Yes. Foreign nationals and NRIs can register a company in India (typically a Private Limited Company) under the Companies Act, 2013, provided at least one director is an Indian resident and FDI/FEMA compliance is met.
Common structures: Private Limited Company (up to 100% FDI in most sectors via automatic route), Liaison/Branch/Project Office, or LLP (with RBI approval for foreign LLP investment).
Yes, your home address can be used as the registered office; no separate commercial address is legally required, just proof like a utility bill/rent agreement and NOC from the owner.
Yes, via a One Person Company (OPC) under the Companies Act, 2013, with a nominee director required; alternatively, a solo founder can also form a Private Limited Company with a second nominal shareholder.
Reserve a unique name via the RUN/SPICe+ Part A service on the MCA portal, checking for trademark and existing name conflicts; approval or rejection typically comes within 1–2 working days.
End-to-end incorporation via the SPICe+ integrated form usually takes 7–15 working days, covering DSC, name approval, and MCA certificate issuance.
A Private Limited company typically costs ₹18,000–₹32,000, while an LLP costs ₹10,000–₹22,000, covering government fees, stamp duty, and professional charges.
PAN, Aadhaar, address proof, and photo of directors/shareholders, plus registered office proof (utility bill + NOC) and DSC for signing e-forms.
A Virtual CFO is an outsourced financial expert who provides strategic finance leadership—budgeting, fundraising, compliance—on a part-time or remote basis without being a full-time employee.
They handle financial planning, cash flow management, fundraising support, investor reporting, tax strategy, and compliance oversight, acting as a strategic advisor rather than just a bookkeeper.
An accountant records transactions and ensures compliance, while a Virtual CFO uses that data for strategic decisions—forecasting, fundraising, and growth planning.
Yes, especially once they raise funding or scale revenue, since financial strategy, investor reporting, and compliance become too complex for founders to manage alone.
Yes, if they need strategic financial guidance—cash flow, pricing, fundraising—without the cost of a full-time CFO salary.
Hire one when revenue, complexity, or fundraising activity outpaces what a bookkeeper or accountant can strategically manage, typically post-seed funding or ₹1–5 crore+ revenue.
Bookkeeping, reporting cadence, and how ongoing accounting support is delivered.
It cuts costs versus a full-time hire, brings in expert compliance knowledge, and lets founders focus on core business instead of bookkeeping and tax filings.
Startups typically need transaction recording, bank reconciliation, invoicing, payroll processing, and GST/TDS filing support as core bookkeeping services.
It’s the regular recording and reconciliation of all financial transactions—sales, expenses, bank statements—every month to keep books accurate and audit-ready.
Zoho Books, Tally, and QuickBooks are popular in India, with the right choice depending on business size, GST compliance needs, and integration requirements.
Profit & Loss statement, Balance Sheet, Cash Flow statement, and GST/TDS returns are essential reports every startup should maintain monthly or quarterly.
Bookkeeping is the day-to-day recording of transactions, while accounting involves analyzing, interpreting, and reporting that data for strategic decisions and compliance.
Claim eligible deductions (Section 80JJAA, depreciation, R&D), opt for beneficial tax regimes, utilize startup tax exemptions (Section 80-IAC), and invest in tax-saving instruments.
Companies pay Corporate Income Tax (22–30% depending on regime), GST on sales, TDS on payments, and applicable state taxes like professional tax.
Most businesses file GST returns monthly (GSTR-1, GSTR-3B), while small taxpayers under the QRMP scheme can file quarterly with monthly tax payments.
Late filing attracts ₹50/day (₹20/day for nil returns) plus 18% annual interest on unpaid tax, with harsher penalties for deliberate evasion.
Yes, once turnover exceeds ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh/₹10 lakh in special category states); certain categories must register regardless of turnover.
Businesses crossing the turnover threshold, plus mandatory categories like e-commerce sellers, casual taxable persons, and inter-state suppliers, regardless of turnover.
The ROC strike-off process typically takes 3–6 months from application filing to final approval and removal from the register.
Typically 3–6 months, including a mandatory public notice period and ROC verification before the company name is officially struck off.
It’s the formal removal of a company’s name from the Registrar of Companies’ register under Section 248 of the Companies Act, 2013, ending its legal existence.
Under Section 248, the ROC can strike off a company that’s inactive, has no operations, and has cleared liabilities—either suo motu or via voluntary application (Form STK-2).
Yes, inactive companies with no assets/liabilities can be closed via the fast-track STK-2 strike-off route, provided they haven’t conducted business for 2+ years.
