Starting a Business · India
Starting a Business - India
India permits 100% foreign ownership under the 'automatic route' (no prior government approval) in most sectors, has abolished any minimum paid-up capital, and runs a fully online incorporation process via the MCA SPICe+ form. However, friction remains for foreigners: at least one director must be Indian-resident, foreign documents must be notarised and apostilled, and a minority of sectors are restricted or require government approval. Overall it is feasible but bureaucratic, hence moderate.
FDI up to 100% is permitted under the automatic route (no prior government/RBI approval; only post-facto reporting to RBI within 30 days) in most sectors, including most manufacturing, IT, renewables and many services.
FDI is prohibited in lottery, gambling/betting, chit funds, Nidhi companies, real estate trading and tobacco manufacturing. Sectors such as defence (beyond 74%), multi-brand retail, print media and broadcasting require prior government approval via the Foreign Investment Facilitation Portal.
Since the Companies (Amendment) Act, 2015 there is no minimum paid-up capital requirement for a private limited company, so a company can be formed with nominal capital.
Under Section 149(3) of the Companies Act, 2013, every company must have at least one director who stayed in India for 182+ days in the financial year. A foreigner cannot incorporate alone without an Indian-resident director.
Online via MCA: obtain Class-3 Digital Signature Certificate; reserve name (SPICe+ Part A); file SPICe+ Part B with e-MoA/e-AoA and AGILE-PRO (auto-allots DIN, PAN, TAN, GST, EPFO/ESIC, bank account). Foreign directors' passports/proofs must be notarised and apostilled abroad.
Incorporation generally completes in about 7–15 working days once documents are ready; the main delays for foreigners come from arranging notarisation/apostille of overseas documents.
Machine-assisted translation · verified 5/23/2026 · orientation, not legal advice. English version →