Foreign Company Incorporation from India.
Setting up a company abroad is two jobs: forming it in the other country, and doing it correctly from India under FEMA and the income-tax rules. I handle both for founders and Indian companies - in the USA, the UK, Australia, the UAE, Singapore and other countries - from choosing where to incorporate to the yearly filings on both sides.
Where Indian founders incorporate.
The right country follows your customers, your investors and the tax. The five we set up most often, side by side:
| Country | Usual vehicle | Usually fits | Watch first |
|---|---|---|---|
| USA | Delaware C-Corp, or a Wyoming or Delaware LLC | US customers, US venture funding, SaaS | US tax filings from year one, including Form 5472 for a foreign-owned LLC |
| UK | Private limited company (Ltd) at Companies House | UK and European customers and contracts | Banks often want a UK-resident director or a UK footprint; many founders start with an e-money account |
| Australia | Proprietary limited company (Pty Ltd), registered with ASIC | Australian customers, contracts and local hiring | At least one director must ordinarily live in Australia; every director needs a director ID |
| UAE | Free zone company, or a mainland company | Gulf and Middle East trade, services, holding | 9% corporate tax on profit above AED 375,000; the free zone 0% applies only if the qualifying conditions are met |
| Singapore | Private limited company (Pte Ltd), registered with ACRA | Asia-Pacific hub, regional holding, investor familiarity | At least one director who lives in Singapore; GST registration is compulsory above SGD 1 million turnover |
A rule of thumb, not advice for your case: tax rates and thresholds change, and we confirm the current position for your facts before anything is formed.
Company registration, country by country.
USA company registration from India
Delaware C-Corp for venture-backed startups, an LLC for services and trading. Formation, EIN, registered agent, US bank, and the US and India filings on one calendar.
USA company registrationUK company registration from India
A private limited company at Companies House, formed online without visiting the UK - usually within a day once identity checks are done. Corporation tax is 19% up to GBP 50,000 of profit and 25% above GBP 250,000.
UK company registrationAustralia company registration from India
A Pty Ltd registered with ASIC, with a director who ordinarily lives in Australia, director IDs for every director, a registered office, then an ABN and a TFN.
Australia set-upUAE company setup from India
A free zone company or a mainland company. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above it; a free zone company keeps 0% on qualifying income only if it meets the qualifying free zone person conditions.
Dubai / UAE company setupSingapore company registration from India
A Pte Ltd registered with ACRA, with at least one director who lives in Singapore. Headline corporate tax is 17% with a start-up exemption, and GST registration is compulsory above SGD 1 million turnover.
Singapore company registrationAnother country?
The India side - ODI or LRS, Form FC, the Annual Performance Report and Schedule FA - is the same wherever you incorporate. Tell us the country and the plan; we scope the local side and run the India side.
Australia company registration from India.
Australia is a natural next market for Indian IT, services and consumer businesses. The usual route is an Australian Pty Ltd; some Indian companies register a branch instead.
Pty Ltd registered with ASIC
A proprietary limited company registered with ASIC gets an Australian Company Number (ACN). It needs a registered office in Australia and at least one director who ordinarily lives in Australia.
Director IDs before appointment
Every director, including directors living in India, needs a director ID before being appointed, so we start that on day one.
ABN, TFN, GST and company tax
The company then registers for an Australian Business Number (ABN) and a Tax File Number (TFN), and for GST once its GST turnover reaches AUD 75,000. Company tax is 30%, or 25% for a base rate entity.
Or a branch of the Indian company
An Indian company can instead register in Australia as a foreign company, with an ARBN and a local agent. It avoids a second company, but the Indian company carries the Australian liabilities directly - we compare both before you choose.
Australian banks run strict identity checks on overseas owners, so we plan the bank account together with the registration. Rates and thresholds can change; we confirm them for your case.
What FEMA and Indian tax require.
Wherever you incorporate, money and shares leave India, so Indian rules apply from day one. This is the half of the job that is easiest to miss.
ODI or LRS route
An Indian company or LLP invests through Overseas Direct Investment via its AD bank. A resident individual can invest under LRS, up to USD 250,000 a financial year, in an operating business outside financial services, without step-down subsidiaries where the individual has control.
ODI compliance serviceForm FC when the money goes
The investment is reported to the RBI through the AD bank in Form FC when the money is sent. The shares are issued abroad, and the records are kept for every later filing.
