Overview
A foreign company can enter India by incorporating a wholly owned or majority-owned subsidiary. This involves FDI compliance under FEMA alongside company incorporation.
Key points
- Subsidiary incorporated as a private limited company in India
- Foreign investment must follow FDI policy and sector caps
- FDI inflow reporting to RBI, including FC-GPR after share allotment
- Foreign directors need a DIN and DSC
- Transfer pricing and tax planning are important for related-party transactions
Typical documents required
- Parent company incorporation documents, notarised and apostilled
- Board resolution of the parent authorising the investment
- Passport and address proof of foreign directors
- Registered office proof in India
How we work
Structuring and FDI eligibility check
Incorporation of the Indian subsidiary
Receipt of foreign inward remittance and share allotment
FEMA reporting with the authorised dealer bank and RBI
Frequently asked questions
Can a subsidiary be 100% foreign-owned?
In many sectors yes, under the automatic route. Some sectors have caps or need government approval.
What reporting is required after investment?
FDI inflow and allotment must be reported to RBI within prescribed timelines, followed by annual filings such as FLA.
This page gives general information and is not legal or tax advice. Requirements change, so confirm current rules for your situation with us before acting.