Entering India Through a Subsidiary
A foreign company can set up a private limited company in India as its subsidiary, holding all or most of the shares. This is the most common route for foreign businesses to operate in India with limited liability and full operational flexibility.
Most sectors allow 100% foreign investment under the automatic route, while some have caps or require government approval. After incorporation, the foreign investment must be reported to the RBI through the prescribed forms.
Your Indian subsidiary, set up end to end
- FDI eligibility and structure confirmed
- Apostilled documents guidance for foreign shareholders
- Incorporation, bank account and RBI reporting
Who Is This For?
- Foreign companies launching operations in India
- Global startups hiring an Indian team
- Overseas businesses setting up manufacturing or sourcing in India
- Groups restructuring their Indian presence
Benefits of an Indian Subsidiary
Full operational freedom
Carry on business, hire and invoice locally.
Limited liability
The parent’s liability is limited to its investment.
100% ownership in many sectors
Under the automatic FDI route.
Local credibility
An Indian entity is easier for customers and vendors to work with.
Documents Required
- Parent company’s certificate of incorporation and constitution documents (apostilled or notarised)
- Board resolution of the parent company
- ID and address proof of directors (apostilled for foreign nationals)
- Registered office proof in India and owner’s NOC
- Details of the resident Indian director
Setup Process
FDI check
We confirm the route and any sectoral conditions.
Documents
Parent and director documents prepared and legalised.
Incorporation
Name approval, DSC, DIN and SPICe+ filing.
Bank and capital
Bank account opened and share capital received.
RBI reporting
FC-GPR filed after shares are allotted.
Common Mistakes to Avoid
Foreign companies often face delays for these reasons.
- Unlegalised foreign documents – Documents usually need apostille or consular attestation.
- No resident director – At least one director must be resident in India.
- Ignoring sector caps – Some sectors limit foreign ownership or need approval.
- Late FC-GPR – The share issue must be reported to the RBI in time.
- Capital routed incorrectly – Funds must come through proper banking channels.
After Setting Up
Receive capital
Funds come into the Indian bank account.
Allot shares and report
Shares allotted and FC-GPR filed.
Annual FLA return
Filed with the RBI every year.
Transfer pricing
Related-party transactions priced at arm’s length.
Why Choose Vaidam Consultancy for Indian Subsidiary Registration
Cross-border experience
We guide foreign documents, apostille and FEMA reporting.
Clear quote upfront
You receive our fee and all government charges before we begin.
One point of contact
A single consultant prepares your documents and follows up with the authority.
Ongoing compliance
ROC, tax and FEMA annual filings can be handled for you.
Frequently Asked Questions
Yes. Every company in India must have at least one director who stayed in India for at least 182 days in the previous calendar year.
FC-GPR is filed with the RBI to report the issue of shares to a foreign investor, within 30 days of allotment.
In most sectors, yes, under the automatic route. Some sectors have caps or need government approval.
Yes. Documents executed abroad generally need to be apostilled or notarised and consularised, depending on the country.
A private company needs at least two shareholders, so a nominee is usually added.
Yes. An Indian subsidiary is taxed as a domestic company on its income.