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C S Rushil & Co.Chartered Accountants

India Entry · Foreign Companies & Founders

Setting Up a Company in India as a Foreign Business: Subsidiary, LLP or Branch

Entity selection, FDI route checks, document legalisation, SPICe+ incorporation and post-incorporation FEMA reporting for foreign companies and founders setting up in Chennai, Tamil Nadu or elsewhere in India.

Can a foreign company or foreign national register a company in India?

Yes. Foreign companies and individuals can own up to 100% of an Indian private limited company under the automatic route in most sectors, without prior government approval. Some sectors need government approval or carry foreign-ownership caps, so the first step is checking the FDI Policy for your activity. A private company needs at least two directors and two shareholders, and at least one director must have stayed in India for 182 days or more in the financial year. After incorporation, the share allotment must be reported to the RBI in Form FC-GPR. For current rules and procedures, see the Ministry of Corporate Affairs (mca.gov.in).

What we handle in an India entry

Entity Choice: Subsidiary, LLP or Office

We compare a wholly owned subsidiary, an LLP, and a branch, liaison or project office against what you plan to do in India, covering tax, liability, permitted activities and ongoing compliance.

FDI Route and Sector Check

We check your activity against the FDI Policy and the FEMA (Non-debt Instruments) Rules to confirm whether it falls under the automatic route or needs government approval, and whether any cap applies.

Document Legalisation

Passports, address proofs and the parent's board resolution and incorporation certificate are notarised and apostilled in Hague Convention countries, or consularised at the Indian mission elsewhere. We give you the exact list.

DSC, DIN and SPICe+ Incorporation

We obtain digital signature certificates for directors, file the SPICe+ incorporation forms with name reservation, MOA and AOA on the MCA portal, and secure PAN, TAN and the certificate of incorporation.

Bank Account and Capital Inflow

We help open the company's current account with an authorised dealer bank and ensure share capital is received through banking channels with the KYC and FIRC documents needed for FEMA reporting.

FC-GPR, INC-20A and First-Year Set-Up

We file FC-GPR on the RBI FIRMS portal within 30 days of share allotment, the INC-20A commencement declaration within 180 days of incorporation, and register for GST and payroll where needed.

Steps to incorporate an Indian subsidiary from abroad

  1. 1

    Confirm structure and FDI route

    Decide between a subsidiary, LLP or branch office, and confirm that your sector is open under the automatic route or plan for the government approval process.

  2. 2

    Appoint directors and resident director

    Identify at least two directors, including one who meets the 182-day India stay requirement, and two shareholders, which can be the foreign parent and a nominee.

  3. 3

    Legalise and send documents

    Have identity, address and parent-company documents notarised and apostilled or consularised, then courier or upload them for verification.

  4. 4

    Obtain DSC and file SPICe+

    Directors' digital signatures are issued, the name is reserved, and the SPICe+ forms with MOA and AOA are filed with the Registrar of Companies for incorporation.

  5. 5

    Open bank account and bring in capital

    The company opens an account with an authorised dealer bank, the parent remits subscription money, and shares are allotted to the foreign shareholders.

  6. 6

    Complete FEMA and statutory filings

    FC-GPR is filed within 30 days of allotment, INC-20A within 180 days of incorporation, and the first auditor, GST and payroll registrations are put in place.

Related services

FAQ

Frequently asked questions

Can a foreigner own 100% of a company in India?

Yes, 100% foreign ownership is permitted under the automatic route in most sectors, so a foreign parent can hold all the shares of its Indian subsidiary. A nominee shareholder is commonly used to meet the two-shareholder minimum. Some sectors need government approval or have caps on foreign holding, and investors from countries sharing a land border with India need government approval in all sectors.

Does an Indian subsidiary need a resident director?

Yes, every Indian company must have at least one director who has stayed in India for at least 182 days in the financial year, under section 149(3) of the Companies Act, 2013. This director can be an Indian citizen or a foreign national living in India. Foreign groups often appoint a senior India employee or a trusted local professional to this role.

What is the difference between a subsidiary, a branch office and a liaison office?

A subsidiary is a separate Indian company that can carry on any permitted business, while branch and liaison offices are extensions of the foreign company with restricted activities. A liaison office cannot earn income in India and only represents the parent. Branch, liaison and project offices need RBI approval through an authorised dealer bank, whereas a subsidiary in an automatic-route sector does not.

How long does it take to register a company in India from abroad?

The incorporation itself on the MCA portal typically takes a few weeks once documents are ready, but overall timing depends mostly on how quickly foreign documents are legalised. Apostille or consular attestation in the home country often takes longer than the Indian filings. Opening the bank account and receiving capital adds further time before the company is fully operational.

What is FC-GPR and when is it due?

FC-GPR is the form an Indian company files on the RBI FIRMS portal to report shares issued to a foreign investor, and it is due within 30 days of the allotment. It is filed through the company's authorised dealer bank with the FIRC, KYC of the investor, and a valuation certificate. Late filing can attract a late submission fee or compounding under FEMA.

What ongoing compliance applies after incorporation?

After incorporation, the company files an annual FLA return with the RBI by 15 July, annual ROC filings, income tax returns, and transfer pricing documentation for transactions with the foreign parent. It also needs a statutory audit, board meetings, GST returns if registered, and TDS and payroll filings. Our India subsidiary compliance retainer covers this annual cycle.

Why set up in Chennai or Tamil Nadu?

Chennai has an established base in automotive and EV manufacturing, electronics, engineering services and global capability centres, with industrial parks run by SIPCOT around the city. Guidance Tamil Nadu is the state's investment promotion agency and the first point of contact for state incentives and facilitation. A Chennai-based CA firm can deal with the local Registrar, GST offices and banks directly.

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What clients say on Google

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May 2026
“I used to find tax compliance confusing and honestly a bit stressful, especially with how often regulations seem to change. Working with C S Rushil & Co has made a huge difference. They simplified everything, explained what actually matters for my business, and handled things smoothly from GST filings to more detailed financial reviews. What I appreciate most is their proactive approach they don’t just react, they guide you ahead of time. It’s given me a lot more clarity and confidence in managing my business finances.”

Gokul D.

GST & financial reviews · posted on Google

May 2026
“Working with C S Rushil & Co has completely transformed my approach to business; their proactive handling of my GST and TDS filings has replaced monthly deadline stress with total financial clarity.”

Mahalakshmi

GST & TDS filings · posted on Google

May 2026
“Excellent for ITR and GSTR filing. Professional, responsive and reliable. The entire process was smooth and hassle-free.”

Sughirtha D.

ITR & GSTR filing · posted on Google

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