A foreign national living in Spain can set up a private limited company or a limited liability partnership in India and hold most or all of it under the automatic FDI route in most sectors. At least one director, or one designated partner in an LLP, must be resident in India. Identity and address documents from Spain are notarised and apostilled by the Colegio Notarial, and the investment is reported to the RBI.
- Document route
- Notario, then apostille from the Colegio Notarial
- Time difference
- India is 3.5 to 4.5 hours ahead of mainland Spain; 4.5 to 5.5 hours ahead of the Canaries
- Law
- Companies Act 2013, FEMA 1999, NDI Rules 2019
- Minimum
- 2 directors, 2 shareholders
Company Setup for Foreigners from Spain: how it works
The founder in Spain needs a Director Identification Number and a digital signature certificate, which require apostilled copies of the passport and proof of address. A Spanish residence certificate, such as the certificado de empadronamiento from your municipality, or a recent bank statement, is commonly used as address proof once notarised and apostilled. We help you choose between a company, which suits external investment and growth, and an LLP, which can be simpler to run but has different FDI conditions. We reserve the name and draft the memorandum, articles or LLP agreement, and identify a resident director or designated partner.
After incorporation, the business obtains PAN and TAN and opens a bank account, and you remit capital from Spain. The share issue is reported in Form FC-GPR, or for an LLP the capital contribution is reported in the relevant form, on the FIRMS portal. Ongoing compliance includes annual accounts, audit for companies, income tax and GST returns where registered, and annual RBI reporting. If you plan to trade between Spain and India through the new entity, we also advise on transfer pricing where you control both businesses.
What clients in Spain should know
- The resident director requirement is tested by days spent in India during the financial year, so a relative who travels abroad often may not qualify.
- Spanish nationals who were formerly Indian citizens should use their OCI card details and Spanish passport consistently in Indian corporate filings.
- Profits taken out of India as dividends are taxed under India's tax treaty with Spain, and the founder's Spanish tax position should be checked before choosing between salary and dividends.
Step by step from Spain
Video consultation
A call at a time that suits Spain, after we have read your documents.
Documents signed in Spain
Notario, then apostille from the Colegio Notarial
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Spain where needed.
The full guide
This page covers what changes when you are in Spain. For the law, the documents and the step-by-step procedure, read our main page on Company Setup for Foreigners, or see all services for clients in Spain and the Doing Business in India practice area.
Questions from clients in Spain
Can I be the sole owner of an Indian company while living in Spain?
A private company needs at least two shareholders, but one can hold a single share as nominee. You can hold all the economic interest in most sectors.
Is an LLP better than a company for a small business?
An LLP can be cheaper to maintain, but FDI into LLPs is allowed only in sectors with 100 per cent automatic route and no performance conditions. We compare both for your plan.
Do I need to visit India to incorporate?
No. Incorporation is online with digital signatures. A visit is helpful later for banking, but often not essential at the start.