India Entry Advisor

How should a foreign individual or company start business in India?

Use this tool where a foreign individual or foreign entity wants to set up or expand business in India. It separates personal promoter routes from foreign entity routes and shows the likely structure, FDI sector position, land border approval requirement and dividend repatriation impact. Liaison office and branch office are foreign entity routes. They are not direct personal setup options for an individual foreign national.

Individual setup Entity setup FDI sector check Land border check Repatriation calculator
What this tool covers
2 TracksIndividual promoter and foreign entity routes
60+ EntriesPolicy sectors plus common unlisted sectors
20 CountriesDTAA withholding tax rates
PN2 2026Updated land border ownership check
Image: Andres Gomez
How it works
First identify the applicant, then check the FDI position.

Start by stating whether the applicant is an individual foreign national or a foreign entity. The result changes because WOS, JV, liaison office and branch office are foreign entity routes. An individual foreign national cannot directly open an LO or BO in India.

Individual route covers private company, LLP and resident director requirements.
Foreign entity route covers WOS, JV, liaison office, branch office and project office style entry.
LO/BO applicant should be a foreign company, body corporate or overseas registered firm/association.
Sole proprietorship and ordinary partnership are not standard automatic routes for foreign nationals.
FDI check includes formal policy sectors and common unlisted sectors such as information technology.
Core rule
Unlisted usually means 100% automatic
DPIIT policy generally permits 100% FDI under the automatic route in sectors not specifically listed, subject to sector laws, security conditions, PN2/PN3 land border checks and activity specific licences.
DTAA planning
Structuring through a jurisdiction with a favourable Double Taxation Avoidance Agreement may reduce dividend withholding tax, where treaty conditions are met. The repatriation calculator shows the impact for 20 treaty partners.

Setup strategy advisor

Answer six short questions to separate individual setup from foreign entity entry. The result will not force WOS or JV where the applicant is an individual foreign national.

Q1
Who is entering India?
This is the main starting point. A foreign individual founder usually needs an Indian company or LLP route. A liaison office or branch office cannot be opened directly by an individual foreign national. It is an RBI/FEMA route for an eligible foreign entity.
Q2
What do you want to do in India?
Operating a business, testing the market and earning revenue through a branch have different setup routes. LO/BO choices assume a foreign entity applicant, not an individual applicant.
Q3
What is the FDI status of your sector?
If you are unsure, use the FDI sector check. Many ordinary service sectors, including information technology and software, are not separately listed and are generally treated as 100% automatic, subject to applicable laws.
Q4
Is there a land border country connection?
Press Note 3/Press Note 2 checks can require government route if the investor, citizen, entity or relevant beneficial owner is connected to Afghanistan, Bangladesh, Bhutan, China, Myanmar, Nepal or Pakistan.
Q5
Do you have an India resident director or designated partner available?
Indian companies need at least one resident director. LLPs need a resident designated partner. This often becomes the practical blocker for individual foreign promoters.
Q6
Which priority matters most?
Select the point which matters most. The recommendation changes across private company, LLP, WOS, JV, liaison office and branch office routes.

Structure comparison

Use this comparison so that every foreign entrant is not pushed into WOS or JV. Individual founders usually evaluate private company and LLP routes first. Eligible foreign entities may evaluate WOS, JV, liaison office and branch office routes.

Route Best fit Key limits Typical filings
Private company by foreign individual Foreign national wants to build and operate an Indian business directly. Needs at least one resident director; sector cap, PN2/PN3, pricing, bank KYC and visa or residential status issues still matter. SPICe+ incorporation, PAN/TAN/GST as applicable, FC-GPR for foreign share subscription, FLA if foreign investment exists.
LLP with foreign individual or entity Professional services, consulting, software and other 100% automatic sectors with no FDI linked performance conditions. Not suitable for capped or government route sectors or sectors with FDI linked performance conditions; needs resident designated partner. LLP incorporation, FDI reporting for capital contribution/profit share, annual LLP filings, tax registrations as applicable.
Wholly Owned Subsidiary (WOS) Foreign parent company wants full control of an Indian company. Only where sector permits foreign ownership up to the intended level; resident director required. Company incorporation, share subscription, FC-GPR, FLA, statutory audit, MCA annual filings.
Joint Venture (JV) Partner brings licences, distribution, regulatory access, capital or capped sector participation. Needs governance, reserved matters, deadlock, IP, non compete, exit and valuation provisions. Company/LLP filings plus JV agreement, FDI reporting, sector approvals if government route applies.
Liaison Office Foreign company, body corporate or overseas registered firm/association wants India market research, promotion, representation or parent company communication channel. Cannot earn revenue or commercial/trading/industrial activity in India; not available for an individual founder as a standalone personal setup. Form FNC through designated AD Category-I bank, RBI/UIN process where applicable, annual activity certificate, remittance-funded expenses.
Branch Office Foreign company, body corporate or overseas registered firm/association wants limited India revenue from permitted activities such as consultancy, export/import, IT/software, research or technical support. Activity restricted; not a general operating company and not a route for an individual founder. Form FNC through designated AD Category-I bank, RBI/UIN process where applicable, tax registration, annual activity certificate, branch accounting and tax filings.

Quick route cards

Use these cards to compare revenue ability and usual blockers without mixing individual and foreign entity routes.

