How can US citizens start a company in India?

Wondering how to handle the company registration process for your business in India when you are residing in the USA? Well, read through the blog for detailed explanations.
It is always exciting and challenging to start a new business in India. The first and foremost thing you should do is to register the business. You need to decide the business entity before doing the registration process. It is possible to register a business entity in India as a private limited company, partnership, LLP, etc. from the United States. It is recommended to register as Liability Limited Partnership or Private Limited Company since these business entities need limited legal compliances and formalities in India. It is possible for US citizens to register their business in India as a private limited company.

What are the conditions to fulfill when registering your business in India from the USA?

Remember, it is easy to register LLP and Private Limited Company. However, there are certain conditions to follow while starting a business in India from the United States.

  • Ensure you have selected a director who is the resident of India. You need to have the necessary KYC details and documents to perform the company registration process.
  • If you are forming as a company, you need to refer the foreign direct limitation. If the sectors arrive automatically, it does not require any RBI approval. But if the sector comes under 100% FDI way, it is essential to get prior approval from the concerned Central Government Ministry or RBI. You need to report to them that you are starting a business. Also, the name should be given for your business along with the preparation work for AOA and MOA of the company.
  • It is essential to ensure that you carry all necessary documents for the company registration. The entire documents should be notarized.

Document needed for company registration in India from the United States
If you are a person living in the United States and willing to start and register a business in India, you need to submit certain relevant documents to carry out the registration process.

  • Photographs
  • Bank statement
  • Social security number
  • Voter ID
  • Driving license
  • Valid passport
  • Resident permit given by the Embassy of India
  • Valid business visa copies issued to foreign national

If you are trying to start a foreign company in India, you need to have the following forms:

  • Incorporation certificate proves that your company is incorporated legally
  • Board decision of the foreign organization
  • Copies of valid ID and address evidence of foreign organization

The process involved in starting a new company in India from the United States
Create a user account in the MCA portal: The applicant should have a user account in the MCA website in India. After creating a user account in the MCA portal, you have to start to perform the company registration. If in case, you do not have an account, you need to create a new account by signing up in the MCA portal.
Obtain DSC: Next, you need to obtain DSC. To obtain DSC, you can directly get in touch with the certifying authorities. You have to share all the necessary legal documents and request for Digital Signature.
Visit MCA website: After obtaining the DSC and getting MCA portal account, ensure to visit the MCA portal and click the following URL: Now you need to apply for company name by making use of the run form.
Provide your company name: After logging in the website, you have to share your company name and refer the database to find out whether it is present or not. After paying the prescribed fees of about INR 1000and submitting the RUN form, you can check for name availability with the help of MCA professionals at the registration center. The MCA will sanction your name and approve as your business name if it is available and unique.
Obtain DIN (Director Identification Number): Get the provision Director Identification Number by filing online. You need to fill and submit the DIN-1 application form. The form should be later printed, signed, and shared for ministry approval along with address and ID proof. Following approval and verification, a permanent Director Identification Number will be issued.
By following all the above steps, your business will be incorporated. Moreover, your business will obtain certification of incorporation. It remains 100% eligible to run in India from the USA.

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