice.

Is a private limited company the best structure for foreign companies?

Under the companies act, foreign companies are fully permitted to register a company as a private limited entity, subject to sectoral FDI rules. In fact, companies act 2013 allows foreign promoters to hold up to 100% equity in many sectors, and the act 2013 allows foreign residents to act as non-resident directors alongside an Indian resident director.

From a branding and trust perspective, private limited companies are widely recognised as serious, structured and compliant. Banks, enterprise clients and vendors in India are usually more comfortable dealing with a private limited than with an informal partnership. If you are planning foreign company registration in India, going via the private limited route also simplifies future mergers, acquisitions and exits.

Because the framework allows foreign shareholders and directors subject to sector-specific caps, a US-based parent company can hold shares in the proposed company registered in India. This ensures continuity, control, and alignment between your US entity and your new company in India.

What are the legal requirements under Companies Act 2013?

When you register a company in India from the USA, you must follow the companies act 2013, related rules and other Indian laws such as FEMA, tax acts, and sectoral regulations. Every company formed in India has to comply with onboarding formalities, disclosures and continuous compliance filings with the registrar of companies.

The law requires at least one Indian director to sit on the board. In fact, there must be least one Indian, and often at least one least one Indian director who is a least one Indian resident. In other words, there has to be an Indian resident director who is a resident of India for more than 182 days in a financial year. This ensures that company in India always has a responsible person within India.

If you are a foreign national or a national in USA, your passport and other documents may need to be notarised and apostilled or attested at the Indian embassy or consulate. A company must also maintain a registered office address in India and display its name and certificate of incorporation details as per Indian company law.

How does FDI, central government or RBI approval work?

For most sectors, foreign direct investment is permitted under the automatic route process, meaning you do not need prior approval from the central government or RBI for the investment in India. However, in case the sectors you operate in are sensitive (defence, telecom, media, etc.), there may be a foreign direct limit or specific conditions.

In such situations, the relevant ministry of central government and the reserve bank of India may need to clear the structure or the route process. The central government and government or RBI to start certain ventures may impose additional eligibility criteria, net worth conditions or security reviews before your company in India can legally receive FDI.

Your advisors will help you identify the correct route process, whether purely automatic or with prior approval, and ensure filings with RBI and the ministry of corporate affairs are correctly sequenced so that the application for your company is never rejected for technical reasons.

What is the step-by-step company registration process from the USA?

The Indian registration process for a company from the USA has become much smoother thanks to the online company registration process that has been introduced by the Indian government. The entire process has been introduced through integrated forms like SPICe+, which are handled by the ministry of corporate affairs (often called MCA).

First, you decide the structure – typically a private limited – and finalise the name of the company. Then you file a name application for your company using the MCA portal. Once the name is approved, you prepare the memorandum of association and the AOA of your proposed company. These are often collectively known as moa and aoa, and they define the share capital, business objects and internal rules of your business entity.

During incorporation of a company, the consolidated form captures director details, shareholding, PAN, TAN and registered office information. MCA personnel at the central registration centre examine your filing, and the central registration centre check ensures that the documentation, attachments and documents and kyc meet all formal standards. Once approved, the company incorporated receives a CIN number and its official certificate of incorporation.

What documents and KYC are needed for registration?

To successfully register a company, you must provide all needed documents for registration up-front. These include identity and address proofs for all directors and shareholders, constitutional documents such as MOA and AOA of your proposed company, and complete documents for registration of the registered office and capital structure.

From the overseas side, each foreign national promoter (or the US parent company if the shareholder is incorporated outside India) must supply apostilled and notarised documents and kyc. These are often certified at the Indian embassy where the national in USA resides. Local Indian directors and shareholders submit PAN, Aadhaar and accepted address proofs.

You also need proof of registered office such as a lease deed, utility bill and NOC from the owner. These form part of the application for your company to the registrar of companies. When all information, incorporation and your company paperwork, and attachments are in order, MCA issues the certificate of incorporation, confirming that your Indian company has come into legal existence.

What about registered office, directors and ongoing compliance?

Once your company in India is set up, there are ongoing compliance obligations. The registered office must remain active and any change must be filed with the registrar of companies. Board meetings, shareholder meetings, annual financial statements and regular filings are all mandatory, and every company incorporated in India must meet these timelines.

The director of the company, especially the Indian resident director, is responsible for ensuring that all compliance is being tracked – from statutory registers and tax filings to labour law registrations and sector-specific approvals. This includes ensuring that the operations in India align with FEMA, tax and sector rules, especially when funds move between India and the US parent company.

