How to Register a Company in India from Japan: Step-by-Step Guide (2026)
India has become one of the fastest-growing business destinations in the world, attracting thousands of foreign investors every year. Among them, Japanese businesses have shown significant interest in expanding into India due to its large consumer market, skilled workforce, improving infrastructure, and investor-friendly government policies.
The strong economic partnership between India and Japan has created excellent opportunities for startups, SMEs, manufacturers, technology companies, and multinational corporations. Whether you want to establish a software company, manufacturing unit, trading business, consultancy, or wholly owned subsidiary, India offers a favorable environment for long-term growth.
The best part is that you do not need to travel to India to start your business. With digital incorporation services and professional assistance, Japanese entrepreneurs can complete most of the registration process remotely.
In this guide, you will learn everything about company registration in India from Japan, including eligibility, business structures, documents required, registration process, costs, compliance requirements, and post-incorporation formalities.
Why Are Japanese Companies Expanding to India?
India has emerged as one of the preferred investment destinations for Japanese companies due to its strong economic growth and expanding business ecosystem. Several factors make India an attractive market for Japanese entrepreneurs.
1. Large Consumer Market
India has a population of over 1.4 billion people, making it one of the largest consumer markets globally. Businesses in sectors such as technology, manufacturing, healthcare, automotive, retail, education, and e-commerce have significant growth opportunities.
2. Strong India–Japan Relations
India and Japan have built a long-standing strategic and economic partnership. Japanese investments are encouraged through bilateral agreements, infrastructure collaborations, and trade initiatives, creating a favorable environment for businesses.
3. Skilled Workforce
India is known for its highly skilled professionals in IT, engineering, finance, research, and manufacturing. Companies can hire qualified talent at competitive costs compared to many developed countries.
4. Government Support
The Government of India has introduced initiatives such as:
Make in India
Startup India
Digital India
Production Linked Incentive (PLI) Scheme
Ease of Doing Business Reforms
These initiatives simplify business registration and encourage foreign investment.
5. Cost-Effective Operations
Compared to many developed countries, India offers lower operational costs, including office rentals, employee salaries, manufacturing expenses, and professional services.
Can a Japanese Citizen Register a Company in India?
Yes. Japanese individuals and companies can legally register a company in India under the Foreign Direct Investment (FDI) policy.
In many sectors, 100% foreign ownership is allowed under the Automatic Route, meaning prior approval from the Government of India is not required. However, some sectors have restrictions or require government approval. It is essential to review the applicable FDI policy before making an investment.
Foreign investors must also comply with the Foreign Exchange Management Act (FEMA) and any reporting requirements prescribed by the Reserve Bank of India (RBI).
Best Business Structures for Japanese Entrepreneurs
Choosing the right business structure is one of the most important decisions when entering the Indian market. The ideal structure depends on your business goals, ownership preferences, and expansion plans.
Business Structure
Suitable For
Foreign Ownership
Private Limited Company
Startups, SMEs, service businesses
Up to 100% (subject to FDI policy)
Wholly Owned Subsidiary
Japanese parent companies
Up to 100% in eligible sectors
Limited Liability Partnership (LLP)
Professional firms and consulting businesses
Permitted in eligible sectors
Branch Office
Existing foreign companies
RBI approval may be required
Liaison Office
Market research and representation
RBI approval required
Project Office
Project-based operations
Subject to RBI regulations
For most Japanese businesses, a Private Limited Company or Wholly Owned Subsidiary is the preferred option because it offers limited liability, better credibility, and easier access to funding and business opportunities.
Eligibility Criteria for Company Registration
To register a Private Limited Company in India, the following basic requirements generally apply:
Minimum two directors
At least one resident director in India
Minimum two shareholders
Registered office address in India
Valid identity and address proof of all directors and shareholders
Compliance with the Companies Act, 2013 and applicable FDI regulations
The shareholders can be individuals, foreign companies, or a combination of both.
Documents Required for Company Registration
Proper documentation is essential for a smooth registration process. The required documents vary depending on whether the shareholder is an individual or a corporate entity.