Individual setup

Private Company

Most flexible route for a foreign individual who wants to operate, hire, contract, raise capital and own Indian equity directly.
RevenuePermitted
ControlCan be majority or 100% foreign owned if sector permits.
BlockerResident director, KYC, bank onboarding, FC-GPR and tax registrations.
Individual or entity setup

LLP

Useful operating route for professional, consulting, software and similar sectors where FDI is 100% automatic and no FDI linked performance conditions apply.
RevenuePermitted
Best forLower compliance and founder led services.
BlockerNot for capped or government route sectors or FDI linked performance conditions.
Do not overuse WOS terminology

If a foreign individual personally starts an Indian company, the better description is usually a foreign owned Indian private company, not a WOS. WOS is most useful when a foreign parent company owns the Indian subsidiary.

LO and BO are foreign entity routes

An individual foreign national cannot directly open a liaison office or branch office in India. Under the RBI/FEMA framework, the applicant is an eligible foreign entity such as a company, body corporate or firm/other association registered outside India, with Form FNC routed through a designated AD Category-I bank and RBI/Government consultation where required.

No proprietorship shortcut for foreign nationals

A standard foreign national should not treat sole proprietorship or ordinary partnership firm as a practical India entry structure. NRI/PIO permissions are separate, usually limited and cannot be assumed for other foreign nationals. A non-NRI/PIO applicant would need prior RBI approval, decided with the Government of India, so this is an exceptional approval route rather than a normal setup path.

FDI sector check

Search by formal sector or plain business terms. This section includes listed DPIIT sectors and common unlisted activities such as information technology, software, SaaS, BPO, consulting and professional services.

Loading sector list
How to read unlisted sectors

DPIIT policy generally allows 100% FDI under automatic route in sectors not specifically listed, subject to applicable laws, security conditions and land border beneficial ownership rules. For example, information technology and software services are usually treated through this unlisted sector rule unless the activity also falls into telecom, digital news, e-commerce, financial services or another regulated category.

Repatriation calculator

Estimate how much dividend income may be repatriated to a non-resident investor after Indian domestic tax, surcharge, health and education cess and the available DTAA cap are compared.

Domestic Loaded Rate
-
20% base plus surcharge and 4% cess
DTAA Treaty Cap
-
Generally treated as inclusive of surcharge and cess
Tax at Domestic Rate
-
Base tax, surcharge and cess
Tax at DTAA Rate
-
Net Repatriation (Domestic)
-
Net Repatriation (Best Rate)
-
Lower of domestic loaded rate and DTAA cap
Tax Benefit from Best Rate
-
Compared with the fully loaded domestic rate
Withholding tax check

The calculator compares loaded domestic dividend withholding with the selected treaty cap. For a live payment, confirm surcharge slab, TRC, Form 10F, beneficial ownership and PPT comfort before relying on the rate.

Post setup compliance checklist

Use this closing list to track incorporation, inward investment reporting and the first set of recurring compliance after the structure is selected.

Execution status 0 of 11 items complete
Phase 1 Formation
Phase 2 FDI and RBI
Phase 3 Recurring filings
Phase 1
Incorporation and registration
0/3 complete
Phase 2
FDI reporting and RBI compliance
0/3 complete
Phase 3
Ongoing compliance
0/5 complete
India market entry guidance Foreign investor setup, FDI check and repatriation planning Read notes

Foreign investor setup, FDI check and repatriation planning in one tool.

The India Entry Advisor is for foreign nationals, non-resident founders and overseas parent companies evaluating how to start or expand business in India. It separates individual promoter routes from foreign entity routes, because a foreign individual setting up an Indian private company is not the same planning question as a foreign parent choosing between a wholly owned subsidiary, joint venture, branch office, liaison office, LLP or project style presence. Branch office and liaison office are treated as foreign entity routes and not direct personal setup options for individual foreign nationals.

It also connects structure choice with FDI sector treatment, Press Note 2 land border beneficial ownership checks, FEMA reporting steps and dividend repatriation tax. This is useful before incorporation documents, shareholder agreements, RBI filings or tax treaty paperwork are prepared.

Can a foreign national run a sole proprietorship in India?

For ordinary foreign nationals, sole proprietorship and ordinary partnership are not practical automatic route entry structures. The tool flags those points and refers users to incorporated or approved routes.

Is WOS always required for India entry?

No. A WOS is mainly a foreign entity route where a foreign parent owns the Indian subsidiary. Individual promoters usually evaluate private company or LLP routes. LO and BO are separate foreign entity routes.

Can an individual open an LO or BO?

No. A liaison office or branch office is opened by an eligible foreign entity such as an overseas company, body corporate or registered firm/association through the RBI/FEMA route. An individual foreign national should not treat LO or BO as a direct personal setup structure.

Does the FDI check cover IT and SaaS?

Yes. The FDI check includes formal policy sectors and common unlisted sectors such as information technology, software, SaaS, BPO, consulting and professional services.

Does it estimate dividend repatriation tax?

Yes. The calculator compares fully loaded Indian domestic withholding with selected DTAA treaty caps, including surcharge and health and education cess in the domestic rate calculation.

Note: This is an India-entry planning aid. Confirm FDI policy, sector caps, RBI/FEMA reporting, tax treaty position and AD bank requirements before investing or filing.