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Home / Company Law & Secretarial Services / Indian Subsidiary of a Foreign Company
Last updated: 2 October 2026
A wholly owned subsidiary is the most common way for a foreign company to do business in India. Our team incorporates the private limited company, arranges the resident director requirement, and completes the FDI reporting after the capital comes in.
A foreign company usually sets up in India through a private limited company in which it holds all or most of the shares. The subsidiary is an Indian company — it can carry on business, sign contracts and earn income in India.
Based on the Companies Act, 2013, FEMA rules and the Consolidated FDI Policy. Last updated: 27 September 2026.
Minimum two shareholders and two directors
At least one director must meet the India-residency test
Single MCA form for incorporation, PAN and TAN
Most sectors need no prior approval
To report share allotment to the parent in FC-GPR
Land-border country investment needs government approval
Most delays come from documents signed outside India.
Parent company documents need notarisation and apostille or consular attestation.
Incorporation cannot proceed without a director who meets the 182-day test.
Capital received and shares allotted, but reporting to RBI missed.
Other ways to enter India, and the compliance that follows.
Compare subsidiary, LLP and offices.
A branch of the foreign company.
Representation only, no income.
Reporting foreign investment.
We confirm the FDI route and any approvals needed.
Name reservation and digital signatures for directors.
SPICe+ filed with MOA, AOA and director consents.
Bank account opened and capital received from the parent.
Shares allotted and FC-GPR filed within 30 days.
Auditor, commencement of business and ROC filings.
A foreign-owned subsidiary has company law, tax and FEMA filings every year.
INC-20A filed within 180 days of incorporation.
First auditor appointed within 30 days.
Filed with RBI by 15 July every year.
Financial statements and annual return with the ROC.
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Yes, in sectors where 100% FDI is allowed under the automatic route. Some sectors have caps or need approval.
Yes. At least one director must have stayed in India for 182 days or more in the previous calendar year.
The Indian company reports the share allotment to RBI in Form FC-GPR within 30 days.
A private company needs at least two shareholders, so a nominee usually holds one share for the parent.
A subsidiary is a separate Indian company with limited liability; a branch office is part of the foreign company and can only do permitted activities.
ACS – Director, Expertvuw Management Pvt Ltd
This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.