Setting Up Business in India by Foreign Companies

The India Steady Growth Trajectory

In the past few years, India has been witnessing rapid growth in Foreign Direct Investments (FDI) due to the change and evolvement in Government policies and regulations. The result of this change in policies and regulations is the increase in the number of people and international Groups coming to India and doing the task of company set up India.

DBPL – A Top Consultant and Guide for Global Companies in India

DBPL, as a provider of business setup services in India, our research also revealed that the number of people searching for the term “setting up business in India by foreign companies” went up by a significant amount. This definitely proves our point in which we see India as the first choice of country or most lucrative destination to do business in. These regulations and changes in the Government policies definitely have made it a stress-free and transparent process for people looking at company set up in India.

The Difference in terms ‘Indian Company’ and ‘Foreign Company’

Let us clear a confusion that exists in the minds of many people today, the question is what is the difference between an Indian Company and Foreign Company? The answer is quite simple when a foreign national person incorporates a company in India, it becomes an Indian Company, and when the same foreign national sets up a branch office in India, and it becomes a Foreign Company.

The Meaning of FDI (Foreign Direct Investment)

Now let us understand what is actually meant by FDI (Foreign Direct Investment):

To keep it simple and short, one can describe FDI as the investment that is made by a foreign national or an NRI in the business. Earlier in around 1990s, India had too many restrictions on company setup in India and FDI policies. But due to change in the ideology, opening up of market and Government policies it has become more beneficial for company setup in India. Every entrepreneur or company interested in company setup in India must go through the guidelines of the FDI and check its eligibility and policies to understand the restrictions or regulations on the given business niche.

The FDI has classified businesses in three major categories are: 

  • Business Sectors where no permission is required for FDI
  • Business Sectors where permission is required from the board regarding the FDI
  • Business Sectors where FDI is not allowed strictly