Attention NRIs: Want to Start a Business in India the Right Way

Setting up a business in India as an NRI can be an exciting opportunity — but success lies in doing it the compliant and tax-efficient way.

Here's a quick roadmap every NRI entrepreneur should follow:

1. Choose the Right Business Structure

• Private Limited Company or LLP?
• Impacts compliance, tax rate, and ease of doing business.
• NRIs are allowed 100% ownership in most sectors via automatic route.

2. Understand FDI Guidelines

• Some sectors need government approval
• 100% FDI allowed in many sectors
• Always check the sector-wise FDI limits before investing.

3. Register Your Business Properly

• PAN & TAN
• GST (if turnover > ₹20 lakhs or services apply)
• Import Export Code (for international trade)
• MSME & local licenses

4. Set Up Bank Accounts + Tax Planning

Open NRE/NRO Bank Accounts

• For smooth remittance & fund repatriation

Tax Planning Essentials:

• DTAA benefits (Double Taxation Avoidance Agreement)
• Advance Tax, TDS
• Transfer Pricing for cross-border dealings

5. FEMA & RBI Compliance

• FC-GPR filings for foreign investment
• FLA annual return
• Don't miss reporting timelines — penalties are strict!
• Stay legally safe from Day 1.