NRI Business Setup Assistance in India
Non-Resident Indians (NRIs) looking to establish a business in India face various legal, financial, and compliance challenges. This guide provides detailed insights into the process, benefits, legal structures, taxation, and regulatory requirements for NRIs starting a business in India.
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Business Structures Available for NRIs
NRIs can establish businesses in India under the following structures:
- Private Limited Company - Most preferred option due to limited liability and ease of raising funds.
- Limited Liability Partnership (LLP) - Offers limited liability and is governed by the LLP Act, 2008.
- Sole Proprietorship - Simple to start but does not provide limited liability protection.
- Partnership Firm - Requires a minimum of two partners and is governed by the Indian Partnership Act, 1932.
- Branch Office, Liaison Office, or Project Office - Suitable for foreign companies expanding into India.
Eligibility and Investment Routes
NRIs can invest in India through:
- Automatic Route – No prior approval required from the Reserve Bank of India (RBI).
- Government Route – Requires prior approval from the Foreign Investment Promotion Board (FIPB) or relevant authorities.
Process of Company Registration in India
The step-by-step process for company registration in India includes:
- Choosing the Business Structure – Decide between Private Limited Company, LLP, or other entities.
- Obtaining Digital Signature Certificate (DSC) & Director Identification Number (DIN) – Required for company incorporation.
- Name Approval through RUN (Reserve Unique Name) Service – Apply for name approval on the MCA portal.
- Drafting Memorandum & Articles of Association (MoA & AoA) – Key documents defining business objectives and rules.
- Filing for Incorporation using SPICe+ Form – Submit incorporation documents on the MCA portal.
- PAN & TAN Application – Apply for a Permanent Account Number (PAN) and Tax Deduction & Collection Account Number (TAN).
- Opening a Bank Account – Open a business bank account under the company’s name.
- Post-Incorporation Compliance – Register for GST, EPF, ESI, and other applicable licenses.
Key Registrations & Compliance
Once the business is set up, NRIs must comply with various legal and tax requirements:
- Company Incorporation (MCA Portal - SPICe+ Form)
- GST Registration (For businesses exceeding turnover threshold)
- Income Tax Compliance (Filing ITR, TDS payments, etc.)
- Foreign Exchange Management Act (FEMA) Compliance
- Reserve Bank of India (RBI) Reporting (For foreign investments)
- Professional Tax & Labour Law Compliance (Depending on employee count)
Taxation and Benefits for NRI Entrepreneurs
- Corporate Tax Rate: 22% for domestic companies under Section 115BAA (with conditions)
- Income Tax: Based on business structure
- GST: Applicable on goods and services supplied
- Deductions & Exemptions: Available under various sections (e.g., Startup India benefits, MSME registration advantages)
HR & Payroll Processing Services
NRIs setting up businesses in India may require HR and payroll processing services to manage employee salaries, benefits, and statutory compliance, including EPF, ESI, and professional tax registrations.
Banking Solutions
Setting up business bank accounts, NRO/NRE accounts, foreign remittances, and RBI compliance is crucial for smooth financial operations.
Corporate Secretarial Services
Includes company incorporation, board meeting compliance, statutory filings, and ROC compliance to ensure smooth corporate governance.
Accounting & Taxation Services
Comprehensive accounting, GST filings, income tax return preparation, bookkeeping, and financial reporting tailored for NRIs.
Advantages of Setting Up a Business in India as an NRI
- Access to a Growing Market: India is one of the fastest-growing economies.
- Government Initiatives & Incentives: Startup India, Make in India, and MSME benefits.
- Ease of Doing Business: Reforms in company incorporation, taxation, and foreign investment regulations.
- Skilled Workforce & Cost Efficiency: Availability of cost-effective labor and technology.
Challenges & How to Overcome Them
- Regulatory Compliance: Consulting with experts ensures smooth compliance.
- Banking & Fund Transfer Issues: NRO/NRE/FCNR accounts help manage foreign funds.
- Understanding Taxation & Legal Framework: Hiring professionals simplifies tax filing and legal procedures.
NRI Business Setup Assistance Packages - Contact Us !!!
NRI Business Setup
Family Auditor
for NRIs and Foreign Nationals
₹29999 .00 *
* All Exclusive
- MOA & AOA Drafting
- Incorporation Application
- Name Reservation Approval
- DIN for Foreign Directors
- PAN & TAN
- * State Stamp Duty Extra + DSC Cost
- PF & ESI Registration
-
Incorporation Certificate & CIN
- Share Certificate
- Appoint First Auditor of the Company
- Free Bank Account Opening
- Free GST Monthly Return 1 Month
- Free 3 Months "Accounts Robo" ERP Software
Starting a Business in India as an NRI requires proper planning, Legal Registration, and Compliance with Tax and Regulatory Laws. Seeking Professional Assistance ensures a smooth Business Setup Process. TAX ROBO provides end-to-end support for NRIs looking to Establish their Business in India.
Documents Required for NRI Business Registration
NRIs need to provide the following documents to register a business in India:
- Passport & Visa (Notarized/Attested)
- Overseas Address Proof (Utility Bills, Bank Statement, etc.)
- Indian Address Proof (If applicable)
- PAN Card (Mandatory for tax compliance)
- Business Plan (Required for funding and approvals)
- Memorandum & Articles of Association (MoA & AoA) (For company incorporation)
- Digital Signature Certificate (DSC) and Director Identification Number (DIN) (For directors)
Frequently Asked Questions (FAQs)
Yes, NRIs can start a wholly owned business under the Private Limited Company or LLP structure.
No, but an NRI must have a valid Business Visa or OCI Card for long-term engagement.
Profits can be repatriated after fulfilling FEMA and RBI compliance requirements.
Yes, NRIs cannot invest in sectors like agriculture, real estate, and lottery businesses.
Yes, registered startups under Startup India enjoy tax exemptions for the first three years under Section 80-IAC.
