How European Companies Can Register Business In India? (Updated 2026)

Published Thu, 12 Feb 2026 | Updated Thu, 12 Feb 2026 Startup

“So, if you have to choose one country to invest, it is India. And, if I ask to choose a second one, I would pick India too. There is no other country with that level of opportunities”. -Fabin Pinckaers (CEO of Odoo)

This strong expression by Europe's youngest billionaire is another evident testament to India's growing startup ecosystem and favourable market dynamics that invite European companies to register their businesses in India.

Therefore, at Companiesnext, we have crafted an exclusive guide for EU founders that acts as a robust business GPS, providing a tidy roadmap to enter the Indian market systematically.

So, if you’re an EU-based individual or enterprise willing to register a company in India in 2026, this is the only guide you need!

Also Read: Why Should European Investors Choose India for Starting a Business?

Select the Right Legal Business Structure

How to Register a Business In India? A 5-Step Process

Why You Should Choose Companiesnext to Register a Business in India?

The Takeaway

FAQs (Frequently Asked Questions)

 

Select the Right Legal Business Structure: The First Step

The first and most significant step to penetrate the Indian market as a foreign venture is having the right legal business structure.

But why? you may ask.

Having an ideal legal business structure that aligns with your entry market strategy and long-term goals is paramount to sustaining and thriving in India’s vast and dynamic market.

Also, this single decision of yours will shape your business operations, taxation and compliance responsibilities down the line.

As per the Companies Act, 2013, European companies can choose a legal business structure from different options as per their intended level of commercial activity, risk tolerance, and long-term commitment.

The Legal Business Structures for European Companies:

Private Limited Company	Limited Liability Partnership	Branch Office
Fastest and most preferred structure by EU Founders. Eg, Nestle India. It provides limited liability, scalability and the ease of raising capital. It is often established as a Wholly Owned Subsidiary. Private Limited Company business structure offers 100% foreign ownership and complete operational control.	Ideal for professional services, IT firms, and consulting. Offers limited liability with minimal compliance responsibilities. LLP provides relaxed FDI norms, resulting in gaining transaction among foreign investors.	Best business structure for exercising trading and other service activities affiliated with the parent company. Popular among European businesses sectors like tech, finance, and engineering. Investors can repatriate (send profits back to their country), but operations are limited.

 

Companiesnext Recommends: Understanding The Difference Between a Wholly Owned Indian Subsidiary and a Branch Office

 

Liaison Office	Project Office	Joint Venture (JV)
Non-commercial business setup for market research and brand visibility. The right choice for EU businesses willing to contemplate the Indian market prior to committing resources.	Temporary business setup dedicated to certain contracts or projects without long-term commitment Best business system for infrastructure or engineering.	Collaboration with an Indian Partner for shared expertise, resources, and risks. Eg, Tata Starbucks Pvt. Ltd., Volvo Eicher Commercial Vehicles Ltd. Beneficial for sectors that mandate local insight or market connections.

 

So, these are the legal business structures provided to foreign nationals for setting up a business in India. Each structure has its own distinct offerings and regulatory implications.

Still, the Private Limited Company is the most opted structure for establishing a foreign business in India: the credit goes to its agility, flexibility, and long-term advantages.

Now, let’s move on to the process of registering a foreign company in India.

How to Register a Private Limited Company in India? A 5-Step Process

The journey of registering a business in India as a foreign investor begins with securing mandatory documents, reserving a company name, PAN, TAN & GST registration, and opening a corporate bank account.

So, without any further delays, let's check out the process for registering a business in India

Step 1: Secure DSC and DIN Documents

• As a foreign investor, you have to procure a Digital Signature Certificate (DSC) and a Director Identification Number.

• You can apply for the respective documents from the Ministry of Corporate Affairs (MCA) portal.

Step 2: Opt for a Company Name

• Next, reserve a company name as per your preference, which adheres to Indian regulatory laws.

• To ensure the compliance of the chosen company name, you can submit the name request using MCA’s RUN service.

Step 3: Set Up the Business with MCA

• Submit the required incorporation documents (Memorandum of Association (MoA) and Articles of Association (AoA).

• The Certification of Incorporation will be issued once the incorporation documents are approved by the respective authorities.

Step 4: Acquire PAN, TAN, & GST Registration

• To operate your business legally in India, you have to apply and register the company for PAN, TAN, & GST.

Step 5: Open a Corporate Bank Account

• Lastly, you have to open a Corporate Bank Account for conducting the business transactions.

Why Should You Choose Companies next to Register Your Business in India?

Company registration in India is a time-consuming and tedious process, and as a foreign investor, it could be an overwhelming experience for you.

Therefore, collaborating with a trusted partner like CompaniesNext, which offers all business-related services in one place, can be a smart move to start and grow your business in India.

• We firmly believe in a transparent, customer-first approach.
• We are powered by a dedicated and specialised team of professionals to cater for your business needs.
• We prioritise timely deliveries of services.
• We cater business-related services to mid-to-large Indian and global corporates; large and trusted clientele.

Our Mission

To simplify the process of starting and running a business in India by offering expert, end-to-end services under one roof from registration to legal, tax, and funding support.

Our Vision

To become India’s most trusted partner for business setup, compliance and advisory enabling entrepreneurs to focus on growth while we handle the rest.

Must Check Out: Key Legal Considerations for Foreign Startups Expanding to India

The Takeaway: India Market Entry For European Business

Setting up a business in India as a European-based founder mandates a rationalised and accommodative approach, which includes the following:

• Selecting the ideal business structure
• Complying with mandatory registrations,
• Adhering to the Indian rules & regulations (The Companies Act, 2013, RBI Guidelines, Income Tax Act, GST Act etc.)

Additionally, your business strategies should also align with India’s large and unique market.

Therefore, it is profound for European investors to leverage a reliable and streamlined guide like Companiesnext that assists them in registering their business in India effortlessly, efficiently, and effectively.

Expand Horizon and Unlock Growth: Register Your Business in India with Companiesnext, Now!

FAQs (Frequently Asked Questions)

Q.1: Why Should European Companies Register Business in India?

India is the world’s 4th largest economy with a growing startup ecosystem, tech-savvy human resources, and a 1.2 billion consumer market that offers substantial growth and makes India a top destination for foreign investment.

Q.2:  What are the Types of Legal Business Structure for European Companies in India?

The types of legal business structure for European businesses are as follows: Private Limited Company, Limited Liability Partnership, Branch Office, Liaison Office, Project Office, Joint Venture (JV).

Q.3: Can European Companies Register for GST in India?

Yes, European companies can register for GST in India ✅. Here are the essential documents required for GST registration for foreign companies.

Q.4: Can I Register a Company in India from Abroad?

Yes, foreign company registration in India from abroad is eligible ✅. The available legal business structures are Private Limited Company, Public Limited Company,  Limited Liability Partnership (LLP), Branch Office, Liaison Office, Project Office, Joint Venture.

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