An article by Joel Dsouza – Chartered Accountant, Compliance Strategist & Co-Founder, RegisterKaro
India’s dynamic economic growth, evolving regulatory frameworks, and investor-friendly policies are attracting a rising number of Non-Resident Indians (NRIs) to establish businesses back home. While emotional ties remain strong, the decision is increasingly driven by strategic advantages — from market potential to tax efficiency.
Key Drivers Behind the Trend
- Economic Growth & Market Potential India’s massive consumer base, rising digital adoption, and expanding middle class offer NRIs a fertile ground for scalable ventures.
- Government Initiatives Programs like Startup India and Make in India have simplified registration, reduced compliance burdens, and encouraged foreign participation.
- Favorable Investment Policies
- 100% FDI in most sectors under the automatic route
- Repatriation of profits via NRE/NRO accounts under FEMA
- Ease of fund movement with liberalized RBI norms
Legal Structures for NRI Businesses
NRIs typically choose from:
- Private Limited Company – Offers limited liability, separate legal identity, and better funding access
- Limited Liability Partnership (LLP) – Combines flexibility with legal protection and lower compliance
- Branch/Liaison Office – Suitable for foreign entities; requires RBI approval for specific activities
All structures require Digital Signature Certificates (DSC), Director Identification Numbers (DIN), and MCA filings.
Tax Perspective for NRIs
- Taxable Income – Only income earned/accrued in India is taxable
- Corporate Tax Rates – 22–25% for domestic companies; 40% for foreign entities
- DTAA Benefits – India has agreements with 90+ countries to avoid double taxation
- GST & TDS – Mandatory registration and deduction norms apply based on turnover and transaction types
Compliance Essentials
- RBI & FEMA Guidelines – Ensure proper banking channels and investment routes
- Annual Filings – MCA, Income Tax, and GST returns
- Audits – Statutory audits required for most entities
How RegisterKaro Supports NRI Entrepreneurs
RegisterKaro simplifies the journey for NRIs by offering:
- End-to-end company formation
- GST registration and tax advisory
- Ongoing compliance and regulatory support
- Expert guidance on repatriation, DTAA, and FEMA norms
With tailored services and deep domain expertise, RegisterKaro empowers NRIs to build compliant, scalable businesses in India.
