Tech startup (SaaS, fintech, deeptech)
Almost always automatic route, Pvt Ltd, with ESOP capability.
NRI Founders · Eligibility
Can an NRI Start a Business in India? FDI, FEMA and Sector Eligibility Explained
Yes — most sectors are open to 100% NRI/OCI ownership under the FDI automatic route. A handful require government approval; a few are prohibited. The structuring question matters more than the eligibility question.
Why this matters
The stakes, plainly.
Pick the wrong entity or route and you bake in years of tax leakage, FEMA reporting burden, and exit friction.
Common situations
Where this usually comes up.
Manufacturing or D2C
Automatic route mostly, with sector-specific caveats.
Restricted sectors (defence, broadcasting, retail)
Approval route, with sectoral caps and conditions.
What goes wrong
Expensive mistakes we keep cleaning up.
LLP for venture-backed business
LLPs cannot accept compulsorily convertible instruments — VC funding gets messy.
Missing FC-GPR filing
30-day window after share allotment; missed filings compound.
Pricing below FEMA fair value
Triggers tax + FEMA exposure. Valuation report must be DCF or comparable-method based.
What we cover
The engagement, in writing.
- 01FDI eligibility check for your sector
- 02Entity choice modelling — LLP vs Pvt Ltd vs branch
- 03Pre-incorporation tax and FEMA structuring
- 04Incorporation, FC-GPR, FLA filing
- 05Investor-side flow planning for future rounds
Common questions
Answered, candidly.
- Can NRIs own 100% of an Indian company?
- Yes, in most sectors under the automatic FDI route.
- Do I need a resident director?
- Yes, at least one director must have stayed 182+ days in India in the prior FY.
- How fast can I incorporate?
- 10-15 working days once documents are in order.
Authored authority
The frameworks on this page are drawn from NRI Tax Blueprint 2025 — written by Regi Tom Antony, FCA, the practicing CA who advises on the same problems every week.
On the record
What clients say after the plan ships.
“Regi mapped out the RNOR window before I moved and saved us nearly two years of needless India tax on our US brokerage. The plan was written, dated, and exactly what I needed.”
Recovered USD 38k in pre-empted tax via RNOR sequencing.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Anand R.
Tech founder, returning from California
USA → India
“We sold our Bengaluru flat from Dubai. The Section 197 lower-deduction certificate alone freed up ₹42 lakh of working capital while the sale closed. No other CA we spoke to even raised it.”
TDS reduced from 14.95% to 4.1% via Form 13.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Farah K.
Investment banker, Dubai
UAE → India
“Clear, direct, on the record. Regi told us what would and wouldn't work — and exactly what the next filing was. No upsell, no fog.”
Priya & Mahesh S.
Doctors, NHS, planning return
UK → India
Powered by the wider practice
- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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