Incorporation of Business Entity
India is one of the fastest-growing economies in the world and a highly promising destination for starting a new business. With a robust regulatory framework and increasing ease of doing business, India has emerged as an attractive investment hub for Non-Resident Indians (NRIs).
NRIs are permitted to establish new business entities or acquire existing businesses (partly or wholly) in India, subject to applicable regulations. In most cases, a company with NRI investment can be incorporated within 10–15 working days, making the process efficient and business-friendly.
Type of Business Entities Available
NRIs can choose from the following business structures in India:
- Private Limited Company : Ideal for startups and growing businesses with limited liability and ease of funding.
- Public Limited Company : Suitable for large-scale businesses planning to raise capital from the public.
- Limited Liability Partnership (LLP) : A flexible structure combining the benefits of partnership and limited liability.
Business Setup Options for NRIs
Depending on investment strategy and control preferences, NRIs can opt for:
- Wholly Owned Subsidiary (WOS) : 100% ownership by the NRI or foreign entity (allowed in most sectors under automatic route).
- Joint Venture (JV) Company : Partnership with an Indian/NRI resident or company to leverage local expertise and market access.
Regulatory Framework
NRI investments are governed by guidelines issued by the Reserve Bank of India and the Ministry of Corporate Affairs, along with the Foreign Direct Investment (FDI) policy.
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