How to Open a Bank Account in India for Foreign-Owned Businesses and Non-Resident Investors

Opening a bank account is one of the first and most critical steps for any foreign company or non-resident individual seeking to do business in India. Whether you are incorporating a private limited company, setting up a liaison office, or investing as an NRI shareholder, a properly structured bank account is essential for transactions, compliance, and regulatory reporting.

At Jain Prachi & Company, we offer expert advisory and end-to-end assistance for opening and managing bank accounts in India that are compliant with Indian laws, FEMA guidelines, and Reserve Bank of India (RBI) mandates.

Types of Bank Accounts Available for Foreign Businesses and Non-Resident Investors

Foreign nationals and companies can open different types of bank accounts in India depending on their nature of presence, investment mode, and intended operations.

1. Current Account for Indian Subsidiaries or Joint Ventures

Foreign companies establishing a business presence in India—such as a private limited company, LLP, or branch office—must open a current account in the name of the entity after incorporation.

Key Features:

• Facilitates all domestic and international business transactions

• Required for statutory payments (GST, TDS, PF, ESIC)

• Opened with Indian banks authorised to deal in foreign exchange

• KYC norms must be fulfilled by directors and shareholders

Jain Prachi & Company facilitates the process by coordinating with authorised banks, preparing KYC documents, and supporting compliance under FEMA and RBI norms.

2. Bank Account for Branch Office / Liaison Office / Project Office

Foreign companies operating through a branch, liaison, or project office must obtain RBI approval before account opening.

Liaison Office: Can only open a non-interest-bearing account for receiving remittances from the parent company.
Branch Office: Permitted to open current accounts for revenue and expense operations.
Project Office: Allowed to open a bank account specifically for project-related expenses in India.

Our firm ensures end-to-end regulatory support, including RBI filing (Form FNC), AD Bank liaison, and account setup.

3. NRE and NRO Accounts for Non-Resident Individuals

Non-Resident Indians (NRIs) and foreign shareholders can open the following personal accounts:

• NRE Account: Repatriable in foreign currency; used for foreign income

• NRO Account: Non-repatriable (except up to USD 1 million per financial year); used for income earned in India

Benefits:

• Maintain savings and investments in Indian rupees

• Receive dividends, rent, or interest income

• Comply with FEMA and tax reporting requirements

Documentation Required for Bank Account Opening

For Business Accounts (Companies, Branch Offices):

• Certificate of Incorporation (COI) and PAN

• Board resolution authorising account opening

• Memorandum and Articles of Association (MOA & AOA)

• KYC documents of authorised signatories (passport, visa, address proof)

• RBI approval (if applicable for branch/liaison/project office)

• FATCA and CRS declarations

For NRI Accounts:

• Valid passport and visa copy

• Overseas address proof

• PAN card or Form 60

• Photographs and filled account opening form

• Proof of NRI status (employment, student visa, residence permit)

We assist in verifying all documentation and help submit the same to your preferred bank.

How Jain Prachi & Company Helps

Setting up a bank account in India can be time-consuming and bureaucratic for overseas entities due to multi-agency compliance. Our experienced team simplifies the process by:

• Advising on the appropriate account type

• Preparing and verifying KYC documentation

• Liaising with authorised dealer banks (AD Banks)

• Coordinating RBI approvals where necessary

• Ensuring tax, FEMA, and company law compliance

Timelines for Opening a Bank Account

Delays may occur due to incomplete documents or pending regulatory clearances. We ensure timely follow-up with the bank and provide post-opening compliance support.

Common Mistakes to Avoid

• Not completing post-incorporation formalities before initiating the account process

• Submitting incomplete KYC or foreign shareholder details

• Failing to obtain RBI approval before opening an account for certain entities

• Using personal accounts for business operations, leading to tax scrutiny

Jain Prachi & Company ensures your business banking is fully compliant and efficient from day one.

Need Help Opening a Business Bank Account in India?

Whether you are an NRI investor or a global company setting up in India, our team can guide you through the legal, regulatory, and practical steps of establishing the right banking infrastructure.

📧 Email: contactus@jainprachi.com
🌐 Website: https://jainprachi.com

Reach out today to schedule your consultation and begin your India operations without delay.

FAQs – Bank Account Opening for Foreign Entities in India

Q: Can a foreign national be a signatory to a business account in India?
Yes, provided KYC and FEMA norms are met. Passport and visa details must be submitted.

Q: Is RBI approval required for all foreign business accounts?
Only for branch, liaison, or project offices. Indian subsidiaries do not require RBI approval for opening current accounts.

Q: Can an NRI invest in an Indian company using an NRE account?
Yes, but the investment must comply with FEMA guidelines and be reported to RBI through the authorised dealer bank.