Documents for Individual Shareholders
Passport
Address proof (bank statement, utility bill, or driving licence)
Passport-size photograph
Email address
Mobile number
KYC documents
Digital Signature Certificate (DSC), if applicable
Documents for Corporate Shareholders
Certificate of Incorporation
Memorandum of Association (MOA)
Articles of Association (AOA)
Board Resolution authorizing investment
List of Directors
Shareholding pattern
Authorized representative documents
Registered Office Documents
Rent Agreement or ownership proof
Utility bill (electricity, water, or gas bill)
No Objection Certificate (NOC) from the property owner, if applicable
Depending on the circumstances, certain foreign documents may need to be notarized or apostilled in accordance with Indian legal requirements.
Benefits of Registering a Company in India from Japan
Registering a company in India offers several long-term advantages for Japanese businesses:
Access to one of the world's largest consumer markets
Up to 100% foreign ownership in many sectors
Lower business setup and operational costs
Easy online registration process
Skilled workforce across multiple industries
Strong startup and innovation ecosystem
Government incentives for manufacturing and technology companies
Strategic location for serving South Asian and global markets
Better credibility through a registered legal entity
Opportunities for business expansion and fundraising
Estimated Cost of Company Registration
The cost of company registration depends on several factors, including the type of entity, professional fees, documentation, government charges, and additional registrations.
Expense
Approximate Cost
Government Fees
Depends on authorized capital
Professional Fees
Varies by service provider
Digital Signature
Additional
PAN & TAN
Usually included with incorporation
GST Registration
If applicable
Compliance Services
Additional
The overall investment will vary based on your business structure and regulatory requirements.
Step-by-Step Process to Register a Company in India from Japan
Once you have decided on the appropriate business structure and gathered the required documents, the next step is to complete the incorporation process. The Ministry of Corporate Affairs (MCA) has simplified company registration through its online portal, making it easier for foreign investors, including Japanese entrepreneurs, to establish a business in India.
Step 1: Choose the Right Business Structure
The first step is selecting a business structure that aligns with your business objectives.
For most Japanese investors, the preferred options are:
Private Limited Company
Wholly Owned Subsidiary
Limited Liability Partnership (LLP)
A Private Limited Company is generally the most suitable option because it offers limited liability, separate legal identity, and easier access to investment and funding.
Step 2: Obtain a Digital Signature Certificate (DSC)
Since the registration process is completed online, all proposed directors must obtain a Digital Signature Certificate (DSC). It is used to digitally sign incorporation documents submitted to the Ministry of Corporate Affairs.
Step 3: Apply for Director Identification Number (DIN)
Every proposed director of the company must have a Director Identification Number (DIN). The DIN is issued by the Ministry of Corporate Affairs and is mandatory for individuals serving as company directors in India.
Step 4: Reserve the Company Name
The next step is to choose a unique company name and apply for name approval through the MCA portal.
When selecting a company name:
It should be unique.
It should not resemble an existing registered company or trademark.
It must comply with the Companies Act, 2013 and MCA naming guidelines.
The name should reflect your business activities.
It is advisable to keep two or three alternative names ready in case your preferred name is unavailable.
Step 5: Prepare Incorporation Documents
Once the company name is approved, the incorporation documents must be prepared.
These include:
Memorandum of Association (MOA)
Articles of Association (AOA)
Director declarations
Consent to act as director
Registered office documents
Identity and address proofs
Shareholding details
All documents must be completed accurately to avoid delays during processing.
Step 6: File the Incorporation Application
The incorporation application is filed online through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form available on the MCA portal.
The application generally includes:
Company incorporation
Director allotment
PAN
TAN
EPFO registration
ESIC registration (where applicable)
Professional Tax registration (in applicable states)
Bank account integration (through participating banks)
Step 7: Certificate of Incorporation
After successful verification, the Ministry of Corporate Affairs issues the Certificate of Incorporation (COI).
The Certificate of Incorporation contains:
Company Name
Corporate Identification Number (CIN)
Date of Incorporation
Your company becomes a separate legal entity from this date.
Step 8: PAN and TAN
Along with incorporation, the company generally receives:
Permanent Account Number (PAN)
Tax Deduction and Collection Account Number (TAN)
These registrations are essential for tax compliance in India.
Step 9: Open a Bank Account
After incorporation, the company must open a current account with an authorized Indian bank.
