Whether you want to set up in India or in the country where you live, this guide covers the main business structures, the steps to register, and the official places to go. It is written for people of Indian origin, including NRIs (Indian citizens living abroad) and OCI cardholders.
Please note: this guide is general information for the India Grows community, not legal, tax or financial advice. Rules and rates change often. Check the official sources linked here, and take advice from a qualified professional (such as a chartered accountant, company secretary or lawyer) before you act. Medicto Ltd, which runs India Grows, is not a regulated entity. Last checked: 16 October 2026.
Opening a business in India
Companies and LLPs in India are registered online with the Ministry of Corporate Affairs (MCA). Most of the process can be done from abroad, but some structures need a director or partner who is resident in India.
Choosing a structure
| Structure | Who can set it up | Good to know |
|---|---|---|
| Private limited company | At least 2 directors and 2 shareholders. NRIs, OCI cardholders and foreign nationals can be directors and shareholders. | At least one director must be resident in India, meaning in India for at least 182 days in the financial year (Companies Act 2013, section 149(3)). Limited liability, and the most common choice for investors and growth. |
| Limited liability partnership (LLP) | At least 2 designated partners. | At least one designated partner must be resident in India, meaning in India for at least 120 days in the year. Simpler compliance than a company. |
| One person company (OPC) | A single Indian citizen. Since 1 April 2021 this includes NRIs. | Needs a nominee, and the residency test for OPCs is 120 days. Not open to foreign nationals, including OCI cardholders. |
| Branch, liaison or project office | A company based outside India. | Needs approval through an Indian bank (an authorised dealer) under RBI rules. Useful for testing the market before setting up a subsidiary. |
Steps to register a company
- Get a Digital Signature Certificate (DSC) for each director and subscriber. You need one to sign the online forms. NRIs usually need their documents notarised or apostilled.
- Reserve the name and incorporate with SPICe+, the MCA’s single online form. It covers the company name, incorporation, Director Identification Numbers (DIN), and the company’s PAN and TAN.
- Register for other services through AGILE-PRO-S, filed with SPICe+: GST (if needed), employee provident fund (EPFO), state insurance (ESIC), professional tax in some states, and opening the company’s bank account.
- Report foreign investment. If shares are issued to a non-resident on a repatriable basis, the company must report it to the RBI on the FIRMS portal (form FC-GPR) within 30 days of issuing the shares.
- Start your yearly compliance: appointing an auditor, board meetings, annual returns with the MCA and income tax returns.
Investing as an NRI or OCI
- Most sectors are open to foreign direct investment (FDI) under the automatic route, with no government approval needed. Some sectors have limits or need approval. Invest India and DPIIT publish the current FDI policy.
- NRIs and OCI cardholders can also invest on a non-repatriation basis, which is treated like a domestic investment. The trade-off is that the money and profits can’t freely be sent back abroad.
- Fund your investment through proper banking channels, such as your NRE, NRO or FCNR account or an inward remittance, so it can be reported correctly. See our guide to money remittance.
Tax and other registrations
- GST: registration is generally required once yearly turnover passes ₹40 lakh for goods or ₹20 lakh for services (lower in some states), and for most interstate or online sales. Register on the GST portal.
- Income tax: companies and LLPs file yearly returns on the Income Tax e-filing portal.
- Startups: new businesses can apply for DPIIT recognition through Startup India for benefits such as easier compliance and some tax relief.
- Some activities also need licences, such as an Import Export Code (IEC) from the DGFT for import and export businesses, or FSSAI registration for food businesses.
Opening a business in the UK
- Most people set up a private limited company online with Companies House. It usually takes about a day, and the online fee is £100 (from 1 February 2026).
- Directors and people with significant control (PSCs) must verify their identity with Companies House. This can be done free through GOV.UK One Login, or through an authorised company formation agent.
- Register for Corporation Tax with HMRC, and for VAT once your taxable turnover passes the VAT threshold.
- Other options include sole trader (register for Self Assessment) and limited liability partnership. GOV.UK: set up a business explains each.
Opening a business in the UAE
- Mainland company: licensed by the economic department of each emirate (in Dubai, the Department of Economy and Tourism). It can trade anywhere in the UAE. 100% foreign ownership is allowed for most activities.
- Free zone company: set up in one of the UAE’s many free zones (such as DMCC, IFZA, Dubai South, RAKEZ or ADGM). Free zones offer 100% foreign ownership and quick setup, but some restrict trading directly with the UAE mainland.
- Corporate tax: 9% on taxable profits above AED 375,000 (0% below that), with special rules for qualifying free zone income. Register with the Federal Tax Authority. VAT is 5%.
- The government portal u.ae lists the official steps for each emirate.
Before you commit
- Think about tax in both countries. India has double taxation avoidance agreements (DTAAs) with the UK, UAE, USA and many other countries.
- Check that any agent or consultant is properly qualified, such as a chartered accountant (ICAI) or company secretary (ICSI) in India.
- Looking for a partner, investor or distributor? Browse the deals or post your own on India Grows.