APR, FLA and Schedule FA
Every year: the Annual Performance Report on the foreign company, the FLA return where it applies, and Schedule FA in the income-tax return of each resident who holds the shares or signs on a foreign account.
Annual ODI reportingTax residence, DTAA and transfer pricing
A foreign company managed from India can be taxed in India under the place-of-effective-management test, which applies above Rs 50 crore turnover. We plan board control, DTAA relief, foreign tax credit and transfer pricing from the start.
From India to a working company abroad.
- 01
Scoping call
Your customers, investors, team and timeline, and how money will move in and out - the facts that decide the country.
- 02
Country and entity
We compare countries and entity types on tax, investor fit, banking and running cost, and recommend one.
- 03
India route first
Decide ODI or LRS, line up the AD bank and the documents, and plan Form FC, so the first remittance is compliant.
- 04
Formation abroad
Incorporation with the local registry - Delaware or Wyoming, Companies House, ASIC, a UAE free zone or ACRA - with a local registered agent or service provider where the country requires one.
- 05
Tax registrations and bank
Local tax registrations and the bank or payment account, planned around the identity checks each bank runs on Indian owners.
- 06
Remit and report
Send the capital through the AD bank, file Form FC, issue the shares abroad and keep the records for the India filings.
- 07
Year-one compliance
Local annual filings and tax returns, plus the APR, the FLA return where it applies and Schedule FA in India, on one calendar.
Foreign incorporation questions.
Which country is best for an Indian founder's company abroad?
It depends on customers and investors. US venture capital and US customers point to a Delaware C-Corp; UK or European customers to a UK Ltd; Australian customers and hiring to a Pty Ltd; Gulf trade or a holding company to the UAE; an Asia-Pacific hub to Singapore. We compare them on your facts before anything is formed.
Can a resident Indian individual own a foreign company?
Yes, under the Liberalised Remittance Scheme, up to USD 250,000 per financial year, if the foreign company runs an operating business outside financial services and, where you control it, has no step-down subsidiaries. The investment is reported in Form FC, and then every year.
What is ODI?
Overseas Direct Investment: an Indian company or LLP investing in the shares or capital of a foreign entity under the Foreign Exchange Management (Overseas Investment) Rules, 2022. It goes through the AD bank, is reported in Form FC, and needs an Annual Performance Report every year.
How do I register a company in Australia from India?
Most founders form an Australian Pty Ltd with ASIC. You need at least one director who ordinarily lives in Australia, director IDs for all directors and a registered office there; the company then takes an ABN and a TFN. The India side - ODI or LRS and Form FC - applies as for any other country.
Can I set up a UK company without visiting the UK?
Yes. A UK private limited company can be incorporated online at Companies House, usually within a day once identity checks are done. The harder part is banking: many UK banks want a UK-resident director or a UK footprint, so founders often start with an e-money account.
What do I have to file in India every year for a foreign company?
The Annual Performance Report on the foreign company through the AD bank, the FLA return where it applies, and Schedule FA in the income-tax return of each resident shareholder or signatory. Missing these is one of the most common gaps in founder set-ups.
Will the foreign company be taxed in India?
It can be, if it is effectively managed from India. The place-of-effective-management test applies to companies with turnover above Rs 50 crore, and other rules, such as a permanent establishment in India, can apply below that. We plan board control, DTAA relief and transfer pricing so the income is taxed where it should be.
Can you guarantee the bank account, licence or visa?
No. Banks, free zone authorities and immigration offices make their own decisions. We prepare complete applications and choose the routes that usually work for Indian-owned companies, but the approval is theirs.
- Where to Incorporate: US, UAE, Singapore or UK for Indian Founders
- UK Limited Company from India: Setup, Tax and Compliance
- UAE Free Zone Company from India: Setup and Compliance
- Singapore Pte Ltd from India: Setup and Annual Compliance
- Delaware C-Corp vs Wyoming LLC for Indian Founders
- ODI vs LRS: Owning a US Company from India Under FEMA
- US Tax Calendar for Indian-Owned LLCs and C-Corps (5472, 1120)
- Vraj Changani - CA, Startup Advisor & IPO Consultant
Choosing a country? Start with the India side.
Tell us where your customers and investors are and how you plan to fund the company. We will recommend the country and the entity, and set out the FEMA route before anything is formed.
WhatsApp +91 88664 48967 - CA Vraj Changani, DRSPV & Associates, Mumbai.