Indian Subsidiary of a Foreign Company
Foreign companies entering India most often set up a wholly owned subsidiary or a joint venture company. We handle incorporation, foreign investment reporting and the ongoing accounting and tax compliance.
Choosing the structure
- Wholly owned subsidiary or joint venture – a Private Limited company in India, the most common route.
- Liaison, branch or project office – set up with approval through an authorised dealer bank under RBI rules, with restrictions on activities.
- LLP – possible in sectors where foreign investment is allowed under the automatic route without conditions.
The sector decides whether investment is under the automatic route or needs government approval.
Process
- Checking the FDI policy for the sector and the investment route.
- DSC and DIN for directors, with notarised or apostilled documents for foreign directors and the parent company.
- Incorporation through SPICe+, with at least one director resident in India as the Act requires.
- Bank account, receipt of share capital and issue of shares.
- Reporting the foreign investment to the RBI through the FIRMS portal within the prescribed time.
After incorporation
Monthly accounting, GST and TDS, transfer pricing documentation for transactions with the parent, statutory audit, ROC filings, the annual return on foreign liabilities and assets, and income tax returns. See services for international clients.
Frequently asked questions
Do all directors need to be in India?
No. At least one director must be resident in India as defined in the Companies Act. The others can be non-residents.
How long does setup take?
Usually three to five weeks, depending mainly on how quickly attested foreign documents are received.
Can you work with our overseas accountants?
Yes. We regularly coordinate with the parent company’s finance team and auditors.
This page gives general information about Agar & Co. and its services. It is not an advertisement or solicitation, and it should not be treated as professional advice. Rates, thresholds and due dates change from time to time.