What it takes to join the entrepreneurial bandwagon in India

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Opening a business in India is not as difficult as it was in the days preceding the gradual opening of the Indian economy since 1990s. Today it is not a tough task to register a company in India as a foreigner. There are different ways of doing this. Either you can start from scratch and open a new firm or you can buy an off-the-shelf company.

Both foreign individuals and companies are eligible when it comes to starting business in India. However, there are some restrictions for the foreigners when it comes to starting business in India in certain business areas such as publishing. The question that comes to a foreigner’s mind is: “How to register a company in India as a foreigner?”

India is a hotbed of opportunity for those looking forward to starting business in India. India is full of business opportunities. Any foreign business entity thinking of starting business in India needs to have key information regarding: (a) how to register a company in India as a foreigner, (b) how to start a small business in India, (c) how to start your own company in India,(d) how to form a company in India, (e) International business in India and (f) International business in India.

However, India is not an easy place for those looking forward to starting a business in India. The World Bank ranks India 130th out of 185 countries in ease of starting a new business -worse than Burkina Faso or Nigeria. In spite of the abundance of entrepreneurial opportunities India abounds in, institutional obstacles are barriers to starting business in India.

How to start a small business in India

India is a hugely expanding market with a great potential for starting small businesses. Smaller businesses represent a significant growth engine for India. The small business sector is mostly an under penetrated segment and presents huge opportunities for growth. Small enterprises have been the heart and soul of the Indian economy. They provide employment to the 40% of India’s workforce. They contribute 45 percent of the manufacturing output of India and 40 percent of India’s total exports.

At present, small businesses are responsible for millions of the jobs in India. The number of the small businesses in India is increasing leaps and bounds.

How to register a company in India as a foreigner

As one of the largest economies in the world, it’s no surprise that India has come to the forefront of attention from those looking for international business in India. The potential for foreign business owners is huge and for those keen to venture into this expanding market and make their fortune in India, endless opportunities are there in a variety of sectors.

With the advent of globalization, the world has become smaller, which creates enormous business opportunities for the foreign nationals to launch their businesses in India. It has now become easier for the foreign business owners to reach new clients in India.

The number of foreign company registration in India is growing. Many of the foregn compaies are reaping the financial rewards of starting business in India.

Any foreign company can set up businesses in India by filling Form FC-1 which are documents delivered for foreign company registration in India. The eForm has to be digitally signed by authorized representative of the foreign company.

Once a foreign business owner has decided to form a company in India, an important step to look into is the different government guidelines for setting up a business, seeking permits from the departments concerned and filing registrations along with necessary fee and taxation, etc.

A foreign enterprise can look forward to starting businesses in India by incorporating a business firm under the Companies Act, 1956 through Joint Ventures or Wholly Owned Subsidiaries. For foreign company registration in India, a foreign company has to file a set of applications with Registrar of Companies (ROC) in one of the 29 States/ 7 Union Territories in which the company will establish its registered office. After the registration and incorporation of a foreign business as an Indian company, it is subject to Indian laws and regulations that are applicable to other domestic Indian companies.

First requirement for getting a company registration in India to decide which type of business entity you intend to set up. In India, there are generally four types of legal structure categories for which business registration is required. They are sole-proprietorship, partnership, limited liability partnership (LLP), private limited company and public limited company.

Foreign Companies can set up their business operations in India through Liaison Office/Representative Office, Branch Office and Project Office. With regards to foreign company registration in India, it is incumbent on you to register yourself with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

Foreign enterprises can set up their business operations in India by entering into strategic alliances with Indian partners in the form of joint venture. They can also launch wholly owned subsidiary in sectors where 100% foreign direct investment (FDI) is permitted under the government policy.

Forming a company in India

As any business venture is not without risks, it is necessary that a business owner should seek the support of the business consultants are in demand more than ever. This is due to the fact that a great number of foreign companies, who are confronted with the question ‘how to register a company in India as a foreigner?’, rely on businesses consultants. Like other counties of the world, it is a normal practice in India for the foreign companies to hire business consultants to grow their business and increase their profits by solving their problems, However, in a culturally diverse country like India, business consulting is much more than what is in the US and European world. Therefore, it is in the essential fitness of things to understand the international business in India before you enter the country for business pursuits.

India is home to 29 states and seven union territories. English is one of the official languages of India. It is widely spoken in the business world. Many states or regions have their unique cultural profile and own way of doing business. It is advisable for those looking for foreign company registration in India to choose the state/union territory of location with care. International businesses entering India may be tempted to think that Hindi is spoken in all states. This is not so. Also the food habits of the Indian sharply differ from state to state and region to region. It should be also borne in mind that the business approach that works well in one state of Indian may not succeed in another due to the work culture.

The first step that you have to take in the direction of forming a company in India is to think of a name for your firm. The name should be approved by the ROC. Furthermore, while you are forming a private company, the last words in the name are required to be “Private Ltd.” in the case of a Public Company “Limited” should be included. After the approval of the name, a business owner has to file Memorandum of Association and Articles of Association together with various documents. The Memorandum of Association and Articles of Association are the most important documents that have to be submitted by the business owners to the ROC for the purpose of formation of a company.

Today international business in India is of great significance in the economic development of the country. Globalization has opened new vistas of international business in India


Starting your business in India brings many benefits. India’s status as a fast growing economic power lures the investors to launch their businesses in India. Helping them in their endevour for starting business in India are business consultants offering business consultancy services. It is very much to the point to underline the fact that in their endevour to set up a company in India, Indian business consultants can be of great help in maximizing your benefits with the minimum amount of costs, stress and difficulty.

Before entering India for business pursuits, the entrepreneurs should do well to research the Indian market, the demand for their products or solutions and their client’s expectations. Though Indian customers world require the same products and solutions like their counterparts in other countries of the world but you should be prepared to customize your products and service to meet the local requirements.

Notwithstanding the many challenges facing India, the country is poised for next wave of entrepreneurship which is attracting the attention of the investors.

India can be an exciting market in which business investors can be highly successful – provided they do their homework in a proper manner. Patience and persistence are key to success in international business in India.

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