Register a Company in India from the UK

By Manu Rao | Updated March 2026

At a Glance

Why British Investors Are Looking at India

The India-UK Comprehensive Economic and Trade Agreement (CETA) was signed on July 24, 2025, after 14 rounds of negotiation that started in January 2022. This single event changed the math for every British business considering India.

Under CETA, the UK eliminated duties on 97.4% of tariff lines — covering 99% of Indian imports by value. India granted immediate duty elimination on over 80% of tariff lines. The deal covers goods, services, investment, intellectual property, and digital trade across 11 broad service sectors with 111 sub-sectors.

Even before CETA, the relationship was substantial. Bilateral trade reached GBP 47.4 billion in the four quarters to Q3 2025, according to UK ONS data. India exported GBP 28.5 billion worth of goods to the UK, while the UK sent GBP 18.9 billion to India. The target under the new agreement: $120 billion by 2030.

UK FDI stock in India reached GBP 19.1 billion at end of 2024, up 10% from the prior year. Cumulative FDI equity inflows from the UK stand at roughly $33-35 billion since April 2000, placing the UK as India's 6th or 7th largest source of foreign investment per DPIIT statistics.

The Indian diaspora in the UK numbers 1.9 million per the 2021 Census — the largest visible ethnic minority group in Britain. London alone has 656,272 residents of Indian origin, making up 7.5% of the city's population. In the year ending June 2024, 240,000 Indians immigrated to the UK. Many maintain active financial ties to India.

Choose Your Entity Type

The structure you pick determines everything from compliance burden to exit flexibility. Here is what matters for British investors:

British investors most often go with a Private Limited Company. It offers the cleanest structure for HMRC reporting, allows equity participation, and works under automatic FDI route for almost all sectors. If you're a sole practitioner or consulting firm, an LLP can work — but check sector eligibility under DPIIT's Consolidated FDI Policy first.

Liaison Offices are sometimes used by UK firms doing initial market research in India before committing to a full entity. They cannot earn revenue in India — their role is limited to communication and coordination.

FDI Route and Sector Rules

India permits 100% FDI through the automatic route in most sectors relevant to British investors: IT and software, pharmaceuticals, healthcare, manufacturing, single-brand retail, and financial services.

Government approval is needed for defence above 74%, print media above 26%, FM radio, multi-brand retail, and satellite operations. The full list sits in DPIIT's Consolidated FDI Policy, updated through Press Notes issued periodically.

Sectors closed to all foreign investment: atomic energy, lottery and gambling, chit funds, Nidhi companies, trading in transferable development rights, real estate business (excluding construction development), and manufacture of cigars, cigarettes, or tobacco substitutes.

Press Note 3 of 2020, which mandates government approval for investments from countries sharing a land border with India, does not apply to British investors. That restriction covers China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan only.

Post-CETA, specific sectors are getting new momentum. UK whisky tariffs on India will be reduced under the agreement. Indian textiles and pharmaceuticals get tariff-free access to the UK market. For British firms, the deal opens services trade in 111 sub-sectors. If you operate in financial services, IT, legal advisory, or architecture, CETA gives you explicit market access provisions.

The top sectors where UK investors are active in India include IT and technology services, financial services and fintech, pharmaceuticals and life sciences, automotive and advanced manufacturing, and renewable energy.

Step-by-Step Registration Process

Timelines vary by method. Standard FCDO processing takes 15-20 working days (2-4 weeks). Registered service providers can get it done in about 2 working days. The e-Apostille route for electronically signed documents takes 5-48 hours. If you're a registered business, the business counter offers 24-hour turnaround for in-person submissions.

This step is where the "register in a week" claims collapse. Between solicitor attestation and FCDO processing, allow 2-4 weeks minimum.

HMRC note: Once your Indian company is active, UK residents must report all Indian income on their Self Assessment tax return using SA106 supplementary pages. HMRC receives automatic data feeds from Indian financial institutions under the Common Reporting Standard (CRS). They have been sending "nudge letters" to UK residents with unreported Indian income. Don't wait for a letter.

Document Checklist and Authentication

• Passport copy (all pages, attested by UK solicitor or notary)
• Proof of address (bank statement or utility bill dated within last 2 months, attested)
• Passport-size photographs
• Bank reference letter from UK bank
• Board resolution or letter of authority (if corporate subscriber)
• MOA and AOA (drafted and signed)
• Director declarations (Form INC-9)
• Proof of Indian registered office (rental agreement or sale deed with utility bill)

Every document signed or issued in the UK must be attested by a solicitor or notary and then apostilled through FCDO. Common mistakes: using a witness signature instead of a solicitor's attestation, submitting documents older than 6 months, or forgetting that Scottish law firms use a different notarization format than English ones. Triple-check before sending to FCDO.

India-UK DTAA: Tax Rates at a Glance

The India-UK Double Taxation Avoidance Agreement was signed in 1993. A protocol update came in 2013. Here is what the treaty rates look like:

One critical difference from the India-US treaty: the India-UK DTAA does not contain a "make available" clause. This means a wider range of technical and consultancy services are taxable at 15% in India. If you're providing management consulting, IT services, or engineering advice to Indian clients, expect 15% withholding on those payments.

Capital gains on shares: India can tax the gain only if the seller held 10% or more of the company at any point during the 12 months before the transfer. Below that threshold, only the UK taxes the gain.

