Indian subsidiary for foreign companies
Foreign companies most often enter India through a wholly owned subsidiary or a joint venture with an Indian partner. In most sectors, 100% foreign ownership is allowed under the automatic route, subject to the FDI policy. We handle incorporation, the FEMA reporting that follows foreign investment, and the accounting and tax compliance once operations begin.
What this covers
- Sector check under the FDI policy
- Incorporation of the Indian private limited company
- Apostille and notarisation requirements for foreign documents
- Bank account opening and inward remittance of capital
- FC-GPR reporting to RBI after allotment of shares
- Transfer pricing, accounting, payroll and tax compliance after setup
How the work is done
- Review the sector, structure and shareholding
- Arrange attested documents from the parent company
- Incorporate the Indian company and open its bank account
- Receive capital, allot shares and file FEMA reports
Documents usually needed
- Certificate of incorporation and constitutional documents of the parent
- Board resolution of the parent authorising the investment
- Passport and address proof of foreign directors (apostilled)
- Indian registered office proof
Frequently asked questions
Does a foreign subsidiary need an Indian resident director?
Yes. Every Indian company must have at least one director who has stayed in India for 182 days or more in the previous calendar year.
What is FC-GPR?
It is the report filed with RBI through the FIRMS portal after an Indian company issues shares to a foreign investor. It must be filed within 30 days of allotment.
Do transactions with the parent company need transfer pricing documentation?
Yes, where the international transactions exceed the prescribed limits. An accountant's report in Form 3CEB is also required.