The steps to open a small company as a foreigner is the same as opening a small company as a citizen.  You can invest in a business you create in the India without being a Indian citizen.  The only difference is whether you have a right to work in the India or not and what paperwork and visas you need to enter the country.

“Many international entrepreneurs are looking to create or expand their business into the Indian market. Jilian specializes in helping those entrepreneurs, and we would like to present you with several ideas to consider first.”

Here are some of the general steps you need to follow.

  1. If you are going to visit the India or live in the India, you will need the appropriate visas and may wish to apply for permanent residence. You may wish to inquire about specific programs for foreign investors.  Like most countries, the India welcomes business people and investors that create jobs in the India.
  2. Decide on what business structure is appropriate and register your business in the state your business will be located.  Private Limited Companies (PLC) and Limited Liability company  are the most popular structures, but there are others that may be more appropriate in specific situations.
  3. Register with the GST(tax) authorities.  You will need an GST Number (GSTIN) for your business from the Ministry of Revenue.
  4. Capitalize your business with cash or assets.  The requirements for Pvt Limited is INR100000.
  5. Some local jurisdictions (city, county, district, etc.) sometimes have additional requirements.  For example, you may need a Licence for Factory setup from state authorities, NOC from Pollution departme.
  6. Rent an office somewhere.  The amount of capitalization you will need for this will vary greatly market by market.  For example, an office in Gurgaon or Pune is going to be much more expensive than an office in Mumbai or Bangalore.
  7. Setup all the other things a business needs, which is the same whether you are a foreigner or not.

As far as what your ideal capitalization should be, that really depends more on your business model and the market you serve.  It’s hard to put a specific number on it without knowing more.