The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
Foreign companies must register for GST in India to legally supply goods or services, avoid hefty penalties, and comply with tax laws as a Non-Resident Taxable Person (NRTP). Registration is mandatory for taxable supplies, allowing them to claim Input Tax Credit (ITC), build credibility, and access the Indian market directly.
Eligibility Criteria
Any foreign company undertaking company registration in India and supplying goods and/or services to recipients in India, even without a fixed place of business or residence, must mandatorily obtain GST registration if it makes taxable supplies within India without a fixed place of business. Registration is required for any taxable supply, regardless of turnover thresholds, specifically when making B2B or B2C transactions, hosting events, or making taxable supplies in India.
Documents Required
Foreign companies registering for GST in India (typically as a Non-Resident Taxable Person) require, primarily, a Certificate of Incorporation/Establishment from their home country, notarized/apostilled copies of the passport for directors, a PAN card (not mandatory, but preferred), proof of business address in India (or abroad), and a bank account statement. An appointed Indian authorized signatory’s PAN and Aadhaar are mandatory for Pvt Ltd company registration in India.
GST Registration Process / Procedure
With the assistance of a GST consultant, they must apply for registration at least five days in advance before making any supply.
A GSTIN is issued upon verification. The registration is valid for 90 days. It can be extended by another 90 days via FORM GST REG-11. The extension must be applied before expiry, and advance tax must be paid for the extended period as well.
Timeline & Fees
Standard GST registrations are typically approved within 7 working days when Aadhaar authentication is completed. Engaging a professional tax consultant can help ensure accurate documentation and faster approval without unnecessary queries or delays. Non-resident registrations, which may involve manual verification, generally take 2–7 working days. Approval is usually granted within 7 working days if all documents are complete; however, if no action is taken by the tax authority within 30 days (for reasons such as physical verification), the registration may be deemed approved. There is no government fee for GST registration, though professional fees may apply if assistance is taken from consultants or chartered accountants.
Compliance After Registration
Non-resident taxable persons must file Form GSTR-5 monthly within 20 days of month-end or 7 days from registration expiry, whichever is earlier, and pay tax in advance based on estimated liability. Registration is valid for up to 90 days and may be extended via Form GST REG-11. ITC is allowed only on imported goods, not on local procurements. NRTPs must maintain books in India, display the GST certificate, update Indian bank details within 45 days, and surrender registration through Form GST REG-16 after business completion.
While statutory audits are generally not applicable, departmental audits may be conducted if selected by tax authorities.
Conclusion
In summary, a foreign company supplying goods or services in India without a fixed place of business is classified as a Non-Resident Taxable Person (NRTP) and must obtain GST registration before starting operations. This involves determining eligibility, submitting the required documents, applying in advance, obtaining a time-bound GSTIN, and meeting key compliance requirements such as advance tax payment, GSTR-5 filing, record maintenance, and timely surrender of registration. GST registration is essential for foreign businesses to operate lawfully in India, avoid penalties, and access the Indian market with regulatory certainty, while enabling smooth engagement with Indian customers and tax authorities.
India Company Incorporation (ICI), one of the leading company registration consultants in India, supports foreign companies at every stage of this journey, offering end-to-end assistance on GST registration, compliance management, advisory, and closure formalities. With ICI’s expertise in business setup in India, foreign businesses can confidently enter and operate in India while remaining fully compliant with GST regulations.
FAQs
1. Can a foreign company register without a permanent office in India?
Yes, a foreign company can register and operate in India without a permanent, owned office by using a registered office address (subject to approval by the GST authorities), virtual office, or setting up a Liaison/Branch/Project Office, provided they have a local address for correspondence.
