Foreign Corporate Demat Account in India: Step-by-Step Guide
A foreign corporate account in India is mandatory for foreign companies, including those that have subsidiaries in India or Indian companies that have subsidiaries abroad. Such companies are required to issue securities only in dematerialised form and must also facilitate the dematerialisation of their existing securities.
This guide explains:
- What a foreign corporate demat account is
- Latest MCA dematerialization guidelines (2025)
- Step-by-step account opening process
- Documents required & compliance checklist
- Benefits of investing in India via Arihant Capital
What Is a Foreign Corporate Demat Account?
A Foreign Corporate Demat Account is a type of dematerialized (demat) account that is opened in India by a foreign corporate entity (such as a company incorporated outside India) to hold and transact in Indian securities in electronic form.
Here’s a clear breakdown:
What it is – A demat account is required to hold securities (like shares, debentures, bonds, mutual funds, etc.) in electronic format. When such an account is opened by a foreign-incorporated company, it is called a foreign corporate demat account.
Who can open – Companies incorporated outside India that want to invest in Indian securities directly or indirectly. For example:
A foreign parent company holding shares in its Indian subsidiary.
A foreign company investing in Indian listed or unlisted companies.
Entities required by law (like under MCA’s dematerialization mandate) to dematerialize their securities if they have subsidiaries or securities issued in India.
Purpose –
- To hold securities in demat form – as per SEBI/MCA rules, securities must be dematerialized and cannot remain in physical form.
- To facilitate investment and compliance – ensures easier transfer, pledge, or corporate action handling & To comply with Indian regulations – foreign corporates that issue or hold securities linked to Indian entities must comply with the Companies Act, SEBI regulations, and depository (NSDL/CDSL) guideline
In- short:
A foreign corporate demat account is a demat account opened in India by a company registered outside India, mainly for holding and transacting in securities of Indian companies, ensuring compliance with MCA/SEBI dematerialization requirements.
Latest MCA Guidelines on Dematerialization (2025 Update)
According to the Ministry of Corporate Affairs (MCA), all Foreign Corporate Bodies in India must dematerialize their shares.
This mandatory move ensures:
- 100% compliance with Indian regulations
- Faster and transparent share transfers
- Secure, paperless record-keeping
- Seamless corporate actions
Action Tip: If your company still holds physical shares, start the dematerialization process immediately to avoid last-minute regulatory hurdles.
Why Should a Foreign Company Open a Demat Account in India?
- Direct access to India’s stock market & debt market opportunities
- Safe and electronic holding of securities
- Easy fund repatriation as per RBI rules
- Clear compliance under FEMA & FATCA
- Portfolio diversification into India’s growth economy
How to Open a Foreign Corporate Demat Account with Arihant Capital
Opening a foreign corporate demat account involves document submission, regulatory checks, and verification. Arihant Capital ensures a seamless, hassle-free onboarding process for foreign corporates.
Required Documents for Foreign Corporate Demat Account
| Document Type | Requirements |
| Application Form | Foreign corporate demat account opening form [Download PDF] |
| Company PAN | Copy signed & sealed by authorized signatory |
| Directors & Signatories PAN | Self-attested PAN of all signatories & at least 2 whole-time directors |
| Company Address Proof | Incorporation certificate / bank statement / utility bill / cancelled cheque |
| Signatories Address Proof | Passport copies (self-attested) |
| Bank Proof | Cancelled cheque / bank statement (last 3 months) |
| Board Resolution | On company letterhead (PDF) |
| List of Directors & Signatories | Specimen signatures with photos |
| Shareholding Pattern | Latest PDF copy (extra KYC if shareholding ≥10%) |
| Certificate of Incorporation | Copy signed & sealed |
| MOA & AOA | First 4 & last pages signed and sealed |
| Balance Sheet & P&L | Last 2 years, CA attested with UDIN |
| Net-Worth Certificate | If newly incorporated, certified by CA |
| Individual KYC | Required for directors, signatories, and UBO |
| UBO Declaration | Not required for listed companies or subsidiaries |
| FATCA Declaration | Mandatory (PDF) |
| Tax Identification Number (TIN) | Based on home country (e.g., SSN-USA, SIN-Canada) |
| FEMA Declaration | FEMA compliance form (PDF) |
| In-Person Verification (IPV) | Done by staff/AP or attested abroad by notary, banker, or Indian Embassy |
Non-English documents must be translated into English, notarized, and apostilled before submission.
Compliance Checklist
- Submit annual audited balance sheets after account opening
- Ensure CA attestation with UDIN on financials
- Provide FEMA & FATCA declarations every year
- Complete In-Person Verification (IPV) with originals or certified copies
How Arihant Capital Helps Foreign Corporates Stay Compliant
With 33+ years of experience, Arihant Capital helps foreign corporates open demat accounts with ease.
We provide:
✅ ISIN Creation for securities
✅ RTA Appointment support
✅ Dematerialization of Shares assistance
Our expertise ensures faster execution, full compliance, and zero hassles.
Benefits of Opening a Foreign Corporate Demat Account in India
- Invest in India’s fast-growing capital markets
- Paperless & secure holding of securities
- Quick fund repatriation under RBI rules
- Transparent FEMA & FATCA compliance
- Expert support from Arihant Capital’s compliance team
FAQs on Foreign Corporate Demat Accounts
Q1. Can a foreign company open a demat account in India?
Yes. Any registered foreign corporate entity can open a demat account by submitting KYC, incorporation documents, and compliance declarations.
Q2. What is the difference between NRI demat account and foreign corporate demat account?
An NRI demat account is for individuals, while a foreign corporate demat account is for overseas companies.
Q3. How long does it take to open a foreign corporate demat account in India?
5 working days (Subjected to KRA validation)
Q4. Is FEMA declaration mandatory?
Yes. FEMA declaration is mandatory for all foreign corporates.
Q5. What is the minimum investment for foreign companies in India?
There is no fixed minimum, but RBI’s FPI and SEBI guidelines apply.
Q6. Can foreign corporates repatriate funds?
Yes, subject to RBI regulations, funds can be repatriated back to the parent country.
About Arihant Capital Markets Limited
At Arihant Capital, we have over 33 years of experience, serving clients across 300+ cities through 800+ investment centers.
- Winner of Asia Money’s Best Retail Broker award (two consecutive years)
- Featured in Forbes Asia’s 200 Best Under a Billion Dollar Companies (2011)
- Trusted partner for corporates, investors, and institutions in India
Our mission is to provide research-driven, transparent, and compliance-ready solutions for every investor.
Final Thoughts
Opening a foreign corporate demat account in India may look documentation-heavy, but with Arihant Capital, the process is seamless, compliant, and transparent.
Start your foreign corporate demat account opening today with Arihant Capital.