A good advisory partner will set up internal calendars so your business and register events (AGMs, board meetings, ROC filings, etc.) never slip. This discipline keeps your company in India in “Good Standing”, which is crucial when you raise capital, sell shares or participate in government tenders.

How do RBI, Indian laws and FDI tie into day-to-day operations?

Once the company in India is formed, FEMA and RBI rules continue to apply to capital flows, loans, guarantees and royalty payments. In some cases, sector rules may require prior approval from central government or RBI for downstream investments or restructuring, especially where foreign direct limit thresholds are crossed and case the sectors are sensitive.

Bankers will check that your share capital has been received under the correct route process, whether under the automatic route process or an approval route. For some kinds of investment in India, the reserve bank of India must be notified through filings like FC-GPR, and government or RBI to start certain highly regulated businesses may require additional licences before you begin revenue-generating operations in India.

All of this may sound complex, but the key is to implement a robust compliance checklist from Day 1 so that the strong foundation you created during incorporation is never compromised later.

Can I register from the USA if I’m not in India right now?

Yes. You might be staying in USA physically, but technology and the Indian MCA portal make it easy to register a company in India from the USA without frequent travel. Digital signatures, online filings and remote notarisation help a national in USA complete most steps from abroad.

If you are a foreign national wanting to register your own company, digital KYC, video verification and apostilled documents mean that people can register a company in India even when they are not within India. You simply need at least one Indian resident director, a real registered office, and complete documents and kyc.

This is why many US founders now set up a local company in India even before they hire the first employee or sign their first client there. The legal shell is ready, bank accounts are opened, and you can begin business in India the moment commercial opportunities appear.

How TeamTaxation helps with foreign company registration & compliance

For a US-based founder or business entity, navigating company registration in India plus tax, FDI and ROC filings can be overwhelming. That’s where expert advisors like Team Taxation step in with complete expert guidance. We handle the structuring, application for your company, drafting of memorandum of association, AOA, and all practical aspects of incorporation and your company set-up.

We guide you on whether a private limited, limited liability partnership or branch is more suitable, and how to align the Indian structure with your US parent company. From FDI rules to central government or RBI processes, from drafting MOA and AOA to helping you appoint an Indian resident director, we make sure that the company registration and post-incorporation compliance are handled end-to-end.

If you want to register a company quickly, safely and correctly, TeamTaxation.com ensures that your company incorporated in India is bank-ready, investor-ready and fully aligned with Indian company law — so you can focus on building your product, team and revenue.

Selecting the right business structure is a fundamental step when seeking to register a company in India. While private limited companies are a favored option due to their limited liability and ease of management, other structures like Limited Liability Partnerships (LLPs) and wholly owned subsidiaries should also be considered. Private limited companies are suitable for small to medium-sized businesses, while LLPs offer flexibility in terms of compliance and taxation. For foreign companies, establishing a wholly-owned subsidiary grants greater control over operations in India. Carefully evaluating the advantages and disadvantages of each structure based on your business objectives is crucial for making an informed decision regarding your company in India.

Documentation Required for Registration

The company registration process in India demands meticulous preparation of necessary documentation. For foreign companies aiming to register a company, this typically includes the certificate of incorporation of the parent company, the AOA of your proposed company, passport copies of the directors, and a registered office address in India. All documents must be apostilled or notarized as per international standards. Additionally, you will need to obtain a Director Identification Number (DIN) for each director and digital signature certificates (DSCs) for online filings with the MCA. Accurate and complete documentation is vital to expedite the registration process and ensure compliance with Indian Company Law when you register your own company.

FAQs – Common questions from US founders

1. Can a US citizen own 100% of a company in India?
Yes, in many sectors a US foreign national can hold up to 100% shares in a private limited or limited liability partnership, subject to foreign direct limit and specific FDI caps where case the sectors are sensitive.

2. Do I have to travel to India to open a company?
Physical presence is not always mandatory. You might be staying in USA, but with apostilled documents, video KYC and local partners, you can still complete the majority of steps and register a company as a company from the USA.

3. How long does the registration process take?
Thanks to the integrated MCA registration process and the way the process has been introduced, timelines have reduced significantly. Once all documents and kyc are ready, MCA’s personnel at the central registration centre typically process the steps to register your company in India quite quickly, although timings may vary based on workload and queries.

4. Can we later convert or reorganise the structure?
Yes, you can restructure shareholding, bring in new investors or even convert between certain forms (for example, from an llp to a private limited) subject to Indian laws and approvals from central government or RBI to start certain reorganised structures.