Surcharge and health and education cess are not added on top of treaty rates. That keeps the effective rate at the treaty figure — a genuine saving compared to domestic rates where surcharge can push you above 20%.

To claim DTAA benefits, you need a Tax Residency Certificate from HMRC. Apply through your HMRC account or write to PT Operations North East England. Allow 4-6 weeks processing time.

Realistic Timeline: 6-8 Weeks, Not One Week

Some websites promise company registration in India within a week. Here's what actually happens when a UK-based investor starts the process:

• DSC and DIN: 1-3 days
• Name reservation via RUN: 1-4 working days
• Document preparation plus FCDO apostille: 2-4 weeks (the real bottleneck)
• SPICe+ filing through to Certificate of Incorporation: 5-15 working days
• Bank account opening: 2-4 weeks (enhanced KYC for foreign-owned entities)
• GST registration: 1-3 weeks

Total: 6-8 weeks to become fully operational. The UK-India time difference is manageable at 5.5 hours, but FCDO apostille backlogs and MCA query cycles still stretch things out. Budget 8-10 weeks for comfort.

Post-Registration Compliance Calendar

Once incorporated, here is your annual obligation map:

• FC-GPR filing: Within 30 days of receiving foreign investment. Filed through your Authorized Dealer bank to RBI under FEMA (Non-Debt Instruments) Rules, 2019. Miss this deadline and you're staring at compounding proceedings under Section 15 of FEMA.
• Board meetings: Minimum 4 per year for Private Limited companies. Maximum gap: 120 days between two consecutive meetings.
• Annual General Meeting: By September 30 each year.
• AOC-4 filing: Financial statements to Registrar within 30 days of AGM.
• MGT-7 filing: Annual return within 60 days of AGM.
• Statutory audit: Mandatory every year. No small company exemption when foreign shareholders are involved.
• Income tax return: October 31 deadline for audited companies.
• GST returns: Monthly GSTR-3B and GSTR-1 (quarterly option for turnover below Rs 5 crore).
• Transfer pricing documentation: Required under Section 92D of the Income Tax Act if your Indian entity transacts with the UK parent. Maintain contemporaneous documentation — Indian tax officers have been increasing scrutiny on cross-border transfer pricing in recent assessments.

Bank Account Opening

Count on 2-4 weeks. Indian banks apply enhanced due diligence for companies with foreign directors or shareholders. You'll need to submit CRS declarations, complete the Authorized Dealer bank verification process, and in many cases, arrange for at least one director to visit the branch in person.

Under CRS, the bank will identify your company as having UK-resident controlling persons and report account details to Indian tax authorities, who forward them to HMRC. This automatic exchange means HMRC knows about your Indian bank account whether you disclose it or not.

Private banks like HDFC, ICICI, and Axis tend to be more efficient with foreign-owned company accounts than nationalized banks. Ask your CA which branch in your registered office city has experience processing foreign entity accounts.

Profit Repatriation

Moving profits from India to the UK follows a set procedure. Your options: dividends, royalties for IP licensing, management or technical service fees, or share buyback.

The paperwork chain: TDS deducted at DTAA rates at source, Form 16A issued to the payee, a practising Chartered Accountant issues Form 15CB certifying the remittance, the company files Form 15CA on the Income Tax e-filing portal, and the Authorized Dealer bank processes the outward remittance.

Dividend Distribution Tax was abolished from April 1, 2020. Dividends are now taxed in the hands of shareholders. Under the India-UK DTAA, the general dividend withholding rate is 10%. That is lower than the US treaty rate of 15-25% and represents a genuine UK advantage.

For capital gains on share sales, India taxes the gain if you held 10% or more of the company in the preceding 12 months. Below that, only the UK has taxing rights. Structure your shareholding with this threshold in mind.

Exit Strategy

Nobody brings this up during incorporation, but you should know your options before you commit.

Strike-off (Section 248, Companies Act 2013): For companies that haven't done business for two financial years. Apply to the Registrar, who publishes notice, waits 30 days, and removes the company from the register. Simpler but only works for truly dormant entities.

Voluntary liquidation (Section 59, IBC 2016): For active companies winding down. Pass a special resolution, appoint an insolvency professional, follow the structured liquidation timeline. Expect 6-12 months to completion.

Both routes have compliance baggage. But walking away without formally closing the company is worse — the directors remain personally liable for ongoing non-compliance penalties under the Companies Act.

How Beacon Filing Helps

We handle the complete India entry process for investors based in United Kingdom. From initial structuring through post-incorporation compliance, here is what we cover:

• Foreign Direct Investment advisory — route selection, sector analysis, RBI compliance, and FC-GPR filing
• Resident Director services — appointment of a qualified Indian resident director who meets the 120-day requirement
• Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
• Tax and DTAA advisory — treaty benefit structuring, transfer pricing documentation, and annual compliance
• Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns

For a detailed walkthrough, see our case study: UK Startup Setting Up an India Development Center.

Related Country Guides

Setting up from a different country? These guides cover similar territory:

• Register a Company in India from United States of America
• Register a Company in India from Ireland
• Register a Company in India from Australia

Get in Touch

Setting up an Indian company from United Kingdom? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.

WhatsApp: +91 874 501 3644 | Email: hello@beaconfiling.com