Foreign comp Registration process

General
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whats is the process of a Foreign Company who wish to invest in Indian stocks…

the process works starts from SEBI registration, broker a/c opening? where it starts?

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Step-by-Step Process for a Foreign Company to Invest in Indian Stocks

1. Choose the Investment Route

Foreign entities typically invest via:

  • Foreign Portfolio Investor (FPI) Route – For listed securities (regulated by SEBI).

  • Foreign Direct Investment (FDI) Route – For unlisted companies, startups, etc.

To invest in stocks, FPI registration is required.

2. Register as a Foreign Portfolio Investor (FPI)

  • Apply through a Designated Depository Participant (DDP).

  • Submit documents like:

    • Certificate of incorporation (COI)

    • Financial statements

    • KYC documents

    • Regulatory license in home country (if applicable)

Once approved, you get an FPI registration number from SEBI.

3. Open Bank and Demat Accounts

You must open:

  • Special Non-Resident Rupee (SNRR) Account – for rupee transactions

  • Custody Account – through a SEBI-registered custodian

  • Demat Account – with a Depository Participant (NSDL/CDSL)

  • Trading Account – with a SEBI-registered stockbroker

4. Appoint Local Agents

You may need:

  • Legal & tax advisors

  • Custodian bank

  • Chartered accountant (for tax compliance)

5. Funding and Tax Compliance

  • Transfer funds into the SNRR account.

  • Comply with FEMA regulations and Tax Deducted at Source (TDS) rules.

  • File regular returns with the Income Tax Department if applicable.

6. Start Trading

Once all accounts and approvals are in place, you can start trading on Indian stock exchanges (NSE/BSE).

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Do you have any idea, how much does it cost to register as FPI and What about Custodian charges? Where can we get detailed information?