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Foreign Corporate Demat Account in India: Step-by-Step Guide

Foreign Corporate Demat Account in India: Step-by-Step Guide

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Foreign Corporate Demat Account in India

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.

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