First published on 22 September 2025. Laws, rates and forms may have changed since, including the move from the Income Tax Act, 1961 to the Income-tax Act, 2025 from 1 April 2026. This guide is general information, not advice on your facts; check the current position or talk to us before you act.
Starting a business in India in 2025 has become much easier thanks to automation, digitization, and expert service providers. However, the process still involves multiple legal, tax, and regulatory requirements. This is where ProLead comes in — simplifying the journey for foreign and Indian entrepreneurs alike. Let’s go step by step.
Incorporating a company in India
Company incorporation and compliance requirements are regulated under the Companies Act, 2013.
To incorporate a company in India, a minimum of two directors and two shareholders are required, and in some cases, the same individuals can act as both directors and shareholders. Additionally, at least one of the directors must be a resident of India, and it is mandatory for the company to have a registered office address within India for incorporation purposes.
- For foreign entrepreneurs, these requirements may look challenging. ProLead provides solutions such as:
- Nominee Director Services – fulfilling the requirement of an Indian resident director.
- Virtual Office Solutions – giving you an official registered office address in India without the need to lease a physical space.
This makes the incorporation process seamless, fast, and less time-consuming. See registered office requirements for a foreign-owned company in India and documents required to set up an Indian subsidiary.
Foreign investment and FEMA reporting
If the company will have foreign shareholders, the investment is governed by India’s foreign exchange rules (FEMA) and the FDI Policy. In most sectors a foreign company or individual can own up to 100% of an Indian company under the automatic route, without prior government approval. A few sectors are prohibited, some have caps or need approval, and investors from countries that share a land border with India need approval in every sector.
Once the parent or foreign investor remits capital through banking channels, the company must allot shares within 60 days of receiving the money and report the allotment to the RBI in Form FC-GPR within 30 days of allotment. Every company with foreign investment also files the annual FLA return by 15 July.
Our India set-up portal, StartBusinessinIndia.com, covers each step in detail:
- Can a foreign company own 100% of an Indian company?
- Directors, shareholders and capital for an Indian private limited company
- How to open a bank account and remit capital to your Indian subsidiary
- FEMA filings for a foreign-owned Indian subsidiary
- Annual compliance calendar for an Indian subsidiary
Post setup compliance
Once the company is incorporated, there are multiple registrations and compliance requirements depending on the nature of business. ProLead provides end-to-end support for:
- Bookkeeping, Accounting & Auditing
- MSME Registration
- Import Export Code (IEC) Registration
- GST Registration
- Shops & Establishment Registration
- Employee Provident Fund (EPF) Registration
This ensures your company is legally compliant and fully operational.
Annual recurring compliance
Running a company in India also requires regular filings under various laws. ProLead assists with:
Under Companies Act, 2013
- Director KYC & Renewal
- Director Interest Declarations
- Preparation of Board Reports
- Statutory Audits
- Filing of Annual Returns with MCA.
Accounting & taxation
- Complete accounting & bookkeeping services
- GST Filings and compliance under GST Law
- Income Tax Filings (corporate & individual directors)
Legal support
- Contract Drafting & Review – from employment contracts to complex agreements like:
- Beneficial Shareholding Agreements
- Shareholders’ Agreements
- Business Transfer Agreements
Why do you need a trusted partner like ProLead?
Setting up and running a business in India requires continuous compliance. Missing deadlines or overlooking laws can lead to penalties, legal hurdles, and reputational risk.
How ProLead helps
- End-to-End Support – from incorporation to annual compliance.
- Expertise in Multiple Domains – Company Law, Income Tax, GST, RBI/FEMA laws, and Contract Drafting.
- Peace of Mind – so you can focus on growing your business while ProLead ensures you remain compliant.
Conclusion
India offers vast opportunities for entrepreneurs, but regulatory requirements can be overwhelming. Choosing the right partner is crucial for success.
With its decade-long experience, expert team, and one-stop business solutions, ProLead is the smart choice for businesses looking to establish and scale in India. Whether you’re a foreign investor or an Indian entrepreneur, ProLead ensures that your journey to building a business in India is smooth, compliant, and growth-focused.