Business · Business Setup

Setting Up a Business in India as an NRI or OCI

Choose the right structure, meet foreign investment rules and get registered — a company, an LLP or a sole proprietorship, run from abroad.

  • Private limited company or LLP
  • One Person Company options
  • FEMA and reporting
  • Tax and GST registration

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Start Your Business

Tell us the business, the investors and where it will operate.

In short

The key choices

NRIs and OCIs can set up companies and LLPs in India, subject to FEMA and sector rules. Investment on a repatriation basis is treated as foreign investment and must be reported; investment on a non-repatriation basis is treated as domestic. Every company needs at least one director who stays in India for at least 182 days in the financial year.

Common situations

Common Situations

Typical NRI business plans.

New start-up

A technology or services company in India.

Family business

Formalising or investing in a family enterprise.

Indian arm

A subsidiary of your foreign company.

Joint venture

Partnering with an Indian business.

Real estate business

Restrictions on real estate activity.

Investing money

Repatriation or non-repatriation basis.

Your options

Structures

Each has different compliance.

Private limited company

The usual choice for investment and growth.

LLP

Flexible partnership with limited liability.

One Person Company

NRIs have been allowed to form OPCs since 2021.

Subsidiary

For a foreign company’s Indian operations.

Agreements

Shareholders’, founders’ and services agreements.

Registrations

PAN, TAN, GST and other licences.

The law

Laws That Commonly Apply

Company law and foreign investment rules.

Company law

  • Companies Act, 2013 — incorporation, directors and compliance.
  • Section 149(3) — at least one director must stay in India for at least 182 days in the financial year.
  • Limited Liability Partnership Act, 2008.
  • Directors need a Director Identification Number and digital signature.

Foreign investment

  • FEMA and the Non-Debt Instruments Rules, 2019 — automatic and government routes.
  • Investment on a repatriation basis must be reported to the RBI through the bank.
  • Some sectors are prohibited or capped for foreign investment.
  • Tax registrations and GST under the applicable laws.

Step by step

How Setup Usually Works

Typical stages

  1. Choose the structure and investment route.
  2. Obtain digital signatures and director IDs.
  3. Reserve the name and file incorporation forms.
  4. Open a bank account and bring in capital.
  5. Make FEMA filings for foreign investment.
  6. Register for tax and GST.

Documents usually needed

  • Passports and address proof (apostilled or attested if foreign)
  • Photographs
  • Registered office proof
  • Business plan and shareholding
  • Bank details
  • Board resolutions for corporate shareholders

From abroad

Handling It While You Live Overseas

Attested documents

Foreign identity documents usually need apostille or attestation.

Resident director

Appoint a director who meets the residence requirement.

Online filings

Incorporation is done online.

Banking

Bring capital through proper banking channels.

Annual compliance

Board meetings, filings and audits each year.

Power of Attorney

For local formalities.

Avoid these

Common Mistakes

Common pitfalls

  • Choosing a structure without considering tax and exit.
  • Missing FEMA reporting deadlines.
  • No shareholders’ agreement.
  • Ignoring annual compliance.

How LegalCops can help

  • Explain the routes available for your situation and state
  • Connect you with a lawyer in India from the LegalCops directory
  • Arrange a phone or video consultation across time zones
  • Point you to guides on documents signed abroad

FAQs

Frequently Asked Questions

Can an NRI be the only director?

No. At least one director must meet the 182-day residence requirement.

Can an NRI form a One Person Company?

Yes, since 2021.

Repatriation or non-repatriation basis?

It affects reporting and whether profits and capital can be taken abroad freely — take advice.

Can I run it from abroad?

Yes, with a resident director and good compliance support.

Related

Related Services and Guides

Shareholder disputes & NCLT

Oppression, mismanagement and exits.
Explore →

FEMA & RBI compliance

Rules for NRIs and OCIs.
Explore →

Corporate services

Company law support.
Explore →

Business registration

Registrations and licences.
Explore →

CA and tax services

Returns and compliance.
Explore →

All business services

The full category.
Explore →

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The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action. Last reviewed: November 2026.