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Foreign Company Set-up

Registering an 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.

Overview

How an Indian subsidiary is set up

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.

  • At least two shareholders (the parent and a nominee, for a wholly owned subsidiary) and two directors.
  • At least one director must have stayed in India for 182 days or more in the previous calendar year.
  • Incorporation is filed on the MCA portal through SPICe+, which also issues PAN and TAN.
  • Foreign investment follows India’s FDI policy — most sectors are under the automatic route; investment linked to countries sharing a land border with India needs government approval.
  • Shares issued to the parent are reported to RBI in Form FC-GPR within 30 days of allotment.

Based on the Companies Act, 2013, FEMA rules and the Consolidated FDI Policy. Last updated: 27 September 2026.

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What This Service Covers

What our subsidiary set-up service covers

1

Sector check — FDI route, caps and approvals

2

Name reservation and SPICe+ incorporation with PAN and TAN

3

Director Identification Numbers and digital signatures for directors

4

Bank account, receipt of capital and share allotment

5

FC-GPR filing and first-year ROC compliance

Key facts at a glance

2 + 2

Minimum two shareholders and two directors

182 days

At least one director must meet the India-residency test

SPICe+

Single MCA form for incorporation, PAN and TAN

Automatic route

Most sectors need no prior approval

30 days

To report share allotment to the parent in FC-GPR

Press Note 3

Land-border country investment needs government approval

Common Issues

Where subsidiary set-ups commonly get delayed

Most delays come from documents signed outside India.

Foreign documents

Parent company documents need notarisation and apostille or consular attestation.

No resident director

Incorporation cannot proceed without a director who meets the 182-day test.

FC-GPR filed late

Capital received and shares allotted, but reporting to RBI missed.

Related Services

Related services

Other ways to enter India, and the compliance that follows.

India Entry Options

Compare subsidiary, LLP and offices.

Branch Office

A branch of the foreign company.

Liaison Office

Representation only, no income.

FC-GPR & FDI Compliance

Reporting foreign investment.

Documents Required

Documents we need from you

Parent Company Documents

Director & Office Documents

Our Process

How we incorporate your subsidiary

1

Sector check

We confirm the FDI route and any approvals needed.

2

Name & DSC

Name reservation and digital signatures for directors.

3

Incorporation

SPICe+ filed with MOA, AOA and director consents.

4

Bank & capital

Bank account opened and capital received from the parent.

5

FDI reporting

Shares allotted and FC-GPR filed within 30 days.

6

First-year compliance

Auditor, commencement of business and ROC filings.

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After Incorporation

After incorporation

A foreign-owned subsidiary has company law, tax and FEMA filings every year.

Commencement

INC-20A filed within 180 days of incorporation.

Auditor

First auditor appointed within 30 days.

FLA return

Filed with RBI by 15 July every year.

Annual filings

Financial statements and annual return with the ROC.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Can a foreign company own 100% of an Indian company?

    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.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    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.

    Expertvuw Management Pvt Ltd