India Entry for Foreign Investors

Foreign Company Formation in India

Wholly Owned Subsidiary, Branch, Liaison and Project Office setup — with FDI, FEMA and FC-GPR compliance coordinated end-to-end.

Plan Your India Entry

In short: Most foreign investors set up a Wholly Owned Subsidiary under the automatic FDI route, file FC-GPR within 30 days of share allotment, and elect the 22% corporate tax regime under Section 115BAA (~25.17% effective).

India entry options

Wholly Owned Subsidiary (WOS)

Preferred structure — Indian company with 100% foreign shareholding under the automatic route.

Branch Office

For established foreign companies undertaking permitted activities in India — RBI approval required.

Liaison Office

Representative office for market research, promotion and communication — no revenue activity.

Project Office

Temporary presence to execute a specific contract in India, backed by RBI approval.

FDI, FEMA & FC-GPR

India permits 100% FDI under the automatic route in most sectors. Post-incorporation, inbound funds are reported to the RBI via the FIRMS portal, and every share allotment to a non-resident triggers an FC-GPR filing within 30 days. Annual reporting includes the Foreign Liabilities and Assets (FLA) return.

The route split is set by the FEMA (Non-debt Instruments) Rules, 2019 and the RBI Master Direction on Foreign Investment in India: the automatic route needs no prior approval, while the government (approval) route applies to capped or sensitive sectors. Separately, Press Note 3 requires prior government approval for investors from land-bordering countries, or where the beneficial owner is situated in such a country, regardless of sector (position as of 2026). Capital must reach the Indian company as an inward remittance through an AD Category-I bank, evidenced by a FIRC and KYC report, and the allotment is reported in FC-GPR within 30 days on the RBI FIRMS portal. Sector position is set out on our FDI entry routes and sector caps page, and the full year-one filing stack on the annual compliance calendar for a foreign subsidiary.

Directors, capital and documents

Section 149(3) of the Companies Act, 2013 requires at least one director resident in India — a person who stayed in India for 182 days or more during the financial year. Every proposed director needs a DIN (allotted through SPICe+) and a Class 3 DSC; foreign directors obtain the DSC against an apostilled passport. There is no minimum paid-up capital under the Act: you declare an authorised capital in the Memorandum and pay in only the paid-up capital the business needs, subject to FEMA pricing. Parent-company documents — board resolution, certificate of incorporation, charter and director IDs — must be apostilled (Hague Convention countries) or notarised and consularised otherwise. At filing you also select the correct NIC business-activity code, which drives the sectoral FDI cap, the MOA objects and later GST classification.

Comparing this against a branch, liaison or project office? See branch vs liaison vs project office vs subsidiary. For budget and lead time, see the cost and timeline of company setup in India, and for getting profits back out, profit repatriation from India.

Ongoing FEMA / RBI compliance (FC-GPR, FLA) and Form 15CA / 15CB certification for outward remittances are delivered by our sister firm SME Advisory. For NRI and OCI founders, our sister firm NRI Blueprint covers NRI founders — tax & FEMA planning on the personal side.

Tax comparison at a glance

Structure	Legal status	Tax rate	Repatriation
WOS (Pvt Ltd)	Indian domestic company	~25.17% under 115BAA	Dividends after DDT is abolished — TDS applies
Branch Office	Extension of foreign parent	~43.68% (foreign co rate)	Profits repatriable subject to RBI
Liaison Office	Not permitted to earn income	N/A	N/A
Project Office	Extension of foreign parent	~43.68% on project income	Surplus on completion, with RBI approval

Frequently asked questions

What is the fastest way for a foreign company to enter India?

A Wholly Owned Subsidiary (WOS) under the automatic FDI route is the fastest and most flexible entry — incorporation via MCA SPICe+ in 10-15 working days, with FEMA reporting handled post-funding.

What is FC-GPR and when do I file it?

FC-GPR is the RBI form filed on the FIRMS portal within 30 days of allotting shares to a non-resident. It confirms inbound FDI and pricing compliance under FEMA.

How is a foreign subsidiary taxed?

An Indian subsidiary is a domestic company. Under Section 115BAA, most opt for a 22% base rate (~25.17% effective with surcharge and cess), subject to the concessional-regime conditions.

Do I need RBI approval to invest in India?

Most sectors permit 100% FDI under the automatic route — no prior RBI approval required. Sectors on the approval route (defence, some financial services, etc.) need DPIIT and government clearance.

Does an Indian subsidiary need a resident director?

Yes. Section 149(3) of the Companies Act 2013 requires at least one director who stayed in India for 182 days or more in the financial year. Foreign directors need a DIN and a Class 3 Digital Signature Certificate (DSC) before filing SPICe+.

Is there a minimum capital to register a company in India?

No. The Companies Act 2013 prescribes no minimum paid-up capital. You declare an authorised capital in the MOA and pay in only the paid-up amount you need; capital brought in by the foreign parent must arrive as an inward remittance with a FIRC and KYC from the AD bank.

Which investors are restricted by Press Note 3?

As of 2026, an investor from a country sharing a land border with India — or whose beneficial owner sits in such a country — needs prior government approval under the FEMA (Non-debt Instruments) Rules 2019, whatever the sector or automatic-route position.

Related guides

Last reviewed: July 2026 · Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates.

Planning your India entry?

Share your structure and timelines — we’ll suggest a workable path under FDI and FEMA.

Get in Touch