How Can I Start a Business in India, If I am in Canada?

Created On: January 29, 2021
Article, India

Modified On: January 12, 2026

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Three decades have passed since India opened its market for foreign investors and allowed Foreign Direct Investment (FDI) and foreigners can now invest in the majority of Indian business sectors and the country provides a range of incentives encourage company formation in India.

Key Considerations

When a Candian citizen wants to start a business in India, the following considerations are to be kept in mind

Understanding the Indian market regarding the Indian Economic environment, Canada India trade and investment and resources for Canadian investors.
Opportunities for Canadian investors in various sectors including automotive, telecommunication, oil and gas, transportation, medical devices and healthcare, environmental technologies, food processing etc.
Preliminary assessment of readiness through research and identification of target markets, business plan preparation and market entry and, export strategy
Understanding import regulations and licensing
Investment analysis about investment procedures, types of company formation, taxation, labour force and exchange control
Finances and financing including India’s financial systems, import and export financing, types and sources of financial assistance
Legal aspects encompassing such as labour laws, intellectual property protection, litigation and arbitration, standards and conformity, performance guarantees and contractual obligations
Risk management analysis including political risks, foreign exchange risks, customer risks, corruption etc.

Key Company Types

Three types of company formation are possible in India

Public Company needing 7 or more persons
Private Company needing 2 or more persons
One Person Company, basically a private company owned by a single person

The foreign investments in India are governed by the rules and policies of FDI, FEMA, RBI and Companies Act 2013. To establish its business any foreign entity has the following options:

Joint Venture with an Indian Company
Liaison Office
Limited Liability Partnerships (LLPs)
Wholly owned subsidiary company
Branch Office

Indian Companies act 2013 details how to register private limited company in India, the most popular form of a company allowing 100 per cent FDI through automatic route in the recent reforms and made things easier for Canadian citizens to develop their business in India.

Key Documentation Requirements

Following documents are required for setting up a private limited company in India

Photographs of shareholders and Directors
Pan card
Rent agreement
List of Directors and shareholders
Authorized representative
NOC from the owner of registered office space
Address proof
Business address proof
Constitutional documents; AoA, MoA
Identity Proof; Passport, Driving license
Prior registrations, if any

Key Process Steps

The company registration is done in 5 easy steps and can be done without being physically present in India

Application for Digital Signature Certificate usually takes a day
Application for a company name; availability and reservation, generally takes 3 days
Drafting of AoA, MoA and preparation of documents, stamp duty payment and documents notarization, takes 2 days normally
Application for company registration, application for DIN allotment, PAN and TAN, takes 2 days
Application processing by Authority, issuance of the certificate of incorporation, also takes 2 days

Key Online Resources

Following are some resources that can provide additional insights to Canadian citizens for a good start of their Indian businesses

The Ministry-of-Corporate-Affairs regulating corporate affairs in India
The-Associated-Chambers-of-Commerce-and-Industry of India
The Canada-India-Business-Council, Canada’s only private sector
The CIA-World-Factbook
The Confederation-of-Indian-Industry’s web site provides news and resources about India’s industrial sectors.
Directorate-General-of-Commercial-Intelligence-and-Statistics (DGCI&S), the official organization for the collection, compilation and dissemination of India’s trade statistics and commercial information
Directorate-General-of-Foreign-Trade
The Reserve-Bank-of-India (RBI) with a large database on Indian economy
Federation-of-Indian-Chambers-of-Commerce-and-Industry
High-Commission-of-India-in-Ottawa with a range of information about the country
The India-Brand-Equity-Foundation (IBEF) is a public-private partnership between the Ministry of Commerce and Industry, the Government of India and the Confederation of Indian Industry providing a range of free FDI guides and sectoral presentations with sector-specific-government-ministries
IndiaMART, a portal for the Indian marketplace
India-Finance-and-Investment-Guide, a resource for taxes, investment and export-import policies
The Ministry-of-Commerce-and-Industry with an import-export data bank on the country’s economic activity
The directory of Indian Government official websites
Ministry-of-Micro-Small-and-Medium-Enterprises

Bottom line

Canada and India share the similar legal heritage of English common law, and in some respects, the two legal systems are almost identical. This facilitates acclimatization of a Canadian citizen with Indian corporate laws and in turn the business environment.

International trade being inherently more complex than domestic trade, retaining a legal, experienced and qualified professional services company who is familiar with the laws and procedures and possess expert knowledge of the target market, is extremely important for company setup in India.

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How Can I Start a Business in India, If I am in Canada?

Key Considerations

Key Company Types

Key Documentation Requirements

Key Process Steps

Key Online Resources

Bottom line

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