Expand into India seamlessly with dedicated setup and compliance support.
US founders can incorporate a Private Limited Company (most common) with 100% foreign ownership under the automatic FDI route, needing at least one resident Indian director, a local registered address, and DSCs for all directors — no RBI pre-approval required for most sectors.
10–15 working days on average via the MCA’s SPICe+ portal, assuming documents are in order and no name/RBI queries arise.
Get DSC + DIN for directors, reserve a name, file SPICe+ (incorporation + PAN/TAN + GST), then open a bank account and file FDI reporting (FC-GPR) with RBI post-funding.
Private Limited incorporation: ~2 weeks; add 2–4 weeks for a compliant Indian bank account and first FDI inward remittance reporting.
Most US companies use a Wholly Owned Subsidiary (Private Limited Company) for full control and 100% FDI eligibility, or start with an EOR to test the market before committing to entity setup.
A Private Limited Company where the US parent holds 100% shares (via automatic FDI route in most sectors), giving full operational, IP, and liability control as a separate Indian legal entity.
Requires RBI approval, allowed only for specific activities (export/import, consultancy, R&D on behalf of parent) — cannot conduct manufacturing or retail trading, and profits are taxed at a higher rate (~40%) than subsidiaries.
Foreign LLP investment is allowed 100% under automatic route only in sectors with no FDI-linked performance conditions; less common for US tech/startups since it can’t easily raise equity funding or issue ESOPs.
An EOR lets a US company legally hire Indian employees without incorporating a local entity — the EOR handles payroll, compliance, and statutory benefits (PF, ESI, gratuity).
EOR is faster (days) and needs no upfront capital, ideal for testing/hiring a few people; a legal entity (Pvt Ltd) takes weeks but is necessary for scaling, owning IP/assets, signing local contracts, or raising India-based funding.
Every Indian company (including foreign-owned) must have at least one director who has stayed in India for 182+ days in the previous financial year, as mandated under Section 149(3) of the Companies Act, 2013.
Since most foreign founders don’t meet the residency test, companies often appoint a professional nominee resident director (via a service provider) purely to satisfy compliance, with no operational control or shareholding.
The resident director can be an Indian citizen or an NRI/foreign national meeting the 182-day stay test; there’s no requirement that they hold shares, and their liability is limited to statutory compliance duties, not business decisions.
Foreign nationals/entities can hold 100% shares in an Indian Private Limited Company under the automatic FDI route, but must appoint one resident director, obtain DSC/DIN, and notarize/apostille foreign documents (passport, address proof) for filing.
Profits can be repatriated via dividends, royalty/technical fee payments, or buyback of shares — all freely permitted under India’s current account convertibility, subject to applicable withholding tax and a CA-certified Form 15CB/15CA filing.
Form FC-GPR (Foreign Currency-Gross Provisional Return) must be filed with RBI via the FIRMS portal within 30 days of allotting shares to the foreign investor, reporting the FDI inflow.
Foreign investment in eligible sectors flows in via the automatic route (no prior approval) for most sectors like IT/services, requiring only post-facto RBI reporting (FC-GPR) and adherence to sectoral caps/pricing guidelines.
Dividends paid to a US shareholder attract 20% withholding tax under Indian domestic law (plus surcharge/cess), reducible to 15% under the India-US Double Taxation Avoidance Agreement (DTAA) if the US recipient furnishes a Tax Residency Certificate and Form 10F.
Under Article 10 of the India-US DTAA, dividend withholding tax is capped at 15% (vs. 20%+ domestic rate), and the tax paid in India can typically be claimed as a foreign tax credit in the US.
Common routes are dividends (post-tax profit distribution), royalty/fee-for-technical-services payments to the US parent, or share buybacks/capital reduction — each requires a CA certificate (Form 15CB) and RBI/AD bank filing before remittance.
Since the US is a Hague Convention member, documents like passport copies and address proof need an apostille from the US Secretary of State’s office (not embassy legalization), which India accepts directly for company registration.
The passport copy must first be notarized by a US notary public, then apostilled by the Secretary of State of the state where notarized, before submission for Indian company incorporation.
Required documents include notarized-and-apostilled passport copy, overseas address proof (utility bill/bank statement), passport-size photo, and a Digital Signature Certificate (DSC) application for each foreign director/shareholder.
For apostille-convention countries like the US, “legalization” simply means notarization + apostille (no separate Indian embassy attestation needed); non-Hague countries require embassy/consulate attestation instead.
