Q1. Can a foreign national be 100% owner of an Indian company?

Yes. In most sectors, foreign nationals can own 100% of an Indian company under the automatic route without any government approval. However, certain sensitive sectors like defense, media, and insurance have ownership restrictions.

Q2. What is the minimum capital requirement for foreign-owned companies?

There is no minimum capital requirement for private limited companies in India. The company can be incorporated with any amount of authorized capital. However, practical considerations and business requirements should determine the appropriate capital structure.

Q3. Can a foreign director obtain Digital Signature Certificate remotely?

Yes. Foreign directors can obtain Class 3 Digital Signature Certificate remotely through certified authorities. The process involves online application, document submission, and video verification. Liquetax assists foreign clients in obtaining DSC without visiting India.

Q4. How can a foreign national find an Indian resident director?

Foreign nationals can appoint professional directors, friends, business associates, or use professional services that provide resident director services. The resident director's role is primarily compliance-focused and doesn't necessarily involve operational control.

Q5. What are the tax implications for foreign-owned companies?

Foreign-owned companies are taxed as domestic companies in India. The corporate tax rate is 25% for companies with turnover up to ₹400 crore, and 30% for others. Additionally, dividend distribution tax has been replaced with dividend taxation in the hands of shareholders.

Q6. Can profits be repatriated to the foreign parent company?

Yes. Profits can be repatriated to the foreign parent company or shareholders after payment of applicable taxes. The process involves filing necessary forms with the authorized dealer bank and complying with FEMA regulations.

Q7. What ongoing compliances are required after incorporation?

Key ongoing compliances include: Annual financial statements filing with MCA Annual return filing Income tax returns GST returns (if applicable) Board meetings and annual general meetings FDI reporting with RBI

Business Setup

Can Foreigners Register a Company in India? Liquetax Explains

Complete guide for foreign nationals and NRIs to register a company in India. Understand FDI rules, eligibility, process, documents required and compliance requirements.

What this guide covers

What does Can Foreigners Register a Company in India? Explains mean in practice?
Who is affected and what should they check first?
Which documents or records should be kept ready?
What common mistakes should be avoided?