Form C Compliance for Startups: What Foreign Founders in India Must Know

Introduction

India’s vibrant startup ecosystem increasingly attracts foreign founders, cross-border advisors, and international team members. These individuals often use co-working residences, serviced apartments, or company-arranged temporary housing during their initial setup and market entry phases.

However, a crucial legal requirement is often overlooked: Accommodation providers including co-working residential spaces, guesthouses, and serviced apartments must submit Form C to the Bureau of Immigration within 24 hours of a foreign guest’s check-in. This compliance step is vital for both the accommodation provider and the startup employing foreign nationals.

Startups frequently miss this obligation, especially when using flexible housing options or short-term vendor arrangements

Why Form C Matters for Startups and Foreign Founders

Startups often:

• House foreign founders in co-working residences or shared guesthouses without checking immigration reporting procedures.
• Rapidly change cities for fundraising, product launches, or team-building, with minimal mobility oversight.
• Use serviced apartments and temporary rentals that may not consistently file Form C.

Failure to comply with Form C can result in:

• Immigration scrutiny for both the accommodation provider and the foreign founder.
• Disruption of visa renewals or re-entries.
• Legal penalties and reputational risks for the startup.

Key Compliance Updates for Startups

• Departure Reporting Requirement:In some regions (notably Chennai and increasingly elsewhere), accommodation providers must file Form C within 24 hours of a foreign guest’s departure, in addition to arrival (Check the update below).
• Joint Responsibility:While the primary responsibility for Form C filing lies with the accommodation provider, if the provider fails, the compliance burden can shift to the company employing the foreign national. FRROs may require the company to explain failures or provide proof of submission during visa renewals or registrations.
• Form B Register Clarification:If a startup directly manages a guesthouse, it must maintain a physical Form B register in addition to submitting Form C online. The Form B register is an extra record-keeping requirement and does not replace the mandatory online Form C submission.

Form C Compliance Update 2025: Mandatory Departure Reporting Now Required

With the implementation of the Immigration and Foreigners Rules, 2025, notified by the Ministry of Home Affairs (MHA), the compliance requirements for Form C reporting in India have been expanded. Earlier, accommodation providers were responsible only for reporting the arrival and stay of foreign nationals. Now, the scope has been extended to include departure or checkout reporting as well, marking a significant regulatory enhancement in India’s immigration compliance framework.

This update underscores the government’s intent to create end‑to‑end tracking of foreign nationals through a centralised digital system managed by the Bureau of Immigration. By capturing accurate data from entry to exit, the new rules ensure that every visit is completely recorded. The move makes Form C compliance more comprehensive and technology-driven, helping authorities maintain an updated record of all foreign nationals staying in India.

What Has Changed Under the 2025 Rules?

Under the Immigration and Foreigners Rules, 2025, foreign nationals who are required to register in India must also ensure that their departure is reported to the concerned Registration Officer (FRRO/FRO) before they leave the country. The Rules are designed around a technology-enabled, online compliance system, using the Form C online portal and authorised digital platforms.

In practice, this means:

• Where the foreign national’s place of stay has been registered through Form C, the obligation to report applies both at arrival/check‑in and at departure/check‑out from that address and from India.
• The objective is to ensure that immigration records are properly closed, and there are no “open” or incomplete entries in the system when the foreigner exits India.

Role and Responsibilities of Hosts and Accommodation Providers

Hotels, guesthouses, serviced apartments, corporate housing providers, hospitals, educational institutions, and other entities hosting foreign nationals continue to play a central role in immigration compliance. While the primary obligation to report departure rests with the foreign national, hosts are expected to facilitate and support this process, particularly where Form C registration has been completed through their establishment.

Hosts should ensure that:

• Departure details are accurately updated in the registration records
• The actual or intended date of departure is correctly recorded
• Any required confirmation of exit or closure of registration is completed where applicable

By doing so, hosts help ensure that immigration records remain current, complete, and compliant with the 2025 Rules.

Why Departure Reporting Is a Critical Compliance Requirement

Historically, Form C compliance focused largely on reporting the arrival and stay of foreign nationals. The 2025 Rules adopt a more comprehensive compliance approach by explicitly recognising the importance of departure reporting as an integral part of immigration monitoring.

For hosts and establishments, failure to ensure proper departure reporting may result in:

• Incomplete or open immigration records
• Increased regulatory scrutiny or inspections
• Potential penalties or adverse compliance findings
• Complications during future visa applications or registrations involving the same foreign national or host entity

Timely and accurate departure reporting helps close the compliance loop, reducing legal exposure and demonstrating proactive adherence to evolving immigration regulations.