The bank may require:
Certificate of Incorporation
PAN
MOA & AOA
Board Resolution
KYC documents of directors
Address proof
Step 10: GST Registration (If Applicable)
GST registration becomes mandatory if your business crosses the prescribed turnover threshold or engages in activities where GST registration is compulsory.
Many foreign-owned businesses choose to register voluntarily to claim input tax credit and enhance business credibility.
FEMA & RBI Compliance for Japanese Investors
Foreign investments in India are regulated under the Foreign Exchange Management Act (FEMA).
After receiving foreign investment, companies may need to comply with RBI reporting requirements, including:
Reporting foreign investment
Share allotment reporting
Annual foreign liabilities reporting (where applicable)
Compliance with pricing guidelines
Maintaining FEMA records
Professional guidance is highly recommended to ensure timely and accurate compliance.
Timeline for Company Registration
The incorporation timeline depends on document readiness, approvals, and regulatory processing.
Activity
Estimated Time
Document Collection
2–4 Days
DSC & DIN
1–2 Days
Name Approval
2–3 Days
Incorporation Filing
2–3 Days
Certificate of Incorporation
3–5 Days
Total Estimated Time: 7–10 Business Days (subject to approvals and document completeness).
Post-Incorporation Compliance
Registering a company is only the beginning. Every company must comply with ongoing legal and regulatory requirements.
Some of the major post-incorporation compliances include:
Annual ROC Filing
Income Tax Return Filing
GST Return Filing (if applicable)
Maintenance of statutory registers
Board Meetings
Annual General Meeting (AGM)
Bookkeeping and Accounting
Audit (where applicable)
TDS Compliance
FEMA Reporting
Failure to comply may result in penalties and legal consequences.
Common Mistakes to Avoid
Many foreign entrepreneurs face delays because of avoidable errors.
Some common mistakes include:
Choosing the wrong business structure
Selecting a company name without checking availability
Submitting incomplete documents
Ignoring FEMA compliance
Delaying GST registration
Not maintaining proper accounting records
Missing annual filing deadlines
Ignoring RBI reporting requirements
Working with experienced professionals can help prevent these issues.
Why Choose CompaniesNext?
At CompaniesNext, we specialize in helping foreign entrepreneurs and international companies establish businesses in India quickly and efficiently.
Our services include:
Company Registration
Wholly Owned Subsidiary Incorporation
PAN & TAN Registration
GST Registration
FEMA Compliance
RBI Reporting
Accounting & Bookkeeping
Annual ROC Compliance
Tax Filing
Business Advisory
Our experienced professionals handle the complete incorporation process, allowing you to focus on growing your business.
Frequently Asked Questions (FAQs)
1. Can a Japanese citizen own 100% of a company in India?
Yes. In many sectors, 100% foreign ownership is permitted under the Automatic Route, subject to the applicable FDI policy.
2. How long does it take to register a company in India from Japan?
The process generally takes 7–10 business days, provided all documents are complete and there are no regulatory delays.
3. Do I need to visit India to register my company?
In many cases, no. Most of the incorporation process can be completed remotely through online documentation and professional assistance.
4. What is the best business structure for Japanese companies entering India?
A Private Limited Company or Wholly Owned Subsidiary is usually the preferred choice because it offers limited liability, operational flexibility, and better credibility.
5. What documents are required for company registration?
Commonly required documents include:
Passport
Address proof
Identity proof
Photograph
Company incorporation documents (for corporate shareholders)
Registered office proof
Board Resolution (where applicable)
Conclusion
India continues to be one of the most promising destinations for Japanese entrepreneurs looking to expand their global footprint. With a growing economy, business-friendly reforms, skilled workforce, and favorable FDI policies, establishing a company in India has become more accessible than ever.
By understanding the registration process, preparing the required documents, complying with FEMA and RBI regulations, and meeting post-incorporation obligations, Japanese businesses can build a strong foundation for long-term success in the Indian market.
Whether you are launching a startup, opening a wholly owned subsidiary, or expanding an existing Japanese enterprise, proper planning and professional support can help ensure a smooth and compliant setup.
Ready to Start Your Business in India?
CompaniesNext offers end-to-end assistance for Japanese entrepreneurs looking to register a company in India. From incorporation and tax registrations to FEMA compliance and annual filings, our experts simplify every step of the process.
